Starbucks Widens Workers’ Health-Insurance Options

via Wall Street Journal

Starbucks Corp. on Monday became one of the most high-profile employers to switch its employees to a private health insurance exchange.

Instead of the one health insurer and three medical coverage levels they have now, U.S. employees from Chief Executive Howard Schultz to store baristas working at least 20 hours a week will be able to choose from among up to six national and regional carriers, and five levels of medical plan starting in October.

In recent years, several large companies including Walgreen Co.,Sears Holdings Corp. and Darden Restaurants Inc. have moved employees onto private exchanges, which are essentially online marketplaces where employers can have their workers choose health plans.

But they haven’t caught on as quickly as insurers once expected. Consulting firm Accenture PLC had estimated that 40 million Americans would be getting insurance through private exchanges by 2020, but only about eight million people have done so.

Read the full article here

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Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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