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The $5 billion subsidy in the healthcare reform legislation for companies that provide medical coverage to pre-65 retirees may prove the last hurrah for such benefits. Although the subsidy was intended to bolster companies’ coverage for earlier retirees until insurance exchanges begin in 2014, analysts say the $5 billion will run out in half that time. And a recent survey by HR consultancy Towers Watson shows many employers are moving away from providing retiree health benefits.

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