The parent company of bankrupt American Airlines has sought court permission to reduce retiree health benefits and add out-of-pocket costs for access to certain coverage, Reuters reported on Friday. AMR Corp. said that it would discontinue retiree life insurance and would end medical coverage for those over 65. That group would, instead, have access to a Medicare supplement at their own cost. Retirees under 65 would still have access to company plans, but at their own expense as well, according to the company. AMR asked a bankruptcy judge to declare that it has the right to alter company-funded retiree benefits because they were never vested. American's retiree health plans cover more than 40,000 people.
