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AOL Chair blames 2 sick babies for benefits slash

 
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tatee View Drop Down
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    Posted: Feb 06 2014 at 6:22pm

AOL Chairman Slashes 401K Benefits, Blames Two Women Who Gave Birth To Sick Babies

By Igor Volsky on February 6, 2014 at 4:18 pm


Tim Armstrong

CREDIT: AP

AOL Chairman and CEO Tim Armstrong blamed the babies of two employees for increasing the company’s benefit costs on Thursday, explaining in a conference call that AOL had to pay millions out in medical bills and alter its entire benefits package. The remarks came just hours after the company announced changes to its 401(k) plans and complained that Obamacare has increased costs by $7.1 million.

“We had two AOL-ers that had distressed babies that were born that we paid a million dollars each to make sure those babies were OK in general,” Armstrong said. “And those are the things that add up into our benefits cost. So when we had the final decision about what benefits to cut because of the increased healthcare costs, we made the decision, and I made the decision, to basically change the 401(k) plan.” Under the new program, AOL employees will not be able to collect any matching funds toward their retirement savings from the company for any given year if they leave before Dec. 31 of that year.

But health care experts ThinkProgress contacted questioned why a large self-insured company with more than 5,000 employees could not absorb the additional health care costs associated with the pregnancies. Large employers typically purchase reinsurance, which could cover a substantial share of big claims and ensure stability in cases of larger-than expected medical payouts.

“The Affordable Care Act is simply a convenient whipping boy for any decision an employer makes to cut benefits,” Tim Jost, a law professor at Washington and Lee, said. “Assuming AOL had reasonably generous coverage like most large employers, it should not have experienced any significant changes in its benefit structure for 2014. Perhaps it had to pick up a few more employees that had not been covered before or reduce premiums for a few employees, but it is hard to see $7.1 million here.”

Meanwhile, the company is also hurting from poor business decisions. As the Washington Post reports, its quarterly earnings “were hurt by $13.2 million in costs associated with layoffs, including at Patch, the struggling local news venture recently sold to investment firm Hale Global. The Patch unit, championed by Armstrong, has lost an estimated $200 million.”

AOL’s total revenue beat expectations and increased $679 million in the fourth quarter. In 2012, Armstrong earned 12.1 million.

http://thinkprogress.org/health/2014/02/06/3262101/aol-chairman-benefits-baby/

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GG View Drop Down
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Post Options Post Options   Thanks (1) Thanks(1)   Quote GG Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 6:58pm
Doesn't make sense. He just wanted to cut costs and ensure he was ok at the end of the day.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote Fraiche2Death Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 7:16pm
Bitch ass.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote HowardAlumAKA Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 7:39pm
Oh wow, I didn't realize they were still around
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bindy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bindy Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 7:50pm
lol It looks like they cancelled their dental plan as well.

Edited by bindy - Feb 06 2014 at 7:51pm
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Post Options Post Options   Thanks (1) Thanks(1)   Quote Miss SDY Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 7:55pm
That bitch ass.

All that just to make sure his ass is good.

You would think with all that he did that his teeth wouldn't be looking like something off the Predator.

Besides, who is checking for AOL anyway?
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Post Options Post Options   Thanks (1) Thanks(1)   Quote melikey Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 8:11pm
7.1 million is nothing on a company of this size's scale. 
CVS just rejected 2Billion in revenue by dropping cigarettes from its stores. 
i know companies that make 40Billion from selling 1 product. 
he is using that paltry sum to explain his failure in leading that company out of the gutter. 
and isn't doing a good job of it. 

and while he mentioned the 2 babies, did he mention the thousands of employees that paid for insurance they didn't use? for a man who runs a major corporation he surely has not grasped how insurance works. the goal is to increase healthy employee enrollment, and encourage healthy behaviors so that costs go down. idiot.


Edited by melikey - Feb 06 2014 at 8:12pm
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Post Options Post Options   Thanks (1) Thanks(1)   Quote jonesable Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 8:12pm
I hate his face
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Post Options Post Options   Thanks (0) Thanks(0)   Quote CLCNY20 Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 8:41pm
That's why he look like that sh*t on the wall behind him.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote StylingArabella Quote  Post ReplyReply Direct Link To This Post Posted: Feb 06 2014 at 8:56pm
CLCNY20!!!!!  I forgot what I was gonna post because your avi is too scary Cry.
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