IBM moving some retirees off its health plan

2:27 PM, Sep 7, 2013   |    comments
(Photo: Katye Martens, USA TODAY)
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IBM plans to move many retired workers off its health plan and give them money to buy coverage on a health-insurance exchange. The move is part of a corporate trend away from providing traditional retiree health benefits as costs rise.

The company says it acted after projections showed that costs under its current plan for Medicare-eligible retirees will triple by 2020 and that the increases would be paid by retirees through premiums and out-of-pocket costs.

An IBM spokesman says the change will affect about 110,000 retirees who are eligible for Medicare.

Under the change, IBM will make annual contributions to health-retirement accounts. Retirees would use the money to buy Medicare Advantage or supplemental Medigap policies through a private Medicare exchange.

The change affects medical, prescription drug, dental and vision coverage.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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