Time Warner Joins IBM in Retiree Health Switch

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.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More from Life Insurance

How to Protect Yourself and Your Family From Long-Term Care Insurance Scams

How to Protect Yourself and Your Family From Long-Term Care Insurance Scams

Why Property & Casualty Insurance Should Not Be Optional

Why Property & Casualty Insurance Should Not Be Optional

Seven Common Financial Regrets You Want to Avoid

Seven Common Financial Regrets You Want to Avoid

Could Walmart Be the One to Disrupt Healthcare?

Could Walmart Be the One to Disrupt Healthcare?

Why Going to Urgent Care Is Better Than the ER

Why Going to Urgent Care Is Better Than the ER