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?
You want to know why there is age discrimination....Health care costs are a big reason....Decouple medical insurance from employment, and I suspect a lot of age discrimination also goes away.
Also offshoring, a company doesn’t have to worry about paying medical insurance for Sanjay in Mumbai.
Would a number of Seniors over that age die? Well, yes. But an unintended consequence just might be that people take better care of themselves and many actually live longer.
...off the company health plan.
Study the history of medicine thru history of the world. Because we have cellphones, iPods, etc etc does not mean we are incapable of reverting back to the past. In the past we had free markets, we had gov control, etc etc etc. The medical industry began by catering to the rich because they were the only ones capable of paying for the best science has to offer. Go overseas and look at emerging and third world nations as well as the past of human history. Even in the Soviet Union, the people on top had the best and everyone else settle for less because they were not rich and powerful. That always been the nature of medicine (doctors, pharma and etc). The other cost in private medicine is insurance companies must spend up to 1/3 on advertising to get people to buy their product over the other guys. That is a lot of money spent on PR and not medicine. If we want medicine at reasonable cost to meet moral obligations to those who are truly needy without burdening us with high taxes and premiums, the movtivation to be in medicine must change from profit to service. In some sense the churches are probably better equipped to do this. Imagine instead of a person entering as priest or pastor to preach, but choose to serve God via learning medicine and healing/caring for the sick. Preachers and priests do not earn huge salaries, but rather get free room and board, a modest salary but motivated by service over money. Question is how does one create such a service motivation that is available in theology and transfer it to medicine? The US military is one of the few institutions that do that, but once the doctor gets their free education and meet minimum service obligations, many leave to pursue lucrative private practice.
IBM’s decision has everything to do with ObamaCare.
Obamacare mandated new insurance coverages that are increasing the premiums. Corporations cannot and should not be obligated to pay for 26 year old’s who are not insuring themselves, but one example.
the rich can afford it good, if money represents work, risk, stewardship, I mean what is the point of money, good, if the rich want to purchase medical “procedures”.
I am all for it
If a Dr became a physician to “get rich” he is not a good doctor. If he became a doctor to treat and heal the sick he is a good doctor.
Received my ‘Dear John’ several days ago. Have to see what the additional expense will be Oct 1st.
Nice going Obama
That is what retirees get for voting for Democrats.
WOW! This is friggin’ HUGE!
Ha ha ha. That depends on what meaning of keep is.
Received my Dear John several days ago. Have to see what the additional expense will be Oct 1st.
The deluge is beginning. Once one large US corporation dumps their healthcare costs on gov and reaps savings, their competitors have no choice but to keep up their competitive edge by reducing costs also, unless they made so much money that they can afford to compete with ACA cost burdens.
You can keep the plan but you can’t use it. Just keep it. It can be used as a historical document for a future Ken Burns documentary on how the civil war effected health care.
Hold on to that plan. Don’t lose it. Hold it tight.
“Never got mine. First I heard of this change was in todays WSJ online.”
Received mine last Thursday. On Oct 1st they ‘Extended Health’, will have a list of supplementary health, dental and vision plans from which to choose.
Why on every talk show??? BECAUSE EVERYONE CAN RELATE TO IBM.....it's a business icon......and it might start dawning on this country's low-information morons that they're next if they're employed by a private corporation or big company as most folks are.
We don't need the NFL woes on your Monday show, Rush, we need the AHCA....and how the tyrant expects everyone to survive after 30 million illegals, some very skilled, educated and trainable, grab all the few open jobs when amnesty is crammed down our throats.
You betcha. My employer switched carriers last year, saving us all some ching, and has cut all but Managers to 29 hours or less per week. We Managers get to do OUR jobs plus those cut hours, too! (I’m not complaining. I love my job!)
However, I’m wondering what goes away next? He’s spittin’ mad about 0bama being re-elected, let alone elected the first time. Says if he could legally do it, he’d fire anyone that voted for 0bama.
I LIKE that guy! :)
Why would someone with Medicare want to be on an exchange?Couple 66 years old would have premium $1,200/month. Full blown plan F Medicare supplement "F" would be about $300/month plus part "D". "F" Coverage; $0 out of pocket, $0 deductible and a wide choice of doctors and hospitals.
It’s a private Medicare Advantage/Supplement exchange, not an Obamacare exchange.
“That is what retirees get for voting for Democrats.”
A broad brush statement. This retiree never voted for any rat.
It will be the norm again.
Health is expensive, and there are not enough resources (machines, nurses, medicines, etc) to give everyone great care. Never has been (triage).
We have had an oddity of history where people think that someone else can pay for their very expensive health care. We are going back to the norm. Which means life expectancy will, not may, will, drop.
Because the new nobles will not want to pay for the rest of us much longer.
I don't know why you omitted the most crucial group who doesn't care: The patient with cadillac health insurance fully paid by their employer. "I don't care what it costs, I have insurance." This once-upon-a-time standard scenario is about to become extinct, precisely because patients didn't care about the costs.
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
In a truly free market, there would be viable competition to produce alternative pharmaceuticals, and drive down the cost of monopoly drugs. What we have instead is an FDA government regulation monstrosity, trial attorneys salivating for drug and medical supply side effects, and drug patents extended for decades by simply changing the shape of a pill.
Don’t mean to double ping you, but your comment about priests and pastors indicates you haven’t studied history.
We don’t have the good priests or pastors we had 100 years ago. For the simple reason is that the pay is bad, the hours long, and there are other more attractive options for an intelligent man to work at. There is an old pastor at my church who said he went into the line because it was the best work a man of his intelligence and station could get in to (not the money, but the prestige and calling). Most pastors now are not of his stature, and are quite frankly weak kneed ninnies scared to offend anyone or empire builders who are more concerned about selling the next new building than saving souls.
In short, when there became other options for educated but lower station men to do, they stopped going into the clergy.
If we continue the same path we have with doctors, there will be fewer of lower quality and skill. This is already happening. I personally know of three skilled doctors and surgeons who have quit rather than take the pay cut under Obama care. One was replaced with a nurse practitioner, the others have not been replaced (and are not likely to be).
There are very few people who will go into medicine (or the clergy) just to “Help” people.
The FDA/Pharma cycle is an incestuous loop.
IBM suggested that younger workers move to India. They would be paid less by the company but their dollars “would go farther”.
Anything to keep the upper wigs’ bonuses and golden parachutes.
Spoken like a true blue liberal.
“If you like your health care plan, you can keep your health care plan.” President Barack Obama, Aug. 11, 2009
When they want to pay turd world wages and same damn you for wanting to remain in the birth country of America, hell yes I say screw them.
I got a degree, they lie to Congress that there aren’t enough people in this country to do the work, then they pocket the difference.
Middle management is going abroad as well. So is simple legal work, financial work, graphic design.
It isn’t just the computer nerds who are up sh!t creek.
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