IBM moves Medicare eligible retirees to Extend Health

[CTgolfer]

If you are an IBM retiree eligible for Medicare, what are your thoughts on which of the medical products you will be selecting? Also, if we choose to cover our spouse through the medical subsidy, the subsidy amount reduces drastically. Does it make sense to cover our spouse outside of the subsidy and take the full amount of the subsidy for me?

Thanks for your opinions.

[BobAllen1290]

This is a serious screw job for IBM retirees. Thomas J. Watson Sr. would be MOST unhappy with the way his company now treats it's people.

[CTgolfer]

This is a serious screw job for IBM retirees. Thomas J. Watson Sr. would be MOST unhappy with the way his company now treats it's people.

I don't disagree. Would you mind sharing how you will be proceeding with health insurance coverage?

[Carl in Tampa]

My friend, Barbara, is the widow of a retired IBM employee whose retirement package included health care insurance for life for Barbara.

She was most distressed to learn that IBM was casting her adrift to fend for herself in the ObamaCare marketplace.

She is still trying to find out how much money she will be receiving from IBM to pay for the supplemental health insurance since Medicare is primary for her.

From what I read on the internet the number of choices a person may have to select from varies by county. Blue Cross Blue Shield is the only insurer that says they will offer coverage in all counties. We still don't know what other options she will have as a resident of Marion county.

And, of course we don't know what levels of coverage will be offered or what the monthly premium will be.

Alas............................ and shame on IBM for casting retirees adrift.

.

[SemiMike]

DuPont went this same route a few years ago, and I have been OK with it so far. They offered a monthly payment (to support buying the Medicare-related plan of our choice) in lieu of their own coverage, which was basically financially neutral for us. This all seem to be part of the trend of companies seeking to fix their future-going costs - thus, the move away from pensions to "enhanced" 401k plans. If it keeps the company healthy, I am all for it. We say we wanted to be treated like adults, but then get upset when we are, as being asked to take more responsibility for our choices, as here.

[l2ridehd]

I just finished reviewing all the options available though this change. It seems my best option is to just stay with the Aetna Advantage PPO I have been on with them. It is still a zero cost option, and the only change is a move from the Aetna drug coverage to a Medicare part D drug coverage plan but still 100% paid by Aetna. And as I take zero drugs today I really can't evaluate the impact of this.

I realize that this is only a two year option and then I will have to move to the Extend Health plans, but I also looked at those and the exact same plan is available at a cost of about 65% of the annual allowance. $159 a month or $1908 a year with an annual allowance of $3000. What no one can answer is how this allowance will be adjusted over time. Will it always be $3000? Will it go up with inflation? You know the $159 monthly charge will go up. Am I losing the other $1100 in co-pay by not moving to the EH plan now?

The other issue I can't get an answer to just yet is they also discuss the $7500 and $7000 annual allowance. (I qualify for the $7000 based on retirement date) But how does that differ from the $3000 annual allowance? Does the $3000 cover monthly plan reimbursement and the remaining $4000 cover co-pays or deductibles? It says the $7000 is HMA (health maintenance account) but no where does it discuss how the two $$ amounts connect. Anyone figure that out?

[CTgolfer]

I just finished reviewing all the options available though this change. It seems my best option is to just stay with the Aetna Advantage PPO I have been on with them. It is still a zero cost option, and the only change is a move from the Aetna drug coverage to a Medicare part D drug coverage plan but still 100% paid by Aetna. And as I take zero drugs today I really can't evaluate the impact of this.

I realize that this is only a two year option and then I will have to move to the Extend Health plans, but I also looked at those and the exact same plan is available at a cost of about 65% of the annual allowance. $159 a month or $1908 a year with an annual allowance of $3000. What no one can answer is how this allowance will be adjusted over time. Will it always be $3000? Will it go up with inflation? You know the $159 monthly charge will go up. Am I losing the other $1100 in co-pay by not moving to the EH plan now?

The other issue I can't get an answer to just yet is they also discuss the $7500 and $7000 annual allowance. (I qualify for the $7000 based on retirement date) But how does that differ from the $3000 annual allowance? Does the $3000 cover monthly plan reimbursement and the remaining $4000 cover co-pays or deductibles? It says the $7000 is HMA (health maintenance account) but no where does it discuss how the two $$ amounts connect. Anyone figure that out?

The $7000 annual allowance is effective until a retiree reaches the Medicare eligible age. Once a retiree is receiving Medicare, the $3000 annual allowance applies. Covering both the retiree and their spouse with $3000 annually is difficult, unless you take a PPO or HMO with $0 monthly payments. However, retirees need to be sure they understand the HMO/PPO they may be signing up for. As an example, Moffitt has declined to be in-network on the United Healthcare PPO/HMO. That could mean a significant cost to many. In addition, as you may want to move from an HMO/PPO to a true Medicare supplement, you will go into the supplement at your current age, which could mean an significant increase in premiums. A lot to consider...

[l2ridehd]

Thanks for the clarity around the $7000 vs the $3000. And yes I did read that finally. Still have lots of questions, but for now I will just stay with the Aetna $0 cost plan and wait until all the dust settles around these health care changes.

[justjim]

We all hate change---especially after retirement. However, consider yourself fortunate. Some of us that we're promised Employer paid health care following retirement----are getting zero(0) that's nothing paid by our employer. It is what it is.

Seriously, consider yourself fortunate. Companies and Governments have been cutting back on costs that couldn't be sustained over the long haul. The cost of health care is outrageous---like Mom said----"0ur chickens have come home to roost."

[cinepuxon]

If your Medicare Advantage plan OR an employee retirement plan is ending you then have a 'guaranteed issue right' to go back to Original Medicare and pick up a Medigap policy ie., supplement. The rate the insurance company can charge you will only be based on your age and not on any existing medical condition. Medigap Plan F (most coverage) can be under $200/month and you will never see a co-pay. You will also need a Plan D which can be as low as $12/month with no co-pays for tier 1 and tier 2 generics by mail order. See a SHINE counselor at The Villages rec centers during the open enrollment season. 1-800-963 5337.

[BobAllen1290]

I don't disagree. Would you mind sharing how you will be proceeding with health insurance coverage?
I'm not connected directly. My father and my wife's father were both R&D engineers for IBM at the Endicott, NY facility. My father in law is currently wading thru his options now, and my mom, who is 90 is having my sister figure out her next choice.

[Madelaine Amee]

We all hate change---especially after retirement. However, consider yourself fortunate. Some of us that were promised Employer paid health care following retirement----are getting zero(0) that's nothing paid by our employer. It is what it is.

Seriously, consider yourself fortunate. Companies and Governments have been cutting back on costs that couldn't be sustained over the long haul. The cost of health care is outrageous---like Mom said----"0ur chickens have come home to roost."

Totally agree with your input above. We, too, are part of the generation which was promised "company paid health care for life" and, at the time that we were dropped there was no Obamacare safety net which is available to everyone now. $3,000 a year will buy two people an excellent health plan, just shop around - you will be fine.:smiley:

[Ding123]

I am a widow of an IBM retiree. At the time my husband retired he chose a retirement package that gave me part of his pension and medical coverage for life. When I moved to Florida I chose to go with Aetna and have been very happy. I have decided at this time to continue with Aetna as long as it is offered. I am aware that with Aetna I will be under the Part D drug plan. If I understand all the information I have received from IBM an Aetna I can remain with Aetna thru 2015. By that time the dust will settle and we will hopefully be able to understand all the effects of what our elected officials have done to the medical program in our country.

[l2ridehd]

Totally agree with your input above. We, too, are part of the generation which was promised "company paid health care for life" and, at the time that we were dropped there was no Obamacare safety net which is available to everyone now. $3,000 a year will buy two people an excellent health plan, just shop around - you will be fine.:smiley:

Maybe you really believe this but it is absolutely not true. The lowest cost plan available for ONE is 571.26 a month (bronze plan) or $6855.12 a year. Over twice the $3000 a month. Go to einsurance.com and do a search. Yes it use to cover it before OC, but not now. Average policy increase this year is 41% and it will get worse. Dig your head out of the sand and look at what is available.

[PennBF]

As a matter of record an IBM Retiree cannot extend his/her current Insurance Plans unless the current plan they have ends with "HMO or PPO".
If you have a plan that ends in "Integration" Aetna will tell you it cannot be
extended and you should go to Extended Health to see what they will offer.:mornincoffee:

[Bill Wynne]

If you are an IBM retiree eligible for Medicare, what are your thoughts on which of the medical products you will be selecting? Also, if we choose to cover our spouse through the medical subsidy, the subsidy amount reduces drastically. Does it make sense to cover our spouse outside of the subsidy and take the full amount of the subsidy for me?

Thanks for your opinions.

I am upset because I would like to enroll in the new United Healthcare "The Villages Medicare Complete" plan. The Extend Health Benefites coordinator I talked to said they (Extend Health) don't support this plan. He was also rude. He said I can take the villages plan but then I can't then use the HRA funds from IBM that Extend health manages. In short... I have to use their plans.

Let me know if you hear anything different on this.

[SemiMike]

I am upset because I would like to enroll in the new United Healthcare "The Villages Medicare Complete" plan. The Extend Health Benefites coordinator I talked to said they (Extend Health) don't support this plan. He was also rude. He said I can take the villages plan but then I can't then use the HRA funds from IBM that Extend health manages. In short... I have to use their plans.

Let me know if you hear anything different on this.

DuPont also uses Extend Health for its retirees, and I now have the United Healthcare plan, and no difficulty with reimbursements.

[JourneyOfLife]

If you are an IBM retiree eligible for Medicare, what are your thoughts on which of the medical products you will be selecting? Also, if we choose to cover our spouse through the medical subsidy, the subsidy amount reduces drastically. Does it make sense to cover our spouse outside of the subsidy and take the full amount of the subsidy for me?

Thanks for your opinions.

Will your spouse be eligible for a survivor benefit? What are the rules?

I would put a pencil to paper and compare all of the alternatives.

[CTgolfer]

Just as an fyi... this is the decision my husband I made regarding 2014 health insurance.

We opted out of the death benefit because it would have reduced our annual HRA fund to around $2300. Instead, we took the full amount of the HRA fund ($3,000). For myself, I chose AARP United Healthcare Plan F (around $183/month) and for my husband we chose Plan N (around $132/month).