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.
(Excerpt) Read more at foxnews.com ...
But, but Obama promised we could keep our plans.
Will only get worse. I doubt Congress cares though. They got their waiver and we get to pay for their healthcare.
But Osama Obama & Pals needn’t worry.They’ve made sure that *they’re* exempt.
My mother is 84 and living on her 50% of an IBM pension with just SS as a kicker... Dads insurance money is long gone... he would have been mortified to think of his wife on Medicaid...
His ‘plan’ was to tell us our ‘plan’ would stay the same. Meanwhile the real ‘plan’ was to destroy this country with impossible debt
Yep..., it was all an act.
After the rich can economically self insure against many risks and the gov't employees get a free ride.
After all the rich can economically self insure against many risks and the gov't employees get a free ride.
There is a lesson to be learned here. Before ACA healthcare cost was out of control. Drug companies did not care, hospitals did not care, insurance companies did not care, doctors did not care, BUT the Democrats cared. Americans voted for them in 2008 and 2012. Result is an even larger diseaster. I think the GOP would do a better job, but telling everyone leave it to free markets (medicine does not work that way) was no answer. If you are in pain and dying and the drug company says you need this pill twice a day for the rest of your life at $ 25 bucks a pill, you will be hard pressed to say no like other commodities. Same with hospitals and doctors. You want to live, gimme $ 100,000 for treatment, hospital stay and doctors’ fees. To keep a person alive and treated, we are talking about chemicals, skills and knowledge. None are rare and hard to attain, only the holder and owner of it is trying to make a profit and living off of it. If abused, doctors can be a small elite with its ancillary industries (pharma, hospitals, devices etc etc) cater to the upper and well to do and still make a lucrative living from it. Just look at history where doctors cater only to those who could pay (ala royal family, rich merchants and landowners, while the poor relied on charity and churches). The rich had the best science can offer and the rest got average. That always been the norm till recent history.
I don’t think this has anything to do with ObamaCare. These companies simply can’t stay in business if they are paying exorbitant medical insurance bills for people who are no longer productive (or even unproductive) employees of the firm.
This will snowball. Bet on it!!!
Sorry to inform you but your diagram has 3 incorrect connections and 9 that are missing. ;)
It has everything to do with Obama care. Companies are being shielded from the consequences of their earlier bad decisions and represents a breach of trust between them and the employees they agreed to provide insurance for.
there you go with that “norm” business
“norms” are bullshit
Do not fall into the “norm” trap set by obama
“norms” float and evolve and change and cannot be relied on
I’ve been expecting my company to do the same. They went high deductible after 4 years ago - not holding my breath it’ll be around at all for more than a couple more.
“But, but Obama promised we could keep our plans.”
And that it would be cheaper, and drive DOWN healthcare costs!
And, you could even have your own Unicorn!!!
But, IBM must be racist, and hate the idea of a black man as President, right?
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