LUS Retirement Healthcare Question - PBGC

usa1

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Oct 6, 2008
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I know everything is changing next year. But would our current Pre-65 Medical Insurance for Legacy US Airways qualify for the PGBC Health Coverage Tax Credit

 
PBGC

Do you need help paying for health insurance? The Health Coverage Tax Credit may be for you. (Pays 72%)

You can significantly reduce your health insurance premiums for you and your family with the HCTC. It’s important you act quickly to find out if you can receive this federal tax credit.

How do I become eligible?

The HCTC is available to people receiving pension payments from the Pension Benefit Guaranty Corporation (PBGC) and their families. To qualify, you must:

1. Begin receiving pension payments from the PBGC and be 55 years old or older.
2. Keep or obtain a qualified health plan. The most common types include:

•COBRA – You must pay more than 50% of your monthly premium.

•State-qualified health plans – Health plans certified by a state’s Department of Insurance as meeting certain requirements.

•Coverage through your spouse’s employer

Under the HCTC, the individual can either claim a tax credit at the end of the year equal to 72.5% of the premium paid for their coverage or apply for a 72.5% monthly subsidy of their premium payable directly by the IRS to the COBRA administrator or insurance issuer. Under the prior legislation, affected individuals commonly applied for the subsidy and paid their 27.5% of premium to the IRS. The IRS then disbursed 100% of the premium to the COBRA administrator or insurance issuer.
 
http://www.ebcflex.com/Menu/Resources/ComplianceBuzz/tabid/1140/ArticleID/257/Health-Care-Tax-Credit-HCTC-Program-Restored.aspx

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Pre-65 Medical for Legacy US Airways Retirement Ins 
Legacy US Airways employees represented by APFA, CWA-IBT, IAM and TWU


In 2015, you can choose between three Pre-65 Retiree medical options: The PPO 80, PPO 90 and PPO 100 options. This coverage is the same type of coverage that is offered to most active US Airways employee workgroups, except that you pay the full cost of this coverage. You are eligible to continue the coverage until the end of the month preceding the month in which you reach age 65. Medicare eligibility begins on the first day of the month in which you turn 65. You and your eligible spouse can remain in the PPO Medical Plan until you turn 65. You and your eligible dependents can elect the PPO Medical Plan even if you were not previously covered in a US Airways medical plan as an active employee. You may enroll in the PPO Medical Plan by completing the Retirement Notification Form located on Wings. (Remember, your Manager must sign this form before sending it in.) Please note that if you elect to waive this plan at retirement you will not be able to enroll at a later date, including any future annual enrollment periods).
 
http://my.aa.com/en/2015-retiree-benefits
 
 
If this is where Doug is taking us it looks like you could retire, stay in the company plan and have 72 % of it covered by the Health Coverage Tax Credit. 
 
Again the question is will Pre-65 Medical Insurance qualify for the PGBC Health Coverage Tax Credit?
 
Pre-65 Medical for Legacy US Airways Retirement Ins
Legacy US Airways employees represented by APFA, CWA-IBT, IAM and TWU

Contribution Costs

Monthly contribution costs for Retiree Standard Medical option:

Retiree Standard 2015 Contributions
Employee Only $1,042.00
Employee + 1 $2,084.00
Employee + 2 or more $3,126.00
 
 
I would not trust any answer you got on here.  I suggest going to the PBGC or IRS for the answer.  One problem you have is the definition of a qualified plan.  For instance, I am past 65 and have Medicare Part A only because American's group insurance is a qualified plan therefore I do not have to sign up for Parts B, C, and or D yet.
 
How do I know it's a qualified plan?  AA sends me a letter each year stating that the AA Medical insurance is a qualified plan under Federal standards.  By qualified, they mean that AA's group insurance provides as good or better coverage than Medicare.
 
And, you can't translate that qualification into a qualification for the insurance you have.  The PBGC probably has totally different standards for determining if a policy is qualified..
 
I would start with determining whether or not the pre-65 Insurance meets the standard for being a qualified plan.  From what you have posted, it sounds like a pursuit well worth making.  A tax credit for the premiums you pay?  Go for it.  If it provides the same benefits available to full-time employees, I would say yes it's qualified, but what do I know?  I'm a flight attendant. I'm paid to be cute, not smart.   :lol:
 
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usa1 said:
The Pre-65 Medical for Legacy US Airways Retirement directs you to the OneExchange website.
 
Towers Watson Announces OneExchange, a Health Benefit Solution for Full- and Part-Time Employees, and Pre-65 and Medicare Retirees
 
http://benefitslink.com/pr/detail.php?id=47470
 
 
Additional OneExchange solutions will be triggered by final regulations and ACA health plan product offerings, as well as Towers Watson’s continued efforts to drive innovation in the delivery of health care benefits. New solutions will:
  • Connect challenging workforce segments such as pre-65 retirees and part-time, contract or seasonal workers to plans offered on public exchanges
  • Provide financial analysis, modeling tools and consulting to help employers decide whether to use private or public exchange solutions — and, if so, how they will deliver value for various segments of their populations
  • Enable employers to transition their full-time, active employees to exchanges offering individual health plans or group-based plans with features that engage participants in their health care decisions
  • Extend the BenefitView management dashboard to integrate analytics and reporting for all exchange solutions across all populations
Added Williams, “We expect the vast majority of employers to proceed thoughtfully in leveraging ACA and private and public exchanges. To help guide them, Towers Watson’s OneExchange offers a powerful combination of health care strategy and exchange solutions expertise — no matter which path they choose.”
 
I think "OneExchange" solutions is about to get very involved with all of us .. pre-65 retirees, active full time, part-time, contract, vendor or seasonal workers, they will make it easy for Doug. 
 
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If you are Eligible for a Federal Subsidy
If the plan you purchase through OneExchange is a State Marketplace plan, you may be eligible for a federal financial assistance (a subsidy) to help pay the cost of your coverage. OneExchange Benefit Advisors can assist you with determining whether you are eligible for a federal subsidy.
 
Benefit Advisors Can Help You

To help you decide which plan or plans are right for you, a certified and licensed benefit advisor from OneExchange will assist and advise you. He or she will help you compare, select and enroll in the plan(s) that fit your needs and budget.

Learn more about plans and available options by visiting the OneExchange website for American at www.OneExchange.com/american.
 
 
usa1 said:
I think "OneExchange" solutions is about to get very involved with all of us .. pre-65 retirees, active full time, part-time, contract, vendor or seasonal workers, they will make it easy for Doug. 
Would be interesting to know if this OneExchange group gives a kickback to AA for every employee/retiree that signs up with them, or if AA will provide any of the monthly premium.  (Just because I'm paranoid does not mean there isn't someone out to get me.  :lol:)
 
From what is posted here it sounds like an entry into the world of Obamacare as if one were someone with no company insurance like a Wal-Mart employee; so this is one of the insurance exchanges from which you can buy insurance with a government subsidy.  I don't care as long as someone picks up part/majority of the tab.  A friend of mine who works at Frontier has had her insurance premium go from $49/mo to almost $300/mo in just 2 years.
 
jimntx said:
Would be interesting to know if this OneExchange group gives a kickback to AA for every employee/retiree that signs up with them, or if AA will provide any of the monthly premium.  (Just because I'm paranoid does not mean there isn't someone out to get me.  :lol:)
 
From what is posted here it sounds like an entry into the world of Obamacare as if one were someone with no company insurance like a Wal-Mart employee; so this is one of the insurance exchanges from which you can buy insurance with a government subsidy.  I don't care as long as someone picks up part/majority of the tab.  A friend of mine who works at Frontier has had her insurance premium go from $49/mo to almost $300/mo in just 2 years.
 
 
http://www.wsj.com/articles/towers-watson-ceo-sold-stock-before-big-deal-1443052212
 
Does anyone know if the insurance we have now with AA is eligible  for the HCTC if you retired? 
 
As far as I know if we leave AA before turning 65 we get nothing but cobra for a short time.

Hopefully someone will say I'm wrong...