International Business Machines Corp. (IBM), faced with rising health care costs for retirees, says it will move them to a health exchange where they may have cheaper plan options.
The move affects about 110,000 Medicare-eligible retirees, Doug Shelton, an IBM spokesman, said by telephone. The company has chosen the Extend Health exchange by Towers Watson, the country’s largest private Medicare exchange, to provide more options for prescription drug, dental and vision care, the Armonk, New York-based company said in a statement e-mailed today.
International Business Machines Corp.’s move is the latest in a string of large changes that organizations have made to counter rising health costs. Photographer: Scott Eells/Bloomberg
IBM’s move is the latest in a string of large changes that organizations have made to counter rising health costs. In August, United Parcel Service Inc. (UPS) decided to drop health benefits for 15,000 of its workers’ spouses, while Michigan Governor Rick Snyder tried to reduce costs by moving municipal retirees to exchanges.
“This transition provides more choice and flexibility at equal or better costs to our retirees,” IBM said in the statement. “While some retirees may be skeptical today, studies show that the majority of people who are presented the concept of an exchange are skeptical at first, but once they understand the options available to them through these exchanges, they have a more positive outlook.”
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