Dive Brief:
- Hot on the heels of announcing it would boost its hourly wage for most workers, Starbucks' next move is expanding healthcare coverage for all of its eligible full and part-time employees (20 hours per week minimum) via private exchange.
- In a company statement, the global coffee purveyor says its new benefits platform is designed and delivered by Aon and will offer employees up to six national and regional healthcare insurance carriers and five coverage levels.
- Calling its private exchange "unique," the company also said it will continue to fund approximately 70% of premium costs and cover 100% of preventive care services for employees. It added that eligible individual U.S. employees could save up to $800 annually, with savings for families potentially reaching $2,600 annually.
Dive Insight:
Starbucks' latest benefits move, which follows a similar but unconnected design of public exchanges created by the Affordable Care Act, gives employees a credit/subsidy which they use to purchase a plan via an online portal (see healthcare.gov for an example).
“Much like a travel site, our partners will be able to navigate an easy to use online platform to choose between more insurance carriers and coverage levels at more competitive prices to help them find the right plan for their own needs,” Ron Crawford, Starbucks vice president of global benefits, said in the Starbucks announcement.
Private exchanges are an emerging trend among employers, with pros and cons. Other large consultancies, including Mercer and Willis Towers Watson, offer private exchanges. Seems that Starbucks is doubling down on its efforts to attract and retain talent, based on the latest series of benefits-directed announcements including free college tuition.