Lockheed Martin Retiree Medical Cost

[digger1959]

I was wondering if anyone on this forum can help me with a "sanity check" on the cost of LM retiree medical. I took a voluntary layoff early this year from LM and was not yet 55 so I have been paying for COBRA waiting for my birthday in 2014 so I can transfer to the retiree medical. COBRA for myself and my spouse is $1137 per month so I was sure that I would save money with the retiree medical. I received the notice this week that the equivalent coverage would cost me $1583 per month. Can anyone tell me if this seems like an appropriate cost for someone retiring with over 29 years of service? If so, I guess that I am going to be getting ACA! I am getting no help from the LM Service Center.

Thanks,
DG

 

[audreyh1]

I was wondering if anyone on this forum can help me with a "sanity check" on the cost of LM retiree medical. I took a voluntary layoff early this year from LM and was not yet 55 so I have been paying for COBRA waiting for my birthday in 2014 so I can transfer to the retiree medical. COBRA for myself and my spouse is $1137 per month so I was sure that I would save money with the retiree medical. I received the notice this week that the equivalent coverage would cost me $1583 per month. Can anyone tell me if this seems like an appropriate cost for someone retiring with over 29 years of service? If so, I guess that I am going to be getting ACA! I am getting no help from the LM Service Center.

Thanks,
DG

Wow! You all must be getting some terrific health benefits for that price!

I guess it depends on your state.

 

[martyb]

I work in a Lockheed Martin facility, but am not a LM employee. I work for the DoD. I've been here nearly 5 yrs, and am about to retire (nearly 37 yrs total). I've heard a lot of employees grumbling about LM's health insurance. I don't know specifics, other than it sounds pricey for what you get, to me.

 

[SteveNU]

Retired this year at 56 with 29 years from a fortune 500 company. Our retiree health insurance is subsidized by the company. My 2014 cost for a high deductible HSA qualified plan for family of four is costing me $1K a month. There are two other options available with costs between $1600 to $1800 a month. If you knock the kids off the policy it drops the price by about $300 - $500 a month.

 

[digger1959]

Thanks, Steve. My company subsidizes too. I am hoping that the price they quoted me is a mistake without the subsidy taken into account. I am supposed to get the answer today.

 

[W2R]

Hi Digger1959, and welcome to the ER forum.

Someone I know quite well retired from Lockheed Martin, and is paying around $950/month for his LM retiree medical this year but it is going up and will be $1050-$1100 per month in 2014. This is just for a single person, no family, and LM's most expensive medical plan option.

LM provides great medical coverage but also very expensive. He, too, is looking into PPACA coverage but at age 60 he says it will be only a few hundred less per month and a much lesser policy. Also he is looking into the possibility of taking one of LM's less expensive medical plan options.

Medical coverage in retirement has been a huge problem for many.

 

[digger1959]

Thanks W2R. Do you happen to know how many years your friend was at LM? The amount of subsidy that you receive is based on years of service.

 

[W2R]

Thanks W2R. Do you happen to know how many years your friend was at LM? The amount of subsidy that you receive is based on years of service.

Nope, I really have no idea. He is fully retired on a pension but in the new (lower pension) system due to a lengthy interruption in his years of work there. In his case, I don't think there is any subsidy - - can't imagine, at those rates, anyway! But I don't really know.

Sounds to me like they are giving you the correct rate, except not allowing you any subsidy.

 

[digger1959]

Sounds to me like they are giving you the correct rate, except not allowing you any subsidy.

That is what I am thinking and why I posted the question. I hope that that is the case.

Thanks.

 

[MBAustin]

I didn't think DH and I had a very good deal from our Megacorp, but I'm obviously mistaken. We have separate individual coverage (no spouse coverage available, but we both ER'd from the same company). For 2014 it will be about $700 / month ($300 for DH and $400 for me - my subsidy is less because I was younger when I ER'd). It went up about 6.6% over 2013.

 

[wolf]

I was wondering if anyone on this forum can help me with a "sanity check" on the cost of LM retiree medical. I took a voluntary layoff early this year from LM and was not yet 55 so I have been paying for COBRA waiting for my birthday in 2014 so I can transfer to the retiree medical. COBRA for myself and my spouse is $1137 per month so I was sure that I would save money with the retiree medical. I received the notice this week that the equivalent coverage would cost me $1583 per month. Can anyone tell me if this seems like an appropriate cost for someone retiring with over 29 years of service? If so, I guess that I am going to be getting ACA! I am getting no help from the LM Service Center.

Thanks,
DG

Agilent Retire. 2014 monthly premium, husband and wife. $1019
25+ yrs. (Kaiser plan, $773).

Hewlett Packard. husband and wife, Kaiser of Calif. plan, $ 1100+.

I know, Agilent rates were increasing because, Retires are no longer included with working Agilent employees.

Your rates are really high.....

 

[meierlde]

I was wondering if anyone on this forum can help me with a "sanity check" on the cost of LM retiree medical. I took a voluntary layoff early this year from LM and was not yet 55 so I have been paying for COBRA waiting for my birthday in 2014 so I can transfer to the retiree medical. COBRA for myself and my spouse is $1137 per month so I was sure that I would save money with the retiree medical. I received the notice this week that the equivalent coverage would cost me $1583 per month. Can anyone tell me if this seems like an appropriate cost for someone retiring with over 29 years of service? If so, I guess that I am going to be getting ACA! I am getting no help from the LM Service Center.

Thanks,
DG

Does LM put retirees into a seperate pool from active employees? If so it makes sense, that the premiums would be higher for retiree coverage than for corba which is based upon the active pool price.

 

[gauss]

Does LM put retirees into a seperate pool from active employees? If so it makes sense, that the premiums would be higher for retiree coverage than for corba which is based upon the active pool price.

I think nearly all group health plans are setup like that. Separate pools for active vs retiree. I can't speak to LM directly however.

 

[digger1959]

Thanks all for the comments. It sounds like we will be signing up for ACA or going back to work. All these years, we thought that we could count on health insurance that would be affordable in retirement because they would be subsidized by the company. My father retired from civil service in the late 80's and I just assumed that we would experience somewhat higher premiums but not 12 X.

 

[scrinch]

I checked with my daughter who is in HR at LM and she said that number was about right. It sounds high to me...maybe right for the unsubsidized cost. My FIL just left the LM retiree medical program because he could get cheaper, better Medicare supplement through my MIL's retiree program.

 

[tinlizzy]

UPS retiree insurance $50/mo single $100/mo for family (yes, family), incl. union and non-union $500,000 lifetime limit per person.
UPS retiree insurance under Teamsters (certain locals) $200/$400 couple only. $200,000 limit per year per person.

Both incl. dental and vision

Be aware that retiree insurance can still impose lifetime limits.

 

[ziggy29]

UPS retiree insurance $50/mo single $100/mo for family (yes, family), incl. union and non-union $500,000 lifetime limit per person.
UPS retiree insurance under Teamsters (certain locals) $200/$400 couple only. $200,000 limit per year per person.

Both incl. dental and vision

Pretty cheap, but getting cancer is bad enough on its own without worrying about blowing through a six-figure annual and lifetime maximum....

 

[Katsmeow]

Don't know anything about LM.

DH is on subsidized retiree coverage from the megacorp he worked for. He is in the group that has the largest subsidy. However, the company only picks up the first 5% of any increase. Last year the increase was about 161% (after subsidy) and this year it is about 60% .

Anyway for a couple - the subsidized cost under the high deductible plan is $954 a month to cover both. In network family deductible is $3000.

If we were insane enough to go for the POS plan the subsidized (yes subsidized) cost would be $2780 a month. While this has a little bit lower deductible there is no way that I can see where that would ever be a rational choice.

Just for grins, the unsubsidized cost of the first option (some employees get unsubsidized coverage) is $1518 a month. The unsubsidized cost of the second option would be $4074 a month.

 

[scrinch]

Don't know anything about LM.

...
If we were insane enough to go for the POS plan the subsidized (yes subsidized) cost would be $2780 a month. While this has a little bit lower deductible there is no way that I can see where that would ever be a rational choice.

Just for grins, the unsubsidized cost of the first option (some employees get unsubsidized coverage) is $1518 a month. The unsubsidized cost of the second option would be $4074 a month.

Holy sh*t, Batman. Where could that $4074 number come from? Maybe it is just like the sticker price on a car at the dealership...just there to see what unthinking sucker might bite

Edit: sorry, you're not Batman, you're the cat woman.

 

[digger1959]

Holy sh*t is right? Katsmeow, are you trying to make me feel better?
How can that insurance company (and the Megacorp that is agreeing to it) justify an almost $50,000 a year premium?

 

[Bikerdude]

Before I became eligible for Medicare I was paying $225/mo for medical (BCBS low deductible with no limits) and dental. They had capped the amount of retiree premium's back in the 90's and I was starting to hit it just before I turned 65.

Now with Medicare, I pay $363/mo which includes retiree supplemental medical, dental and MC part B. So my total cost went up for the same coverage. However I'm sure no one is shedding a tear for me.

 

[audreyh1]

Before I became eligible for Medicare I was paying $225/mo for medical (BCBS low deductible with no limits) and dental. They had capped the amount of retiree premium's back in the 90's and I was starting to hit it just before I turned 65.

Now with Medicare, I pay $363/mo which includes retiree supplemental medical, dental and MC part B. So my total cost went up for the same coverage. However I'm sure no one is shedding a tear for me.

Wow - now you know how good you had it!

 

[BobMax]

Retired from Procter & Gamble at 56 with 28 years of service. I paid $388/mo, low deductible, no limit including dental for me and my DW until DW went on Medicare this year. I now pay $483/mo including a supplemental for DW from P&G. 2014 it will increase to $520/mo.

 

[Bikerdude]

Retired from Procter & Gamble at 56 with 28 years of service. I paid $388/mo, low deductible, no limit including dental for me and my DW until DW went on Medicare this year. I now pay $483/mo including a supplemental for DW from P&G. 2014 it will increase to $520/mo.

I was able to reduce my costs by increasing the supplemental deductible for 2014. After all, its supplemental coverage and MC is primary. Routine office visits are not subject to deductible and I can change coverage each year. If you have the deductible option (and you're healthy) you might want to investigate.

 

[misty57]

I was wondering if anyone on this forum can help me with a "sanity check" on the cost of LM retiree medical. I took a voluntary layoff early this year from LM and was not yet 55 so I have been paying for COBRA waiting for my birthday in 2014 so I can transfer to the retiree medical. COBRA for myself and my spouse is $1137 per month so I was sure that I would save money with the retiree medical. I received the notice this week that the equivalent coverage would cost me $1583 per month. Can anyone tell me if this seems like an appropriate cost for someone retiring with over 29 years of service? If so, I guess that I am going to be getting ACA! I am getting no help from the LM Service Center.

Thanks,
DG

DH retired from LM last May with 33 years of service.

The open enrollment materials that we received as retirees from LM show that premiums for LM HealthWorks would be $1520.63/mo. (Participant + One or More) for 2014. The difference between the $1520.63 that we were quoted and the $1583 that you were quoted could be the difference between retiring after 29 years vs retiring after 30 or more years.

We never got into LM HealthWorks. We always felt that it was too expensive. DH talked to several co-workers who seemed happy enough with Kaiser so we opted into that in 2009 (I think it was) when LM no longer offered Blue Cross as an option.