Summaries of health policy coverage from major news organizations
Ford Selling Stock To Pay Part of VEBA Obligation
Ford Motor on Monday said it will sell as many as 300 million shares of its own stock in order to pay its 2009 obligation to a retiree health care fund operated by United Auto Workers, the Detroit Free Press reports. Ford and the union reached an agreement in March that allowed the auto firm to use stock to partially fund the UAW voluntary employees' beneficiary association, which will pay for the health care costs of retirees and their spouses starting next year. Monday's announcement means that much of the 2009 payment will be in cash. Ford owes $1.85 billion to the VEBA this year, according to a quarterly report filed Friday. Its stock closed Monday at $6.08 per share, which means 300 million shares would yield about $1.82 billion. Some of the proceeds from the sale will be used for general corporate purposes, according to the automaker (Snavely, Detroit Free Press, 5/11).
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