Retiree Medical Supplemental- Obamacare, Refundable?

[Boomer]

The recently signed Obamacare Policy outlaws restrictions on maximum health insurance payments, denial of coverage for pre-existing conditions and termination of coverage for health insurance claims by covered participants.

I've paid for supplemental health insurance coverage since I was eligible and used other health insurance coverages to prevent encroachment on the lifetime maximums: what does Obamacare do to those premiums?

Due to a possible change in the law; does AA owe me a refund on all supplemental health insurance payments, or, must AA stop all deductions for those payments until the matter is decided with the mandate that the coverage is maintained?

 

[BoeingBoy]

Due to a possible change in the law; does AA owe me a refund on all supplemental health insurance payments, or, must AA stop all deductions for those payments until the matter is decided with the mandate that the coverage is maintained?

Just my opinion, but I think things will be in limbo for a little while. I know that US sent out a letter to employees saying basically that. Add in that not everything takes effect immediately, and we'll all be waiting with bated breath for a full explanation of the changes. Having said that, I suspect that any changes won't be retroactive so what you've paid for supplemental coverage will be gone. I think of it like any insurance - you can pay for insurance for years but if you don't use it you don't get your premiums back. You paid for supplemental insurance in case you needed it, but not needing it anymore probably won't get you a dime back.

Jim

 

[Bob Owens]

Just my opinion, but I think things will be in limbo for a little while. I know that US sent out a letter to employees saying basically that. Add in that not everything takes effect immediately, and we'll all be waiting with bated breath for a full explanation of the changes. Having said that, I suspect that any changes won't be retroactive so what you've paid for supplemental coverage will be gone. I think of it like any insurance - you can pay for insurance for years but if you don't use it you don't get your premiums back. You paid for supplemental insurance in case you needed it, but not needing it anymore probably won't get you a dime back.

Jim

I agree with Jim, because they will argue that the premiums that you paid were used to pay those who did collect. Now that the law makes such coverage redundant it means you will no longer have to pay for the coverage, that will be considered your savings.

 

[eolesen]

I really don't think anyone knows yet. There are court challenges already filed (and probably more to come as people finally see the final last approved amended copy of the bill).

Plus, November 2010 isn't that far away. Given the number of Democrats who announced their retirements or intent not to run for re-election during the last three months, I can't say that repeal is out of the question.

If AA starts refunding Supp Med, prefunding, etc, can you imagine the chaos if there's a repeal in the next three years?...

Maybe there's an opportunity for the unions to insist on putting those pre-payments into escrow until reform is actually implemented...

 

[KCKKen]

When I left AA it was refunded, although I don't think there was any interest included from all the time they kept it.

It's sure nice (now) to work for an employer that actually values me as a human being -- all insurance is paid for by the company, company-sponsored wellness screenings yearly, company tools and vehicle, minimum 4-hour call-in for emergencies, time-and-a-half for Saturdays, double-time on Sundays, paid lunch, excellent retirement benefits -- sure beats the airline industry.......

 

[aamechntx]

Where do you work?

 

[Bob Owens]

Where do you work?

Obviously not for the airlines anymore.

Brundage needs a reality check and we need to give it to him

 

[Bob Owens]

Currently my health benifits cost me $2.26/hr, thats for less coverage than I used to get as part of my paycheck.

 

[jimntx]

I don't know about other employees, but health benefits are contractual for the flight attendants, thank goodness. The company can not arbitrarily change or cancel coverage as they did with the non-represented retirees not long ago. As E said, I don't think anyone actually knows what effect the new law will have on existing coverage. It will depend on what kind of coverage each company already has. From what KCKKen posted, I would imagine his company will see no difference whatsoever.

Rumor: I have heard (from someone in management that I trust) that there is a move afoot from the company to do away with retiree medical benefits altogether. This would be accomplished by giving people the choice of a refund of their prefunding money, or they can retire immediately and get the retiree medical. But then, we know what happened to others who were already in the program, but had no contractual protections.

I'm quite certain that AMR will not use the new law as an opportunity to do something for employees. (Cynical? Moi? How could you say such a thing? <_< )

 

[Veritas]

When I left AA it was refunded, although I don't think there was any interest included from all the time they kept it.

It is refunded if you you leave AA younger than fifty or if you leave after your fiftieth birthday and fail to continually pre-fund between that time and your actual retirement with benefits after turning fifty-five.

 

[KCKKen]

Where do you work?

Kansas City, Kansas Board of Public Utilities. Left AA @ 28.20/hr, joined BPU at 28.87/hr -- with a lot shorter commute and all the perks I listed.

And you're right, I left at just past 48 so I got it all back. But I'm sure they made a little off of keeping it for the time I was there.

 

[TWU informer]

I don't want my premiums paid back.
I don't want ObamaCare

I want to retire early and have decent medical coverage.

Add up how much you have paid in and tell me the refund would be worth a dime compared to the value of the coverage.

 

[jimntx]

Unfortunately, I think what you are going to get is a payback of your premiums with, according to KCKKen, no interest accrual for the time they had free use of your money.

 

[BoeingBoy]

AA;s medical coverage must be different than US'. We had no supplemental coverage unless we purchased it independently, so I assumce (yes, I know what they say about that) that AA was the same. If AA has supplemental coverage prepaid through the company my initial response was completely wrong. It was based on a pay-as-you-go policy purchases as an individual.
Jim

 

[Boomer]

The TWU/AA retiree medical is two parts: the first part is the pre-funding of retiree medical health insurance taken from an employees check each pay period over the life of the employees' career, subject to lifetime medical maxumums; the second part is the extension of the medical lifetime maximum for employee, active and retiree, medical health insurance that increases the medical lifetime maximums based on the age of the employee at the time that coverage was initiated, the supplemental health insurance.

I was covered by the basic retiree medical through the prefunding mechanism; I chose to increase the lifetime maximum by beginning to pay supplemental premiums at the same time I became eligible for prefunding the basic retiree health plan.

The 50-55 rule at AMR allows those reaching age 50 with 15 years creditable service to leave AMR but continue paying their prefunding and the supplemental untill age 55 at which time they become retirees with:
1) retiree medical; and,
2) the supplemental, which increases their lifetime maximums; and
3) the pension(reduced by 3% for each year earlier than age 60 or 15%); and
4) retiree flight benefits.
The catch is that the supplemental has to be continued to be paid each month throughout the period from 50-55 and thereafter.

AMR self-funds employee and retiree health insurance, they pay outside organizations to administer claims: if the policy of limiting the maximum payout for health insurance, both active and retiree, is now illegal; does AMR get a windfall for the years of premiums paid for something they now are legally barred from doing?