Media and entertainment company Time Warner Inc. (TWX) plans to move its retired workers off its health plan and provide money to them to purchase coverage on private exchanges at the beginning of next year.
Company spokesman Keith Cocozza confirmed the plan Sunday.
The move, which was earlier reported by Reuters, is similar to a change confirmed by IBM (IBM) on Saturday.
Both companies plan to allocate money to special accounts for retirees, which they can use in purchasing coverage.Such moves are meant to lower costs and are part of a corporate trend away from providing traditional retiree health benefits as costs rise.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts