ATT Cancels Retiree Health Plan

[riskybiz]

Because AT&T is terminating their existing Medical Plan effective 1/1/2015, all medicare eligible retirees are being transitioned to a private AON exchange in Gurantee Issue mode. All Medigap Plans for each carrier are Gurantee Issue moves. Not all plans are available in specific carriers. Most common plans chosen are F, G, and N. Their are only 5 or so carriers with Plan F High Deductible. All cariers have regular Plan F. Some are missing G or N.

So you are telling us that AON is offering Guarantee Issue for plan G? If they are retirees and already have part B the plan G is not GI in the open market. Are you sure you know what you are talking about?

 

[WCMason]

So you are telling us that AON is offering Guarantee Issue for plan G? If they are retirees and already have part B the plan G is not GI in the open market. Are you sure you know what you are talking about?

I met with an ATT retiree couple that I am going to write their med supp. They were told by the Aon rep that all plans, including G, were guaranteed issue. That didn't make sense to me at first, but then I thought again. This really isn't an open market enrollment; this is an employer supplement using a third-party administrator. In that case the plan administrator can work out whatever deal they want to with the contracted carriers.

 

[riskybiz]

I met with an ATT retiree couple that I am going to write their med supp. They were told by the Aon rep that all plans, including G, were guaranteed issue. That didn't make sense to me at first, but then I thought again. This really isn't an open market enrollment; this is an employer supplement using a third-party administrator. In that case the plan administrator can work out whatever deal they want to with the contracted carriers.

That changes the game for so called "private exchanges" enrolling in open market pools of insureds. If true that changes the pool of PLan G for these carriers accepting GI for plan G which is not the case in the open market. I close smaller retiree plans a couple of times a year and this is concerning.

 

[serendipity]

What AON yold me about Gurantee Issue made sense to me in NJ because the NJ State Health site also carried same rules for Gurantee Issue as for Initial enrollment at age 65. It did not stipulate exclusions for certain Medigap Plan types. Maybe there is a difference by state? In any case you wound up with preferred rate in guarantee issue period without underwriting regardless of plan. Of course NJ is one of only five states under Obamacare that prempts using smoking as a criteria for Obamacare rates. So, there are differences by state.

 

[gajfo]

Is AARP's Plan N a guarantee issue? I've had a couple from ATT contact me and I showed them Plan F and N they liked Plan N.

Thanks in advance

Yes. all their plans in the states I have are GI. Most other carriers have A and F GI.

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The three dental carrier plans on AON site (Renaisance, Delta & AARP) are actually third party sites and not actually offered by AON. The cost of these plans would be most of your HRA dollars. The limited Medicare Advantage dental, where it exists, is cleaning & checkup only. AT&T has eliminated it's Cigna Dental, without any compensation to an HRA for dental, unfortunately without ever stating this. As an example, spousal HRA is $1500, comparable AARP dental is $1600. Retirees will have to pay their dental out of pocket, possibly with a non insurance dental discount plan. Retirees need remember the original medical contribution by AT&T was capped in 1989 at $8,500 (for Medical & Drugs), and the Medicare Part B reimbursement was capped at $45 per month. The spousal Part B was eliminated in 1998. That was significantly greater then the computed HRA for 2015 which has $0 dollars for Dental and Vision.

And Cigna too. Some of the MAPD plans have full dental for a very reasonable cost, of course some just come with preventative.

 

[somarco]

Aon still pushing high priced Medigap plans. Vote of "no confidence" from the folks I am talking to when I ask about the quality of the advice they are getting from the reps.

Pretty much boils down to, the reps don't understand Medicare or the options.

Lot's of people not happy about this.

 

[Robert Bache]

Some clients have let me use their log in information to see medigap quotes and it appears Aon's pricing is higher than the open market? I did not think that would be allowed.... I didn't believe it when my agents told me but than I saw it with my own eyes...

 

[alldaytuesdays]

Yes, I've seen this too. Didn't believe it until I saw it. Apparently, they are charging some sort of a "handling fee" on top of premiums. Not sure if it is percentage-based or a flat fee, but on the client I saw, the premium was supposed to be $157 and same company/plan through AON was $188!

Some clients have let me use their log in information to see medigap quotes and it appears Aon's pricing is higher than the open market? I did not think that would be allowed.... I didn't believe it when my agents told me but than I saw it with my own eyes...

 

[Robert Bache]

Thanks, the client is calling Aon again to verify she can still get the HRA if she works with me. My understanding is as long as she get the dental or drug coverage from Aon, she can get HRA.

 

[Daytona_Guy]

Thanks, the client is calling Aon again to verify she can still get the HRA if she works with me. My understanding is as long as she get the dental or drug coverage from Aon, she can get HRA.

Part D yes, dental no. Covered clearly in their FAQ. Their front line phone people have been lying about this. Managers there will confirm the truth.