NEW YORK, Sept 8 Time Warner Inc is
planning to transfer its U.S. retirees from company-sponsored
health plans and move them to private insurance exchanges.
According to an August memo obtained by Reuters, the media
company will make allocations to a Health Reimbursement
Arrangement account for retirees to use towards the purchase of
coverage on an exchange. Previously, Time Warner provided an
indirect subsidy through a supplementary Medicare program.
The shift "will ultimately be beneficial for all retirees by
providing more choice of coverage ... for, in many cases, a
lower cost," read the memo, which was written by James Cummings,
the company's senior vice president of global compensation and
The change in coverage will take effect on Jan. 1, 2014.
Time Warner is not the only company to take such steps as a
result of the government's healthcare reform laws. International
Business Machines Corp on Friday announced a similar
plan, which it said was a way to lower costs for retirees.