The retirees will be moved to the Extend Health exchange by Towers Watson, an which will offer retirees additional options for prescription drug, dental and vision care. IBM is moving the retirees to the new exchange to avoid rising rising health costs. The company claims that with its current health plans, retirees health cost would triple by 2020. IBM says that the new exchange will give its retirees a larger pool of beneficiaries, which will lower risk and reduce cost. The company claims that the switch won’t save IBM any money. The company has been holding meetings with its retirees to talk about the switch, reports Bloomberg.
IBM will make annual payments to retirees to allow them to purchase their own healthcare. The exchange that the retirees are being moved to is similar to ones that President Obama proposed during his health-care overhaul.
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