Increases in prescription drug prices are cited as a major contributing factor as well as cutting back on benefits, which included drug coverage, by Medicare health maintenance organizations. Many medium-sized companies are no longer offering retiree health care coverage to new employees, and small companies rarely pay these benefits.
See "Companies Trim Health Benefits for Many Retirees as Costs Surge", MILT FREUDENHEIM, The New York Times, May 9, 2002