Time Warner joins IBM in retiree health switch

2:55 PM, Sep 8, 2013   |    comments
UNITED STATES - FEBRUARY 04: Pedestrians walk past the headquarters of Time Warner Inc. in New York, U.S. on Wednesday, Feb. 4, 2009. Time Warner Inc., the world's largest media company, said earnings will be little changed this year as it spends about $250 million to cut jobs at its Warner Bros. film studio and AOL Internet unit. (Photo by Andrew Harrer/Bloomberg via Getty Images)
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Media and entertainment company Time Warner Inc. 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 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 2013 by The Associated Press. All Rights Reserved.)

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