Citing Costs, IBM to Move Retirees Off Health Plan

[Duaine]

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.


Read more: Citing costs, IBM to move retirees off health plan | Fox News

 

[AllenChicago]

Whirlpool Corp. cancelled my Dad's (and all other retirees) health insurance 6 years ago. Whirlpool increased his retirement pay by $350 a month and told him to call the "Extend Health" brokerage to sign up with the Whirlpool retirees plan. The article Duaine linked to says that Extend Health is now a Private Exchange. Must be a smart marketing gimmick to keep pace with the times.

Anyway, the plan worked like a MedSupp with a $12,000 Deductible and 100% after that. My Dad didn't sign up for it because he was on Medicare and my Mom's BCBS retired teachers group plan. But Whirlpool continued (and continues) to pay him the higher pension. It Looks like IBM won't be that generous. The article says that if the retiree doesn't enroll at Extend Health, they get no $$$ (subsidy) from the company.

 

[JimmyUt]

Whirlpool Corp. cancelled my Dad's (and all other retirees) health insurance 6 years ago. Whirlpool increased his retirement pay by $350 a month and told him to call the "Extend Health" brokerage to sign up with the Whirlpool retirees plan. The article Duaine linked to says that Extend Health is now a Private Exchange. Must be a smart marketing gimmick to keep pace with the times.

Anyway, the plan worked like a MedSupp with a $12,000 Deductible and 100% after that. My Dad didn't sign up for it because he was on Medicare and my Mom's BCBS retired teachers group plan. But Whirlpool continued (and continues) to pay him the higher pension. It Looks like IBM won't be that generous. The article says that if the retiree doesn't enroll at Extend Health, they get no $$$ (subsidy) from the company.

Extend health does this for a lot of big employer retiree groups across the country. They have a call center here and hire hundreds of agents each year for AEP and beyond. Too bad they don't pay anything.

 

[TonyC]

IBM lost their arses when Intel developed the micro-processing chip. They still service Servers and still have income but its not what it was in the heyday.

So basically looks like IBM retires will be shopping for Medicare Plans.

 

[AllenChicago]

So basically looks like IBM retires will be shopping for Medicare Plans.

You can add General Electric and Time Warner to this growing list.
Story: GE, IBM Ending Retiree Health Plans in Historic Shift - Businessweek

Why are analysts calling this shift to Private Exchanges a "Tax Payer Burden", if companies are giving the retirees money to buy a plan? It's annoying when the people who write these articles make bold statements without explaining themselves.

ac

 

[houcoogster]

You can add General Electric and Time Warner to this growing list.
Story: GE, IBM Ending Retiree Health Plans in Historic Shift - Businessweek

Why are analysts calling this shift to Private Exchanges a "Tax Payer Burden", if companies are giving the retirees money to buy a plan? It's annoying when the people who write these articles make bold statements without explaining themselves.

ac

I think they are talking about retirees under 65. They could qualify for subsidies.

 

[JDM396]

IBM lost their arses when Intel developed the micro-processing chip. They still service Servers and still have income but its not what it was in the heyday.

So basically looks like IBM retires will be shopping for Medicare Plans.

Actually, FWIW they have been making money hand over fist for years. They learned a long time ago that margins in support are MUCH greater than hardware. They gross twice what they did in their "heyday" and have significantly better margins.

Back to your regularly scheduled thread.