Skip to comments.Citing costs, IBM to move retirees off health plan
Posted on 09/07/2013 7:49:24 AM PDT by lowbridge
International Business Machines Corp. plans to move about 110,000 retirees off its company-sponsored health plan and instead give them a payment to buy coverage on a health-insurance exchange, in a sign that even big, well-capitalized employers aren't likely to keep providing the once-common benefits as medical costs continue to rise.
The move, which will affect all IBM retirees once they become eligible for Medicare, will relieve the technology company of the responsibility of managing retirement health-care benefits. IBM said the growing cost of care makes its current plan unsustainable without big premium increases.
IBM's shift is an indication that health-insurance marketplaces, similar to the public exchanges proposed under President Barack Obama's health-care overhaul, will play a bigger role as companies move coverage down the path taken by many pensions, paying employees and retirees a fixed sum to manage their own care.
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You want to know why there is age discrimination....Health care costs are a big reason....Decouple medical insurance from employment, and I suspect a lot of age discrimination also goes away.
Also offshoring, a company doesn’t have to worry about paying medical insurance for Sanjay in Mumbai.
Would a number of Seniors over that age die? Well, yes. But an unintended consequence just might be that people take better care of themselves and many actually live longer.
...off the company health plan.
Study the history of medicine thru history of the world. Because we have cellphones, iPods, etc etc does not mean we are incapable of reverting back to the past. In the past we had free markets, we had gov control, etc etc etc. The medical industry began by catering to the rich because they were the only ones capable of paying for the best science has to offer. Go overseas and look at emerging and third world nations as well as the past of human history. Even in the Soviet Union, the people on top had the best and everyone else settle for less because they were not rich and powerful. That always been the nature of medicine (doctors, pharma and etc). The other cost in private medicine is insurance companies must spend up to 1/3 on advertising to get people to buy their product over the other guys. That is a lot of money spent on PR and not medicine. If we want medicine at reasonable cost to meet moral obligations to those who are truly needy without burdening us with high taxes and premiums, the movtivation to be in medicine must change from profit to service. In some sense the churches are probably better equipped to do this. Imagine instead of a person entering as priest or pastor to preach, but choose to serve God via learning medicine and healing/caring for the sick. Preachers and priests do not earn huge salaries, but rather get free room and board, a modest salary but motivated by service over money. Question is how does one create such a service motivation that is available in theology and transfer it to medicine? The US military is one of the few institutions that do that, but once the doctor gets their free education and meet minimum service obligations, many leave to pursue lucrative private practice.
IBM’s decision has everything to do with ObamaCare.
Obamacare mandated new insurance coverages that are increasing the premiums. Corporations cannot and should not be obligated to pay for 26 year old’s who are not insuring themselves, but one example.
the rich can afford it good, if money represents work, risk, stewardship, I mean what is the point of money, good, if the rich want to purchase medical “procedures”.
I am all for it
If a Dr became a physician to “get rich” he is not a good doctor. If he became a doctor to treat and heal the sick he is a good doctor.
Received my ‘Dear John’ several days ago. Have to see what the additional expense will be Oct 1st.
Nice going Obama
That is what retirees get for voting for Democrats.
WOW! This is friggin’ HUGE!
Ha ha ha. That depends on what meaning of keep is.
Received my Dear John several days ago. Have to see what the additional expense will be Oct 1st.
The deluge is beginning. Once one large US corporation dumps their healthcare costs on gov and reaps savings, their competitors have no choice but to keep up their competitive edge by reducing costs also, unless they made so much money that they can afford to compete with ACA cost burdens.
You can keep the plan but you can’t use it. Just keep it. It can be used as a historical document for a future Ken Burns documentary on how the civil war effected health care.
Hold on to that plan. Don’t lose it. Hold it tight.
“Never got mine. First I heard of this change was in todays WSJ online.”
Received mine last Thursday. On Oct 1st they ‘Extended Health’, will have a list of supplementary health, dental and vision plans from which to choose.
Why on every talk show??? BECAUSE EVERYONE CAN RELATE TO IBM.....it's a business icon......and it might start dawning on this country's low-information morons that they're next if they're employed by a private corporation or big company as most folks are.
We don't need the NFL woes on your Monday show, Rush, we need the AHCA....and how the tyrant expects everyone to survive after 30 million illegals, some very skilled, educated and trainable, grab all the few open jobs when amnesty is crammed down our throats.
You betcha. My employer switched carriers last year, saving us all some ching, and has cut all but Managers to 29 hours or less per week. We Managers get to do OUR jobs plus those cut hours, too! (I’m not complaining. I love my job!)
However, I’m wondering what goes away next? He’s spittin’ mad about 0bama being re-elected, let alone elected the first time. Says if he could legally do it, he’d fire anyone that voted for 0bama.
I LIKE that guy! :)
Why would someone with Medicare want to be on an exchange?Couple 66 years old would have premium $1,200/month. Full blown plan F Medicare supplement "F" would be about $300/month plus part "D". "F" Coverage; $0 out of pocket, $0 deductible and a wide choice of doctors and hospitals.