If you are over 65, officially retired, but perhaps still working a few hours a week at a Raley’s supermarket, then you may be in for a bit of a shock. It seems that the company has decided to stop paying for health coverage. The changes apply to its hourly rated workers, although if you are over 65 this is the likeliest group to work such hours.

It won’t happen immediately apparently. Instead it comes into effect in July 2012. So presumably, it gives older workers a chance to sort something out before then.

The news was sent to employees via a letter. The chairman of the company said: “Unfortunately, due to the economic downturn and increased competition we are struggling to sustain our business. We have … determined that [the company] can no longer cover the cost of this benefit.”

While the company declined to give an official statement to the press, Jerry Landers, its senior director of human resources said: “We are continuing to provide generous medical coverage for our retirees under the age of 65, which is the most expensive time for individuals to purchase their own plans.”

However, the news has not been welcomed by retirees, one of whom said: “I know retirees are going to be distraught by this. They’ve got to be.”

Health insurance costs for both individuals and businesses alike have rocketed in the US and elsewhere. At the same time, incomes have either stagnated or in some cases fallen behind. Further, the US federal government is expecting everyone in the US regardless of their circumstances (including pre-existing conditions) to have some form of health insurance coverage by 2014.

This news will obviously be grasped by those opposed to the current system of health care in the USA, as being inadequate to support American citizens, particularly those who have now retired.

Whatever the failings of the NHS in Britain, many people opposed to the current changes will no  doubt use the US situation (including the supermarket’s cut backs) as evidence that older people are better looked after in by the NHS in Britain than in the US and possibly elsewhere.

The cut by the US business hasn’t come as any surprise to many who work for the company. The employee handbook apparently says that the company reserves the right to withdraw its health insurance coverage at any time.

They appear to exercising that right for older workers and retirees. The question is: will they stop there?