Retired Nurses Lose Medigap Benefits They Were Promised After Hospital Sale
- Hundreds of retired nurses at Beacon Kalamazoo may lose Medigap reimbursement benefits beginning January 1, 2026.
- The benefit change followed the hospital’s sale and separation from the Ascension health system.
- Ascension retained responsibility for the Medigap program, while Beacon Health System did not assume the benefit.
- The Michigan Nurses Association is advocating for retirees affected by the change.
Hundreds of retired nurses from Beacon Kalamazoo, formerly Ascension Borgess Hospital, are facing the loss of their Medigap reimbursement benefits beginning January 1, 2026. The change follows the sale of the hospital and its separation from the Ascension health system.
According to the Michigan Nurses Association, the decision affects hundreds of retired nurses, many of whom worked at the hospital for decades. The Medigap reimbursement helped offset healthcare costs not covered by Medicare, including copays, deductibles, and other out-of-pocket expenses.
Judy Harris, a retired nurse who worked at Borgess Hospital for 27 years, told local media sources that she began receiving a monthly Medigap reimbursement of $167 after retiring more than 20 years ago. Harris said she believed the benefit would continue throughout her retirement. She is now among those preparing to lose the reimbursement when the policy ends.
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Medigap Reimbursement Changes After Sale
The Medigap reimbursement change was communicated to retirees in a letter sent earlier in 2025, informing them that the benefit would end after the hospital’s transition from Ascension Borgess to Beacon Kalamazoo. Reports indicate that Ascension retained responsibility for the Medigap reimbursement plan under the sale, while Beacon has said it did not assume that retiree benefit as part of the acquisition and has directed questions back to Ascension.
Local coverage and union statements focus on Ascension’s notice to retirees about the termination, and note that retirees and advocates have said they have not received additional public clarification from Ascension beyond the initial notice.
Union Response and Community Action
The Michigan Nurses Association has raised concerns about the impact of the decision on retired nurses. The union has placed signs near the hospital property calling attention to the issue and has urged both health systems to address the loss of benefits.
In a statement released by the union, Linn Crutcher, RN, 76, who worked at the hospital for 38 years, described the personal impact of the benefit loss. “I gave 38 years to the hospital, taking care of other families, sometimes leaving sick babies at home to go to work,” Crutcher said. “I feel I’ve earned this benefit. Taking away this healthcare coverage is a financial burden that many of us seniors will have a hard time absorbing. It was just a punch in the gut that I was not expecting at all,” she said.
Union leaders have emphasized that the affected nurses planned their retirements based on the expectation that the Medigap reimbursement would continue. The organization continues to advocate for a resolution that would preserve support for retirees.
Impact on Retired Nurses
For retired nurses on fixed incomes, the loss of Medigap reimbursement may increase healthcare expenses. Medigap plans are commonly used by Medicare beneficiaries to help cover costs not paid by traditional Medicare coverage.
As healthcare costs continue to rise, retirees impacted by the change are assessing their financial options and seeking clarification regarding responsibility for the discontinued benefit.
Broader Implications for Healthcare Workers
Hospital mergers, acquisitions, and ownership changes have become increasingly common across the healthcare industry. Such transitions can affect employee and retiree benefits, depending on how agreements are structured.
Labor and retiree advocacy groups have noted that benefit changes tied to ownership transitions can have long-term financial implications for former employees, particularly retirees who no longer have access to employer-sponsored healthcare options.
As the January 2026 deadline approaches, retired nurses, union representatives, and healthcare leaders continue discussions regarding the Medigap reimbursement program and its future.
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