ACA and Retiree Medical

[bpgdeg1234]

Thanks in advance for any assistance. Looking for some additional confirmation / perspectives on the following ACA and retiree healthcare situation.

I am presently bridged in a megacorp retiree medical plan and enrolled with my spouse and 2 or more dependents at a rather hefty "unsubsidized" rate until I reach 55. Once I reach 55 I will then be eligible for a subsidy to help offset some of the cost (TBD on amount).

As a stipulation of the retiree medical plan, I cannot drop coverage and come back into the plan at a later point so we have been paying and plan to continue to pay the monthly retiree medical plan cost until the subsidy kicks in as we want to ensure we keep this option available to us in light of the newness and uncertainty around ACA.

In light of the upcoming ACA changes though, I'm presently investigating whether it is acceptable for only me to remain on the company retiree plan (believe this to be true but not confirmed yet) and consider dropping the wife and children in the upcoming 2014 open enrollment period if we can find less expensive, comparative exchange coverage on the open market.

Figuring this to be true, I can then enroll my wife and two children separately in exchange coverage, resulting in us paying my individual retiree plan premium, in addition to the monthly exchange premium for them, less any premium subsidy based on family size of "four" and income level?

Thanks again for any input / suggestions.

 

[RockyMtn]

Is your intent to drop them into the exchange and then bring them back to your plan once you hit 55 and receive the company subsidy?

 

[ERhoosier]

Not an easy decision with so much uncertainty in the overall marketplace. Overall HI costs, corp retiree bennies and ACA could change a lot in coming years (inc cut backs in subsidies &/or eligibility). Depending on your specific circumstances (MAGI, state HI premiums, features of ACA vs corp HI plan, etc) and that opting out of your co HI may be burning a bridge, I would be tempted to stay on co plan for 2014 to see how ACA implementation shakes out.

Good luck- and welcome aboard!

 

[bpgdeg1234]

Is your intent to drop them into the exchange and then bring them back to your plan once you hit 55 and receive the company subsidy?

Potentially. I guess it depends on subsidized retiree medical plan cost versus exchange plan cost.

 

[RockyMtn]

Potentially. I guess it depends on subsidized retiree medical plan cost versus exchange plan cost.

I would make sure that your retiree plan allows you to do this.

 

[bpgdeg1234]

Not an easy decision with so much uncertainty in the overall marketplace. Overall HI costs, corp retiree bennies and ACA could change a lot in coming years (inc cut backs in subsidies &/or eligibility). Depending on your specific circumstances (MAGI, state HI premiums, features of ACA vs corp HI plan, etc) and that opting out of your co HI may be burning a bridge, I would be tempted to stay on co plan for 2014 to see how ACA implementation shakes out.

Good luck- and welcome aboard!

Thanks ERhoosier. I would not opt out of company health insurance and would remain in as an individual but would consider dropping wife and kids until subsidy kicks in and then reevaluate at that point.

So basically would look to pay both my individual premium in company retiree medical plan and also wife and kids on exchange plan if the combined premiums are less expensive than just continuing as a family in company plan at unsubsidized rates.

 

[bpgdeg1234]

I would make sure that your retiree plan allows you to do this.

Thanks RockyMtn for input and yes indeed this will be a major prerequisite to moving forward.

 

[MuirWannabe]

I'm in a very similar situation. I'd like to ER before 55 but do not qualify for subsidized HI from megacorp until 55. Hoping that ACA may provide cheaper options that change the 55 incentive and allow me to retire earlier. But ACA seems so up in the air for now. This uncertainty is the biggest impediment for me to be able to pull the trigger. Not sure how long it will take to have the ACA law and its ultimate effects on our retireee heatlh plan shake out. But I might be 55 by then anyway.

I suspect this uncertainty is impacting many potential ER's in our country.

 

[braumeister]

I think you need to make an appointment to sit down with someone in the benefits section of your megacorp HR department and discuss your options.

Chances are they have already considered your situation and know exactly what to tell you.

 

[jflynn4]

Regardless of what you're told by the benefits managers, I would stay put in your current plan thru the transition in 2014 to see how everything pans out regarding the new law and its implementation. You have until March for "Open Enrollment" so you're not hurting yourself by waiting to see if things even implement January 1.

Wouldn't be surprised to see the rules regarding subsidies change before everything takes effect.

 

[bpgdeg1234]

Thanks Braumeister and jflynn4 for your perspectives. I have already reached out to the benefits group and started asking questions. I'm told I can readily drop my wife and children and then add them back in during a future Open Enrollment period or if a Life Event occurs, but seem to be getting some conflicting information for whether I would be able to re-enter the retiree medical plan if I were to also choose No Coverage. I plan to make another call tomorrow after reading some of the online plan documents. I don't plan to make any moves unless 100% sure of my ability to rejoin the plan if need be at some point in the future.

 

[scrinch]

When I left Megacorp in 2006 I had to deal with a similar clause in the retiree health benefits. Although the bold print said that I had to remain in the program to maintain future eligibility, the fine print said that as long as I maintained some type of health insurance, I would be eligible to opt into the retiree plan later. So I joined my wife's work-subsidized insurance and submitted evidence of that insurance to the Megacorp benefits group. Their website continues to show me eligible for the subsidized retiree program, so I think I am okay. You might see if your Megacorp fine print is similar.

 

[bpgdeg1234]

When I left Megacorp in 2006 I had to deal with a similar clause in the retiree health benefits. Although the bold print said that I had to remain in the program to maintain future eligibility, the fine print said that as long as I maintained some type of health insurance, I would be eligible to opt into the retiree plan later. So I joined my wife's work-subsidized insurance and submitted evidence of that insurance to the Megacorp benefits group. Their website continues to show me eligible for the subsidized retiree program, so I think I am okay. You might see if your Megacorp fine print is similar.

Thanks scrinch, will do.

 

[pb4uski]

Thanks Braumeister and jflynn4 for your perspectives. I have already reached out to the benefits group and started asking questions. I'm told I can readily drop my wife and children and then add them back in during a future Open Enrollment period or if a Life Event occurs, but seem to be getting some conflicting information for whether I would be able to re-enter the retiree medical plan if I were to also choose No Coverage. I plan to make another call tomorrow after reading some of the online plan documents. I don't plan to make any moves unless 100% sure of my ability to rejoin the plan if need be at some point in the future.

Assuming that you can exit and later reenter, make sure that you get that from someone in authority in writing rather than just relying on some verbal indication that can later be denied or perhaps the person you talk to isn't with the company later on.

 

[bpgdeg1234]

Assuming that you can exit and later reenter, make sure that you get that from someone in authority in writing rather than just relying on some verbal indication that can later be denied or perhaps the person you talk to isn't with the company later on.

No doubt pb4uski, that is my biggest concern. I feel very comfortable I can drop the wife and kids with the subsequent ability to add them back again later if makes sense. However, I personally need some real confirmation first on my ability to select no coverage at all and be able to subsequently get back in plan as I clearly don't want to be locked out if things go awry with ACA.