By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Corporations Shifting Retirees to Health Exchanges: Is That Bad?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > Corporations Shifting Retirees to Health Exchanges: Is That Bad?
BusinessHealth Reform

Corporations Shifting Retirees to Health Exchanges: Is That Bad?

Liz Seegert
Liz Seegert
Share
2 Min Read
Health Care Costs and retirees
SHARE

Recent news about several large corporations — including GE, IBM, and Time Warner — shifting retiree health benefits into new private health insurance exchanges has many wondering about the future of their own benefits.

Recent news about several large corporations — including GE, IBM, and Time Warner — shifting retiree health benefits into new private health insurance exchanges has many wondering about the future of their own benefits.

Health Care Costs and retirees

The companies say they just can’t afford to keep the status quo in the face of rising premiums and a projected wave of new beneficiaries over the next few years. However, by moving retirees into health insurance exchanges, they can better control costs while offering workers more choice.

More Read

The impact of US healthcare spending
The Impact of US Healthcare Spending [INFOGRAPHIC]
Increase SEO Backlinks with Current Events
Population Health Management: Revolutionizing Health Care Service Delivery
The Medical Device Sales Tax Suspension Could Be a Huge Opportunity – Don’t Let it Go to Waste
Should Physicians Profile Our Patients?

Analysts say that younger, healthier retirees could reap cost benefits by opting for lower-premium plans – although copays would be higher. However, older retirees, many of whom are frequent users of health care, won’t not fare as well if they wind up on the hook for more out-of-pocket costs.

It really depends on what was covered under existing corporate plans and how that coverage compares with the offerings in local health exchanges. In theory, individuals will have more options to pick a plan better suited to their needs. The corporations will contribute a set amount to an employee’s health account, leaving them free to choose the plan that best fits their individual needs rather than the current “one size fits all” formula. Competition among participating plans will help control costs.

Many analysts think that Big Blue’s strategy is will benefit its retired workforce. This piece from CBS This Morning gives a pretty clear explanation of what this move means.

It’s much too early to see whether this new strategy works for either employer or retiree. If it does, experts believe that the traditional system of corporate-sponsored retiree health coverage — and perhaps for current employees as well — will go the way of nickel subway rides and 25 cents a gallon gas.

TAGGED:ACAbenefitshealth exchangeshealth insurance exchanges
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025
sports concussions
Concussion In Sports: How Common They Are And What You Need To Know
Infographics
September 28, 2025

You Might also Like

Image
FinancePolicy & LawSpecialties

Two Pills, $200,000, Can We Afford it?

June 24, 2013

What is Your Health System’s Marketing Philosophy?

April 16, 2012

Myth Busters #5: Hospital Rate Setting

August 16, 2011
ahaapcd
BusinessFinanceHospital Administration

The All-Payer Claims Database: What You Need to Know

January 14, 2015
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?