Big Firms Revamp Health Coverage

Big Firms Overhall Health Coverage  by Anna Wilde Mathews.  The Wall Street Journal.  September 27, 2012.

Key Ideas/Summary.  In what may be a trend, two large firms are giving employees a fixed sum of money and allowing them to choose their medical coverage and insurance from an online marketplace.  The two firms, Darden Restaurants Inc. (Olive Garden, Red Lobster) and Sears Holdings Corp. aim to increase employee control of health benefits.  A concern for employees may be that the money provided may not be sufficient and adequate to keep up with premium inflation though the companies assert that the amount provided will increase with premium inflation.   The hope is that increased competition for employee dollars will lower overall health cost.  Overall , U.S. employers and workers are estimated to spend over $15,000 a year on medical insurance premiums.