Economy

Eugene

(61,964 posts) Sat Sep 7, 2013, 01:19 PM Sep 2013

IBM to transfer U.S. retirees to healthcare exchanges next year

Source: Reuters

IBM to transfer U.S. retirees to healthcare exchanges next year

Sat Sep 7, 2013 3:13am BST

(Reuters) - IBM plans to move U.S. retirees off its company-sponsored health plan and shift them into new public insurance exchanges as a way of lowering costs.

IBM had selected Extend Health, which is owned by Towers Watson & Co, to provide retirees with new health options for medical, prescription drug, dental and vision coverage, the company said in a statement on Friday.

The plan, it said, offered IBM retirees more choice and better value than the company could provide through existing group plans.

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While some retirees may be skeptical, studies showed that the majority of people have a more positive outlook once they were presented with the concept and understood the options available to them through these exchanges, IBM said.

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6 replies

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IBM to transfer U.S. retirees to healthcare exchanges next year (Original Post) Eugene Sep 2013 OP

this is why we need single payer universal health care, not insurance mandates.... mike_c Sep 2013 #1

I don't understand how they can do this. enlightenment Sep 2013 #2

I believe Ford did this several spartan61 Sep 2013 #3

I understand that part. enlightenment Sep 2013 #4

I think they can go outside the "Extend Health" private exchange for a policy, but... antigop Sep 2013 #5

Seems like a boom for the exchanges DemReadingDU Sep 2013 #6

mike_c

(36,281 posts)

1. this is why we need single payer universal health care, not insurance mandates....

Reply to Eugene (Original post)

Sat Sep 7, 2013, 01:21 PM

Sep 2013

eom

enlightenment

(8,830 posts)

2. I don't understand how they can do this.

Reply to Eugene (Original post)

Sat Sep 7, 2013, 01:34 PM

Sep 2013

Can companies dump employees from their plans? Sure - they're doing it left and right.

But how can IBM simply tell retirees that they are going to have to use this "Extend Health" exchange - which is not a "public" state exchange at all.

spartan61

(2,091 posts)

3. I believe Ford did this several

Reply to enlightenment (Reply #2)

Sat Sep 7, 2013, 02:25 PM

Sep 2013

years ago. Some of my friends who retired from Ford Motor Company had their company's health insurance pulled and they were given an amount of money each month to purchase a health insurance supplement to their Medicare. It was up to the retiree to find a policy that worked best for themselves.

enlightenment

(8,830 posts)

4. I understand that part.

Reply to spartan61 (Reply #3)

Sat Sep 7, 2013, 03:12 PM

Sep 2013

I just don't see the link between this practice and the "public exchanges," since the company they are going to do business with is not part of that process.

antigop

(12,778 posts)

5. I think they can go outside the "Extend Health" private exchange for a policy, but...

Reply to enlightenment (Reply #2)

Sat Sep 7, 2013, 07:46 PM

Sep 2013

they won't get the IBM subsidy.

As I understand it, if you want the IBM subsidy, you have to get your Medigap policy through Extend Health.

DemReadingDU

(16,000 posts)

6. Seems like a boom for the exchanges

Reply to Eugene (Original post)

Sun Sep 8, 2013, 07:57 AM

Sep 2013

Wouldn't it be cheaper to do nothing. Just pay the penalty.

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