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Thursday, September 19, 2013

More Companies Move Away From Traditional Health Plans

Walgreens is among a number of American companies that intend to shift employees from traditional company-based health plans to private exchanges. (time_anchor/Flickr)

Walgreens is among a number of American companies that intend to shift employees from traditional company-based health plans to private exchanges. (time_anchor/Flickr)

American companies including Walgreens, Sears Holdings Corporation and Darden Restaurants — the owner of Red Lobster, Olive Garden and Longhorn Steakhouse — have announced plans to shift employees from traditional company-based health plans to private exchanges.

Under the new structure, companies will provide employees with money to buy their own health insurance.

Companies say the new system will benefit employees by increasing their insurance options and choices.

Critics fear the company payments won’t keep pace with the rapid rise in medical costs. That, in turn, could mean skyrocketing insurance costs for employees.

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