IBM Eliminates Co-payments On Employee Health Plans
In an era in which employers increasingly are having to shift more health-care costs onto employees, IBM is taking the unprecedented tack of opting to pick up all expenses related to primary care for U.S.-based employees, beginning next year. In doing so, IBM is is among the first U.S. companies to cover primary care at 100%, the Armonk, N.Y.-based computing giant said Thursday.
The move means employees will not be subject to co-pays or deductibles for in-network primary care with their internist, general or family practitioner, pediatrician or primary osteopath. IBM said it was able to boost coverage due to the company’s success in implementing wellness programs, an effort begun five years ago.
“As a result of our focus on wellness and primary care, IBM employees have become healthier and our costs are rising more slowly,” said Randy MacDonald, senior vice president of human resources in a statement. The new benefit will apply to all IBM-self insured medical plans, which include PPO, PPO Plus and EPO options and currently cover about 80% of all U.S.-based employees, Big Blue said.
A self-insured plan is one in which health costs are borne by the employer, with an insurance company acting as an administrator. IBM noted that other employees participate in HMO plans, which typically provide most, but not all, preventive and primary services at low or no cost.
Employees will still contribute a share of premium costs, IBM said.
IBM also said it’s introducing a new wellness incentive “to encourage changes in lifestyle to build energy, better health and vitality” through the implementation of rebates of $150, one of five such incentives IBM offers U.S.-based workers. Employees who participate in initiatives, which promote mental, physical and emotional well-being, receive the rebates upon completion of select programs.
Employees can chose any two rebates to receive up to $300 in cash a year, IBM said.