Contact Us

Two Major Companies Switch to Health Insurance Allowance — Dollars and Sense

sears olive garden
Olive Garden / Mario Tama, Getty Images

Last week, Sears and Darden Restaurants (Olive Garden, Red Lobster) announced that they were seriously entertaining the idea of doing away with their traditional health insurance programs and opting instead to provide their employees with a heath-coverage allowance.

The two major American companies plan to allow employees to select coverage through an online marketplace, where workers will have the opportunity to browse and purchase various employer-backed health plans.

Company officials say they hope that their plan will help lower insurance premiums, or at bare minimum, keep them from continuing to increase, by forcing health insurance companies to fight for their business.

According to human resources and consulting firm Aon Hewitt, employees will be able to choose from five different, multilevel health plans from five different insurance companies, which will allow employees to not only see the actual costs of various plans, but also make them proactive in deciding what plan works best for them and their families.

While the amount of the health insurance allowance has not yet been made known, Darden Restaurants says it plans to announce the implementation of this select-your-own-insurance plan to its employees as early as November.

Darden Restaurants adds that employees will still provide out-of-pocket contributions to their plans the same as they have in the past and receive relatively the same amount of coverage.

[Consumerist]

More from 96.5 KVKI

Best of the Web

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://965kvki.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on 96.5 KVKI quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Sign up for an account to comment, share your thoughts, and earn points to get great prizes.

Register on 96.5 KVKI quickly by logging in with your Facebook account. It's just as secure, and no password to remember!