In recent years, companies have reduced what they offer for retiree health benefits, eliminated them, or reduced their contributions toward these benefits. Why? Solution It has been truly said that in recent years ,companies have reduced retiree health benefits ,eliminated them or reduced their contribution toward these benefits because of rising cost of coverage. after the downturn of economy ,employers found themselves in a deliemma as to whether to offer coverage and in what form. many employers has instituted an array of incremental cost -savings approaches so as to determine whether offering of coverage results in incremental benefit to organisation (association of employees with comapny) and up to what extent.. .