Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

9/9/2013 (1 year ago)

Catholic Online (www.catholic.org)

Company cites rising healthcare costs as reason.

Obamacare is supposed to make insurance affordable for many people, but it's just not happening. For 110,000 IBM retirees, they're about to join the Obamacare market. Citing the rising cost of healthcare, IBM has said it will move the retirees to the private market, and off their current plans with the company.

IBM is moving 110,000 retirees to an insurance exchange to save money.

IBM is moving 110,000 retirees to an insurance exchange to save money.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

9/9/2013 (1 year ago)

Published in Politics & Policy

Keywords: IBM, healthcare, Obamacare, costs, insurance, 110, 000, coverage, Medicare


LOS ANGELES, CA (Catholic Online) - Citing the rising costs of healthcare, IBM says it will now move 110,000 retirees off of its company healthcare plan to an insurance exchange. The company says without large premium increases, the company cannot afford the rising costs of providing healthcare for retirees.

Now, when retirees become eligible for Medicare, they will be required to move to that system. IBM will still provide an annual payment to facilitate their move. Those payments will be less than the cost of providing coverage under the preexisting plan.

This will also make employees responsible for their own care, under the Medicare or Obamacare systems. Money from IBM will help them to cover gaps in Medicare coverage by purchasing additional coverage on their own.

The latest move by IBM isn't particularly rare as companies seek to insulate them from cost increases and compulsory coverage forced by Obamacare. Since individuals can now obtain insurance on their own, many are being left to do so. The era where employers provide the healthcare may be drawing to a close.

Low-paid employees who work for small hourly wages have already been hit hard by the coming of Obamacare. Many workers have seen their hours cut which directly affects the size of their paychecks. Some are now working part-time and multiple jobs, just to earn what they earned before and so they can afford to pay for their own healthcare starting in 2014.

Although these same low-wage earners also have subsidies from Obamacare, their healthcare comes at a cost few can afford. It is projected that many Americans will simply pay the penalty tax rather than pay even more for healthcare coverage under Obamacare.

The situation is a difficult one. We have a rising attitude in business that directors must maximize shareholder profits, that this is their fiduciary responsibility, and if they accomplish this there will be generous payouts to CEOs and others at the top. There is then an attitude that praises financial earnings over the well-being of the employees who are largely left to fend for themselves.

This is happening at a time when education is becoming unaffordable and the degrees students are earning are becoming less useful. The nation is seeing a rise in prosperity for the wealthy and a general decline for the masses.

This is a bad recipe because it removes moral responsibility from the employer, who treats people as disposable resources and as engines for profit. People become things -numbers on a spreadsheet as opposed to humans.

The future portends a time of upheaval where either an overreaching government steps in to provide people with basic needs, such as healthcare, or the people demand change via dramatic shifts in national policy. Only in the short term then, is the reckless pursuit of corporate profits sustainable.

IBM cannot be blamed for casting off its retirees amid a climate of government interference and skyrocketing costs. Nor can we expect other corporations and employers to break their banks for their employees. However, a new balance must be found. People have basic needs that must be met. Unfortunately, between government interference and corporate greed out of control, individual finances, for both retirees and the poor, will be stretched to breaking. When that happens, expect change to come not by election, but by hammer.


Watch Catholic Online's most viral videos here!

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for February 2015
General Intention:
That prisoners, especially the young, may be able to rebuild lives of dignity.
Missionary Intention: That married people who are separated may find welcome and support in the Christian community.



Comments


More Politics & Policy

BANNING BULLETS: Obama to use executive action to ban ammo for popular hunting rifle Watch

Image of The inexpensive 5.56 M855 ammo, commonly called

By Catholic Online (NEWS CONSORTIUM)

Banning all firearms across the United States would take a massive effort, and certainly not many Americans would willingly give up their protection. According to a memo, U.S. President Barack Obama intends to use his executive powers to ban the bullets for the ... continue reading


Abercrombie & Fitch's 'looks policy' under fire for stark employee discrimination of Muslim girl Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Abercrombie & Fitch faces yet another lawsuit for potential discrimination. The hip clothing store has previously been under fire for lack of racial diversity in both employment and advertisement and for limited sizing choices. LOS ANGELES, CA (Catholic Online) - ... continue reading


SHOCKING REPORT: Social Security card in hand, illegal immigrants can claim back tax benefits Watch

Image of Lawmakers have expressed distress that amnestied illegal immigrants could be potentially rewarded for illegal work.

By Catholic Online (NEWS CONSORTIUM)

Workers living and employed here illegally appear to be on a fast track to join the American dream. According to a Congressional Research Service, or CRS, memo, those illegal immigrants able to obtain Social Security Numbers and work permits due to President ... continue reading


NOT SO FAST! Net neutrality to get onceover before approval Watch

Image of Democrat Mignon Clyburn on the Federal Communications Commission wants to narrow the scope of new net neutrality rules set for a vote later this week.

By Catholic Online (NEWS CONSORTIUM)

The hotly debated "Net Neutrality" - which will determine how the 21st Century's preferred mode of communication and information - is not a sure thing, just yet. Democrat Mignon Clyburn on the Federal Communications Commission wants to narrow the scope of new ... continue reading


Democrats can dish it out - but are now shying away from Obamacare penalties Watch

Image of As those taxpayers discover the penalty they owe, they will already be racking up a new, higher penalty for 2015.

By Catholic Online (NEWS CONSORTIUM)

It looks like Democrats can dish it out, but can't take it. One of the stipulations of health care reform, or "Obamacare" was those who chose not to enroll had to pay a penalty come tax time. Now, as millions begin to file their taxes, Democrats are having ... continue reading


Human Tide: Texas' porous border allows thousands to flood in from Mexico Watch

Image of Speaking out on CBS's

By Catholic Online (NEWS CONSORTIUM)

Porous borders - one where demarcations are hazy and ill-defined, allowing people to cross over into another country without proper accounting, was one of the reasons for the Ebola crisis in East Africa. There exists a similar situation between the United ... continue reading


'Terror threat' from American right-wing extremists discussed at summit Watch

Image of The mastermind behind the Alfred P. Murrah building bombing attack, Timothy James

By Catholic Online (NEWS CONSORTIUM)

Domestic terrorism in the United States has long been an ongoing concern. The White House held a "Countering Violent Extremism" summit last week to talk about "extremist ideologies that radicalize." The summit did not address radical Islam in particular, but ... continue reading


Is Obama corrupt? Contracts for amnesty being pushed at 'full-throttle pace' by Department of Homeland Security Watch

Image of The population of potential requesters for the president's deferred action will be

By Catholic Online (NEWS CONSORTIUM)

Despite a federal court's decision to halt President Obama's amnesty order, the White House continues to award multi-million-dollar contracts to firms to process millions of illegal immigrants. LOS ANGELES, CA (Catholic Online) - The population of potential ... continue reading


Blackwell and Morrison: Obama's ISIS Policy - Above US Only Sky Watch

Image of With the murders this week of twenty-one Coptic Christians on the beach in Libya, the world has seen an example of the cruelty and barbarism. The Obama administration regularly denies it has anything to do with Islam.

By Ken Blackwell and Bob Morrison

With the murders this week of twenty-one Coptic Christians on the beach in Libya, the world has seen an example of the cruelty and barbarism. The Obama administration regularly denies it has anything to do with Islam. Islam must change. The world cannot survive ... continue reading


Ron Paul issues dire warning: Secession is happening Watch

Image of

By Abigail James (NEWS CONSORTIUM)

The time is here, the United States' may soon be no more. According to former Republican presidential candidate and congressman, Ron Paul, the states will stop listening to federal laws. LOS ANGELES, CA (Catholic Online) - "I would like to start off by talking about ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Deuteronomy 26:16-19
16 'Yahweh your God commands you today to observe ... Read More

Psalm, Psalms 119:1-2, 4-5, 7-8
1 How blessed are those whose way is blameless, who ... Read More

Gospel, Matthew 5:43-48
43 'You have heard how it was said, You will love ... Read More

Saint of the Day

Saint of the Day for February 28th, 2015 Image

St. Hilary, Pope
February 28: Pope from 461-468 and guardian of Church unity. He was born in ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter