General Motors’ decision to eliminate retiree health benefits for salaried workers is the latest sign pointing to rising out-of-pocket health care expense for most retirees. The struggling automaker plans to cut medical coverage that many use to supplement gaps in Medicare insurance, substituting increased cash pension payouts; unionized workers aren’t affected.

The rising cost of retiree health poses a serious threat to the financial security of older Americans. Two studies released earlier this year pegged out-of-pocket health expenses during the retirement years at well over $200,000 for most people. Reductions in retiree health benefits certainly aren’t new, but cutbacks most often involve higher premiums or reduced benefits. GM’s move to eliminate coverage altogether signals that reduction of these benefits is accelerating. Protect yourself by planning for these expenses, saving as much as you can–and try to stay employed as long as you can.

Tags | , health care, health insurance, Medicare