Bank of America Corp. is making major changes to its health care benefits, including giving employees up to $1,200 a year to spend on expenses not covered by insurance.
Beginning next year, the Charlotte-based bank will consolidate almost all of its health and insurance plans under Aetna Inc., replacing almost all of the dozen or so health care and insurance providers that currently cover roughly 150,000 employees.
"We wanted to create simplicity and efficiency for our associates," said Steele Alphin, Bank of America's chief administrative officer. "Under one national carrier, the bank is able to preserve existing programs and offer new and enhanced benefits."
As part of the change, Bank of America will put $600 to $1,200 every year into health care accounts for employees who earn less than $100,000. The accounts are in addition to the bank's annual contributions to employees' health care coverage and on top of flexible spending accounts, which allow workers to set aside pretax money on their own to cover medical expenses and dependent care costs.
The new bank-funded accounts can be used to pay for current health care expenses not covered by insurance, such as deductibles and co-pays, or rolled over from year-to-year and saved, even into retirement.
Other revamped benefits include boosting paid maternity, paternity and adoption leave to 12 weeks, offering additional money for child care, and adding to the reimbursement available for employees who enroll in job- and degree-related coursework.
The deal more than doubles Hartford, Conn.-based Aetna's membership with Bank of America, from 65,000 to roughly 150,000 participants.
"It's a model we'll try to replicate with other customers," said Aetna spokesman Fred Laberge. "It's not a 'one size fits all' environment. We work with each client to provide the services and benefits they're looking for."
Coverage for medical and dental care will grow to include coverage for leave of absence, disability, vision and group life, Laberge said. Aetna will not provide pharmacy coverage, which Bank of America will continue to offer through CVS Caremark Corp. and Kaiser Permanente. Kaiser will also continue to supply some medical coverage.
Laberge would not say where Bank of America ranks in size among Aetna's corporate customers.
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AP Business Writer Stephen Singer in Hartford, Conn., contributed to this story.
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On the Net:
Bank of America Corp.: http://www.bankofamerica.com
Aetna Inc.: http://www.aetna.com
Source: AP Features
