Cost increases under our current retirement group health care plan are no longer sustainable for you…health care costs under IBM's current plan options for Medicare eligible retirees will nearly triple by 2020, significantly impacting your premium and out of pocket costs.Those who are 65 or older, or disabled, will be asked to select a plan offered through the private Medicare insurance exchange Extend Health.
IBM to Eliminate Retiree Health Plan
IBM plans to eliminate its company-sponsored health plan for retirees eligible for Medicare, according to The Wall Street Journal. In its place, Big Blue will provide annual contributions to a health-related retirement account, which retirees would draw from to pay for supplemental Medicare via an insurance exchange. The move is expected to save IBM money by eliminating the need to directly cover rising insurance premiums in favor of a set annual payment for plan participants. According to documents sent to retirees and reviewed by the Journal, the company said: