Retiree Medical Supplemental- Obamacare, Refundable?

[Boomer]

No. Your retiree medical coverage did not drop from $500,000 to $50,000. As a matter of fact, thanks to the health insurance reform legislation there are no limits whatsoever effective with the renewal date of your policy.

Health Care Reform

Veritas,

Nothing I've read states that retiree medical coverage independant of Medicare/Medicade is covered by the obamacare plan. Instead, from the reading I've done, the lifetime medical maximum exclusion is for current employees with the retirees being forced to accept government "exchanges" that have yet to be created.

The entire concept of required coverage through government mandate is being litigated: whether or not universal coverage can be imposed by the federal government is still a legal question.

AA even states in their termination letter that the effective date is DEC. 31 2013 or when the health insurance exchanges open, whichever occurs later.

The question that arises is if failure to file a timely greivance over the issue could be construed by the TWU and/or AA a time limits bar to Arbitration.

 

[Veritas]

Veritas,

Nothing I've read states that retiree medical coverage independant of Medicare/Medicade is covered by the obamacare plan. Instead, from the reading I've done, the lifetime medical maximum exclusion is for current employees with the retirees being forced to accept government "exchanges" that have yet to be created.

The entire concept of required coverage through government mandate is being litigated: whether or not universal coverage can be imposed by the federal government is still a legal question.

AA even states in their termination letter that the effective date is DEC. 31 2013 or when the health insurance exchanges open, whichever occurs later.

The question that arises is if failure to file a timely greivance over the issue could be construed by the TWU and/or AA a time limits bar to Arbitration.

Did you read the site that I linked above?

Here is another site:

National Business Coalition on Health

“Essential health benefits”: PPACA (Patient Protection and Affordable Care Act) prohibits annual limits on the dollar value of benefits generally, but allows “restricted annual limits” with respect to “essential health benefits” as defined by the statute up to 2014. The statute also provides that a plan or insurance issuer may impose annual or lifetime per-individual dollar limits on covered benefits that are not essential health benefits. The IFR defines “essential health benefits” by referencing the statutory definition and “any applicable regulations.” The IFR preamble explains, however, that such regulations have not been issued yet, and for purposes of enforcement, the agencies will take into account “good faith efforts to comply with a reasonable interpretation” of the term. The IFR adopts a three-year phased approach for restricted annual limits for “essential health benefits”:

• $750,000 for plan or policy years beginning on or after September 23, 2010, but before September 23, 2011
• $1.25 million for plan or policy years beginning on or after September 23, 2011, but before September 23, 2012
• $2 million for plan or policy years beginning on or after September 23, 2012, but before September 23, 2014

The actual governmental regulations are here.

A summary of PPACA interim final regulations on pre-existing condition exclusions, annual & lifetime limits, rescissions, choice of providers and emergency services is here (PDF).

Annual and lifetime limits will be history by September 23, 2014 on all health insurance plans available in the United States. It make no difference whether those are for current or retired employees.

 

[Barfbag]

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.......

Most likely this person is either working for the US Government,, a government subsidized monopoly, government contractor, such as a municipal transit, or a millitary supplier.

So you the tax payer pay for his/her's subsidiszed insurance too.

What fools we are for working for private transportation, where the consumer can reduce your benefits by lowering the price of his air fare ticket.

 

[eolesen]

Was Supp Med really required like Prefunding? I didn't think it was mandatory, but was just a matter of not being made available again if you didn't opt in X years before your earliest possible retirement date.

Also don't overlook the fact that the Supp Med policy was/is there for you. Just because you didn't use it doesn't mean you get your money back. Otherwise, I'd be demanding a refund on the homeowners insurance and extra mold policy I've never used on my past three houses....

If the company and the union represented something to me as a benefit and I paid it through a negotiated reduction in my take home pay: we have a contract.

If the company and the union now wish to change the terms and conditions of that contract without my consent: someone, other than me, needs to open up their checkbook to cover the $450,000.00 of coverage I am losing.

Sucks to be you, but the company didn't lobby to have your contract superseded by Federal law. Not sure if your union did directly or indirectly thru the AFL-CIO.

Maybe you should call up your union brothers and sisters over at the SEIU, who essentially forced healthcare reform on us without thinking thru all the ramifications, and complain.

When I got my refund of Prefunding after leaving AA, it included interest on the contributions I'd made. I'd assume the same for other refunds made for programs made obsolete under Federal mandate.


Also, given how much continues to come out about what really is/isn't in the health care "reform", I still wouldn't rule out repeal, either in whole or in part.

 

[Bob Owens]

Was Supp Med really required like Prefunding? I didn't think it was mandatory, but was just a matter of not being made available again if you didn't opt in X years before your earliest possible retirement date.

Also don't overlook the fact that the Supp Med policy was/is there for you. Just because you didn't use it doesn't mean you get your money back. Otherwise, I'd be demanding a refund on the homeowners insurance and extra mold policy I've never used on my past three houses....



Sucks to be you, but the company didn't lobby to have your contract superseded by Federal law. Not sure if your union did directly or indirectly thru the AFL-CIO.


When I got my refund of Prefunding after leaving AA, it included interest on the contributions I'd made. I'd assume the same for other refunds made for programs made obsolete under Federal mandate.

As Boomer and I said before, most who purchased this insurance bought it for the retiree aspect of the coverage, they paid into it for years because they were told they had to buy it now and could not wait till later, unlike your Home Insurance. Unlike your Home Insurance AA, their employer, was running this scam. Sad but obviously they were wrong to trust their employer.

While there was additional coverage only one person has ever exceeded the $5 million lifetime cap, more than likely he/she is dead now. People were not buying the supplimental to raise their lifetime cap to $8 million, they were buying it for retirement. Now the company after selling it as retirement insurance and collecting premiums has decided to walk away from that committment and pocket the $78 million from the plan, all of which came from contributions and investment earnings on those contributions. Keeping those contributions is just wrong, they should refund those who paid into it till now. At the very least they could have an actuary figure out the value of the extra $3 million to the lifetime cap vs the value of the $500,000 retirement cap. With only one person in over 10 years going over the $5 million lefetime cap and probably hundreds, if not more, exceeding the $50k cap on prefunding I think that the formula would place the majority of the value of the plan for the subscriber on the retiree part.

As far as getting back your prefunding, you only got back the half you put in,and half the interest, the company kept the half they put in, and the interest and you lost all the benifit. They screwed you. Prefunding was put in place as a replacement of fully company paid retiree health. What they did would be no different than if we switched to a 401K match then 20 years from now the company telling us "we no longer want to manage or match the 401K so we will refund what you put in, plus the interest on your contributions but we are keeping the match and the interest earned on it". So despite your years of service you will get no pension from the company.