IBM retirees being shifted to heath insurance exchange
September 8 , 2013
IBM retirees will not be on the company's health plan beginning the first day of the new year.
The retirees will be provided with an annual payment, which they will use to pick their own plan from a Medicare exchange called Exchange Health.
This situation is similar to the public exchanges of ObamaCare. Wallstreet reported that this concept is a sign that even the big employers are less likely to continue providing these common benefits.
The company said this is being done to prevent the unmanageable rise of premiums under the current system.
The multiple insurers are expected to offer good plans that would keep the costs down.
Companies such as DuPont and Caterpillar have opted to do the same for its retirees. Moreover, there are companies such as Sears that have even made the switch to exchanges for its current employees.