Microsoft Stops Covering All Healthcare Costs For Employees

steve ballmer

Photo: AP

Soaring healthcare costs are causing Microsoft to scale back its generous employee healthcare program.The company told its employees today that they would have to start paying for some of their healthcare benefits in 2013, TechFlash reports.

Microsoft is one of the few companies that covered 100% of its employees healthcare.

But, healthcare costs have grown in the last 10 years. It’s not projected to change anytime soon, so Microsoft is moving to save some money.

Todd Bishop at TechFlash has a fabulous explanation of what’s happening at Microsoft from an insurance expert:

Microsoft’s health-care benefits have been traditionally “very rich” compared with those offered by most corporations, Hanson said. He likened the forthcoming contribution requirement to telling people who get free Jaguars that they’re going to need to start paying for part of the car’s air conditioning.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at