Sears and Darden Restaurants are switching from providing theiremployees with health coverage to giving them money to purchasehealth insurance themselves from an online exchange, according tothe Wall Street Journal.

Both companies are using an exchange organized by Aon Hewitt.Both companies have been self-insured. Neither would say exactlyhow much money it will give each employee to purchase healthinsurance, but Darden said employees will pay out of their ownpockets about the same amount they do now for about the same levelof coverage.

The move resembles the switch from defined-benefit pensions todefined-contribution 401(k) plans. And the companies hope thatinsurers' competition on the exchanges to win employees' businesswill help drive down the cost of coverage.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.