ATT Cancels Retiree Health Plan

[serendipity]

How much of our original AT&T medical/dental suppliment is being redirected by AT&T for third party AON beneifits administration, rather then for use in actually purchasing medical & dental insurance? Seems like giving us a reasonable HRA for our use is preferable to the AON circus we are going through in 2014. If I simply picked Humana Walmart Part D drugs, coupled with Mutual of Omaha or AARP/UHC Medigap Plan F directly, I would be way ahead of the game without the AON Circus. A significant amount of monery is being spent on useless and incorrect information.

 

[belkat125]

How much of our original AT&T medical/dental suppliment is being redirected by AT&T for third party AON beneifits administration, rather then for use in actually purchasing medical & dental insurance? Seems like giving us a reasonable HRA for our use is preferable to the AON circus we are going through in 2014. If I simply picked Humana Walmart Part D drugs, coupled with Mutual of Omaha or AARP/UHC Medigap Plan F directly, I would be way ahead of the game without the AON Circus. A significant amount of monery is being spent on useless and incorrect information.

Excellent question. Another question is: why such a limited choice in plans from Aon?? Are they getting kickbacks from those they offer? Seems that, once you boil it down, there are just two or three companies total...just lots of plans within the companies. When you go to an independent insurance agent, they have access to plans galore.

 

[WCMason]

Excellent question. Another question is: why such a limited choice in plans from Aon?? Are they getting kickbacks from those they offer? Seems that, once you boil it down, there are just two or three companies total...just lots of plans within the companies. When you go to an independent insurance agent, they have access to plans galore.

ATT has an unusual deal compared to other retiree plans I've seen that involve exchanges. Usually you get no money unless everything is purchased through the exchange. My most recent interaction was with One Exchange. One of my seminar attendees told me he had to use them only for everything or get nothing, and they are only offering BCBS A, F, or HDF, or Humana C, F, and HDF. All higher than if he had other carrier or plan options. I've seen similar arrangements with Aon. I get why the employer wants to use a single agency to simply things for themselves, regardless of the negative impact on their retirees. I don't get why the exchanges they force them into don't give them more options.

 

[belkat125]

ATT has an unusual deal compared to other retiree plans I've seen that involve exchanges. Usually you get no money unless everything is purchased through the exchange. My most recent interaction was with One Exchange. One of my seminar attendees told me he had to use them only for everything or get nothing, and they are only offering BCBS A, F, or HDF, or Humana C, F, and HDF. All higher than if he had other carrier or plan options. I've seen similar arrangements with Aon. I get why the employer wants to use a single agency to simply things for themselves, regardless of the negative impact on their retirees. I don't get why the exchanges they force them into don't give them more options.

I'd love to know if anyone has the rationale behind this. This forum has lots of experienced professionals --- bet one of them has at least a darn good idea!!!

 

[HoosierLife]

I'd love to know if anyone has the rationale behind this. This forum has lots of experienced professionals --- bet one of them has at least a darn good idea!!!

I know I have only been at this for a few years but isn't this obvious? Higher premiums = higher commission.

 

[serendipity]

Interesting, The Telco Retiree Forum, indicated that the $1500 HRA spousal stipend is terminated upon death of employee retiree. This is another change as spouse previousl kept their coverage after employee death.

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I mispoke in that previous changes to existing medical for spouse terminated after 6 months upon death of employee/retiree. So, this existed without my knowledge. One more thing to plan for.

 

[somarco]

Big companies can no longer afford retiree medical plans for many reasons, not the least of which is new accounting rules and changes in taxation at the federal level. Consulting firms like Aon, Mercer, etc have sold these companies on the idea of a retiree "exchange program".

Companies like ATT pay Aon a fee to set up the exchange and coordinate the information. Aon hires inexperienced reps, gives them a script and sets up the offerings that will be shown to retirees.

More often than not they pick a handful of "name brand" carriers that just coincidentally have the highest rates (and often the highest commission) allowing them to "double dip".

There is no magic here. Follow the money.

And yes, future deposits to the HRA are not guaranteed and there is no survivor benefit. The HRA (by design) follows the (former) employee, not the spouse.

Serendipity, which Telco forum are you referencing? The one below or something different?
http://www.talkofthevillages.com/fo...non-villages-discussion-93/t-retirees-112290/

 

[yogooglethis]

I know I have only been at this for a few years but isn't this obvious? Higher premiums = higher commission.

Don't know this for sure because I don't sell Humana or BCBS Med supp but does anybody else know if these carriers still pay full commissions on G.I. business ? I know many of the carriers such as AARP/UHC pay reduced commissions for GI business,

 

[HoosierLife]

Don't know this for sure because I don't sell Humana or BCBS Med supp but does anybody else know if these carriers still pay full commissions on G.I. business ? I know many of the carriers such as AARP/UHC pay reduced commissions for GI business,

Well this shows my ineptitude. I know that many carriers pay a flat fee to nothing for GI business, but are renewals affected the same way? How does that work?

Plus, if the retiree is T65, then doesn't that make it normal OE business and not GI? I know ATT made my father in law retire before 65.

 

[kstein]

Bcbs pays full commish for GI in Missouri. I also think they contract with carriers that have footprints in multiple states for "simplicity"