Citing costs, IBM to move 110,000 retirees off health plan

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. Read more >>

Only 15 States Opt to Run Obamacare Exchanges

Only 15 states have told the federal government they plan to operate health insurance exchanges under President Barack Obama's reform law, leaving Washington with the daunting task of creating online marketplaces for two-thirds of the country.

On the eve of a federal deadline for states to say whether they will run their own exchanges, a top health care policy official told lawmakers that the exchanges will start enrolling eligible families starting on Oct. 1.

"I am confident that states and the federal government will be ready in 10 months, when consumers in all states can begin to apply," Gary Cohen, director of the Center for Consumer Information and Insurance Oversight, told a House panel. Read more >>