In a bid to offer its employees more affordable health plans, Starbucks said it plans to cut certain benefits and offer less comprehensive insurance options, reports Los Angeles Times.
Starbucks CEO Howard Schultz said Monday the company will begin offering employees low-cost, less-comprehensive insurance plans in addition to more substantial coverage plans. The company has yet to specify which services it will discontinue.
In a letter to employees, Mr. Schultz said the company is evolving its benefits program so workers have the freedom to shop, compare and choose health coverage that best suits their needs, according to the article. "The new healthcare options allow partners to only pay for the coverage they want and will actually use," said Mr. Schultz, according to Los Angeles Times.
U.S. employers have increasingly offered high-deductible, low premium health plans as a way reduce healthcare costs. In 2016, about 72 percent of employers offered HDHP options, according to PwC.