Ford Transfers Its UAW Retiree Health Care Liabilities to VEBA Trust

[gocash]

DEARBORN, Mich., Jan 04, 2010 /PRNewswire-FirstCall via COMTEX News Network/ --

 

Ford Motor Company (NYSE: F) announced today that on Dec. 31, 2009, it completed the transfer of its UAW retiree health care liabilities to the UAW Retiree Medical Benefits Trust ("VEBA Trust").

 

Pursuant to a court-approved settlement agreement, the transfer of these liabilities was implemented by Ford transferring on Dec. 31 the following assets to the VEBA Trust:

 

 

-- An Amortizing Guaranteed Secured Note maturing June 30, 2022, with an

original principal amount of $6.7 billion with a corresponding estimated

present value of $4.8 billion ("New Note A");

-- An Amortizing Guaranteed Secured Note maturing June 30, 2022, with an

original principal amount of $6.5 billion with a corresponding estimated

present value of $4.7 billion ("New Note B" and, together with New Note

A, the "New Notes");

-- Warrants expiring on Jan. 1, 2013, to purchase 362 million shares of

Ford Common Stock at a price of $9.20 per share;

-- Assets in a Temporary Asset Account consisting of cash and marketable

securities with an estimated value of $620 million; and

-- Assets in Ford's internal VEBA trust consisting of cash and marketable

securities with an estimated value of $3.5 billion.

 

Also on Dec. 31, Ford made the following payments on the New Notes:

 

 

-- A scheduled payment of $1.4 billion on New Note A;

-- An additional pre-payment of $500 million on New Note A; and

-- A scheduled payment of $610 million on New Note B, which was paid in

cash, in lieu of Ford's option of making New Note B payments in Ford

Common Stock. Had Ford chosen to pay in stock, the shares would have

been issued at the 30-day volume weighted average price of $9.13, while

Ford Common Stock closed at $10 on Dec. 31.

 

As a result of these actions, the New Notes will represent about $7 billion in incremental debt on Ford's balance sheet.

 

"The transfer of these health care liabilities to the VEBA Trust is the culmination of several years of work and will significantly improve our competitiveness in the U.S.," said Lewis Booth, Ford's chief financial officer. "We have removed a substantial health care liability from our balance sheet and have significantly reduced health care expenses. We also have shown confidence in our liquidity and One Ford plan by pre-paying $500 million of debt owed to the VEBA Trust."

 

Additional details about this transaction are included in Ford's Current Report on Form 8-K filed today with the U.S. Securities and Exchange Commission.

 

About Ford Motor Company

 

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com.

 

SOURCE Ford Motor Company

[flipuaw164]

goodbye retire healthcare

its just a matter of how long will it take for veba to go broke ?

i say 5 years

[Lifter]

goodbye retire healthcare

its just a matter of how long will it take for veba to go broke ?

i say 5 years

 

 

Been trying since the first to find out what benefits have changed with VEBA, seems like its being kept secret, no info online, got regestered with Blue Cross, still haven't found any explanation of benefits. The only thing is that the UAW is supposed to send us a packet this month, why wait till the plan is in effect before letting us know what we got . Dont sound just right some how.

[jasonj80]

Been trying since the first to find out what benefits have changed with VEBA, seems like its being kept secret, no info online, got regestered with Blue Cross, still haven't found any explanation of benefits. The only thing is that the UAW is supposed to send us a packet this month, why wait till the plan is in effect before letting us know what we got . Dont sound just right some how.

 

hmm might want to call if you don't have it soon, my grandma got her packet in the mail last week, seems like all the copays are higher but coverage is the same.

[lquidspine]

Dental is going through Delta now, you should have gotten a packet in early/mid December explaining the changes as well as it having the info you needed for new dental cards.

 

Other changes include increased co-pay scales for prescription drugs, those where the main changes. I may have missed some things and sorry I do not have the specifics, but if you have not received anything already you need to call the NESC 1-800-248-4444

[tbldbxorntnap]

Dental is going through Delta now, you should have gotten a packet in early/mid December explaining the changes as well as it having the info you needed for new dental cards.

 

Other changes include increased co-pay scales for prescription drugs, those where the main changes. I may have missed some things and sorry I do not have the specifics, but if you have not received anything already you need to call the NESC 1-800-248-4444

Well I was on the phone yesterday with my new bcbs rep. and found out that I'm responsible for office visit cost[$65-to $130 per visit] and since I'm a diabetic also responsible for 10% of my twice annual lab test to a max.of $570 before they pick up at 100%, and learned that there are two mail order Companys that I'll have to choose from to handle my testing supplies, sure wish i was still with my old HMO.

[forddaughter]

Well I was on the phone yesterday with my new bcbs rep. and found out that I'm responsible for office visit cost[$65-to $130 per visit] and since I'm a diabetic also responsible for 10% of my twice annual lab test to a max.of $570 before they pick up at 100%, and learned that there are two mail order Companys that I'll have to choose from to handle my testing supplies, sure wish i was still with my old HMO.

 

 

We got ours last week.

 

50% co-pay on office visits is what mine says.

 

Quite frankly it wasn't as bad as I thought it was going to be. The Dental is fantastic a lot better than what we had. Still hate the vision as SVS sucks.

 

The only mail in I see is for Medco, which again is great. NextRx stunk.

[tbldbxorntnap]

We got ours last week.

 

50% co-pay on office visits is what mine says.

 

Quite frankly it wasn't as bad as I thought it was going to be. The Dental is fantastic a lot better than what we had. Still hate the vision as SVS sucks.

 

The only mail in I see is for Medco, which again is great. NextRx stunk.

All I can say is your lucky to have 50% co-pay , my wife thought we had that too, till I showed her at bottom of our card where it said Traditional Care Network , alas just have to be almost dead before seeing my doctor.

[longball]

Forddaughter...What state do you live in?

[Lifter]

hmm might want to call if you don't have it soon, my grandma got her packet in the mail last week, seems like all the copays are higher but coverage is the same.

 

 

Got the packet this afternoon, sure wish I had the HMO back, these heart doctors office visits run 250 to 350 dollars per visit. Medicare will pick up 80%, my old HMO used to pick up the rest. Still got to figure out the co pays and such. :shades:

[forddaughter]

Forddaughter...What state do you live in?

 

 

Ohio

[longball]

If you live in ohio ....I don't believe you will get a 50% co-pay on doctors visits....you are either mistaken or trying to stir up s&%t.

[Stone Cold]

I found out that our new prescription coverage,has dropped covering more drugs for allergies. They won't cover my Fexofenadine 180 tab(generic for Allegra 180 tab).Talked to UAW local benefits rep. and he told me we should,pretty much, be thankful for what we have.Thanks alot that really makes me feel better!

[forddaughter]

If you live in ohio ....I don't believe you will get a 50% co-pay on doctors visits....you are either mistaken or trying to stir up s&%t.

 

 

We are PPO it says 50% in the book we got.

 

Another retiree went to the Dr. Monday and didn't have to pay anything.

[longball]

Please forgive...I stand corrected on the PPO....my mistake...our card states both TCN and PPO

[jam]

We are PPO it says 50% in the book we got.

 

Another retiree went to the Dr. Monday and didn't have to pay anything.

 

I too live in Ohio and went to the union meeting on heathcare. There are no PPOs or HMOs offered in Ohio. We only have traditional BCBS. We pay 100% office visits. They told us they are trying to get an HMO or PPO. Kaiser Permanente will have an open enrollment this month, you can use them but only if you live in certain zip codes.

They also told us when we go to the doctor to pay nothing, the provider will bill BCBS and BCBS will sent you a copy of "Your explanation of benifits", at the botom of the explanation of benifits you will see...Amount Billed and the Allowed amount. You will also get a bill from your provider, You pay the amount allowed. The amount allowed is what BCBS negotiated with the provider, ( it's suppose to be discounted) and the provider will except that amount.

[longball]

Jam...Does your card say PPO on the bottom left?

[forddaughter]

Sounds like everyone might have different coverage??? Best to look at your card and your booklet that came in the mail.

[fordworker]

I too live in Ohio and went to the union meeting on heathcare. There are no PPOs or HMOs offered in Ohio. We only have traditional BCBS. We pay 100% office visits. They told us they are trying to get an HMO or PPO. Kaiser Permanente will have an open enrollment this month, you can use them but only if you live in certain zip codes.

They also told us when we go to the doctor to pay nothing, the provider will bill BCBS and BCBS will sent you a copy of "Your explanation of benifits", at the botom of the explanation of benifits you will see...Amount Billed and the Allowed amount. You will also get a bill from your provider, You pay the amount allowed. The amount allowed is what BCBS negotiated with the provider, ( it's suppose to be discounted) and the provider will except that amount.

ohio's HMO raised the premium 80% so they dropped the hmo..... thats what u get with insurance companied who know the Ford /GM VEBAs are funded.. thet raised there price to try to cash in on our VEBA....

all u who dont want natl healthcare pay that 100% office visit with a fcking smile on your face....

[forddaughter]

So I went to the Dr. last night and every which way the office girl entered it, it came back no copay. We shall see. They had had some other retirees in there earlier and no copay came up. If I end up getting a bill then fine, but it shouldn't be a full one.

[jam]

So I went to the Dr. last night and every which way the office girl entered it, it came back no copay. We shall see. They had had some other retirees in there earlier and no copay came up. If I end up getting a bill then fine, but it shouldn't be a full one.

 

 

forddaughter that's right you do not have a co-pay.... you pay 100%

[longball]

Jam...does your card say ppo on the bottom left corner?

[longball]

Jam... you don't have a card do you.....your not a retiree from Ohio are you....shame on you

[forddaughter]

Until everyone gets on the same page there will be confusion. Drug Mart wanted to charge $120 tonight for an antibiotic had to explain three times no see the new card? It ended up being $10.00. They called the insurance company directly.

[jam]

Jam...Does your card say PPO on the bottom left?

 

longball, my card says supermed ppo on the left side and traditional care network on the right. Medical Mutual of Ohio top left side. Its got a contract No. enrollee name And a group No. all on the left. UAW Retiree Medical Benefits Trust , First Health Network and Medco on the right. Does this help?

Edited January 8, 2010 by jam