What would you do?

[dgoldenz]

Thanks for the interchange here. After reading other posts from you, I know this is a subject matter i.e. health plans you are an expert in.

I still need to get a formal quote from UHC thru our agent and , if you wouldn't mind, I'll be back at you with any questions I may have.

Something I've been wondering about is what my former employer will do come 1/1/14. The way I see it the possibilities are as follows:

- continue the retiree plan for retirees only.

- discontinue the plan but offer the $533 monthly stipend to all present retirees.

- discontinue everything and wish us good luck in finding a plan thru the exchanges or individual plans.

Again, thanks for the feedback.

Golfnut

Not a problem. Your analysis of the possibilities is pretty accurate. If the employer dropped the plan altogether you may be eligible for guaranteed-issue HIPAA coverage depending on your state's options and risk pool situation. When 2014 rolls around that might not matter, but a lot can change between now and then.

 

[golfnut]

Not a problem. Your analysis of the possibilities is pretty accurate. If the employer dropped the plan altogether you may be eligible for guaranteed-issue HIPAA coverage depending on your state's options and risk pool situation. When 2014 rolls around that might not matter, but a lot can change between now and then.

Again, thanks

 

[golfnut]

Anybody else have any thoughts?

Thanks,
Golfnut

 

[Zero]

I currently have retiree healthcare insurance via my MegaCorp plan. I'm super satisfied with it and the fact that they kick in 1/3 of the monthly premium. BUT, I have Zero information from them on what they will do after 2014.

Although I have nothing in writing guaranteeing me a continuation of my current plan, I do feel like:
1. There is a benefit to being part of a "herd" with some clout to keep the premiums lower for my MegaCorps insurance.
2. Less likelihood that the insurance provider could just drop me.
3. My MegaCorp has a vested interest in providing good insurance to it's former toilers.

I wonder if I might be foolish to have those feelings.

 

[GregLee]

3. My MegaCorp has a vested interest in providing good insurance to it's former toilers.

?

 

[Zero]

?

If you are questioning the meaning of that statement, it means that if my former MegaCorp (130,000 employees) company provides garbage healthcare insurance to its retirees, then a competitor (say MegaGiant 200,000 employees) can use that info to their advantage in the hiring process.

So yeah, my MegaCorp needs to provide us retirees a decent product.

Maybe it's only a SoCal issue but hiring MS and PhD level engineers is still a highly competitive process. Reputation helps. Treating the company's long term/retiring employees well is a plus.

 

[GregLee]

Maybe it's only a SoCal issue but hiring MS and PhD level engineers is still a highly competitive process. Reputation helps. Treating the company's long term/retiring employees well is a plus.

If you say so. But I recall some previous discussions about this that gave some evidence new hires just don't pay much attention to details of retirement plans. Too far off -- they're not thinking about retirement. So I think it is less than obvious that your company's recruitment efforts would really be hurt if they were to cut off your retirement health benefits.

 

[Zero]

Can you point me to those discussions, I'd appreciate the opportunity to read that and see the evidence that shows that well educated engineeing graduates "don't pay much attention" to benefits when considering new jobs.

 

[GregLee]

Can you point me to those discussions,

Sorry, I can't think of a search term.

 

[omni550]

Can you point me to those discussions, I'd appreciate the opportunity to read that and see the evidence that shows that well educated engineeing graduates "don't pay much attention" to benefits when considering new jobs.

I think that well-educated grads are likely aware that corporations keep changing their retiree policies (especially if they've seen their parents thus impacted). The grads (like most people) are most interested in what impacts them at the moment -- pay and benefits.

Also, as I've read, young people these days are less looking at corporations as life-long employers (due to the lack of loyalty on both sides). There, again, emphasizing less interest in pensions/retiree bennies and more interest in 'what are you going to do for me now'?

omni

 

[Mulligan]

I have to concur with Omni and GregLee. Engineers may be different, but working with young teachers who will have an excellent pension, don't care about the pension in their 20's. They just complain about how much the pension system "taxes them". Yes they think of it as a tax, because the benefit is so far away (longer than they've been alive) they just see it as a drain on their take home pay. Now if your referring to older engineers the company recruits that maybe a different story.

 

[FinanceDude]

I have to concur with Omni and GregLee. Engineers may be different, but working with young teachers who will have an excellent pension, don't care about the pension in their 20's. They just complain about how much the pension system "taxes them". Yes they think of it as a tax, because the benefit is so far away (longer than they've been alive) they just see it as a drain on their take home pay.

Maybe just tell them that all taxpayers in their municipality are getting drained to pay their pesnion benefit would result in less complaints?

 

[Mulligan]

Maybe just tell them that all taxpayers in their municipality are getting drained to pay their pesnion benefit would result in less complaints?

You would be surprised on probably how many of young ones would be glad to give it up, if they could keep their share, too. Which would undoubtably be wasted away on cars and bigger houses, and thus a drain on society when their older as our system doesn't pay into social security!
Delayed gratification is a difficult concept for many.

 

[golfnut]

I appreciate all the responses. However, I was hoping to receive some more advices iro my situation. Does anyone know of any other forums which might deal my specific question? Staying with my former employer's plan vs. the individual market?

Thanks,
Golfnut.

 

[Mulligan]

I appreciate all the responses. However, I was hoping to receive some more advices iro my situation. Does anyone know of any other forums which might deal my specific question? Staying with my former employer's plan vs. the individual market?

Thanks,
Golfnut.

Since I helped take your thread off track, the least I can do is give you my experience, as it relates to your situation. I retired and as a retiree was offered the opportunity to stay on group plan until 65. It was about $500 monthly with $1000 deductible and dr. and rx copays. Pretty traditional plan. Being 46 and no health problems, I went on an individual plan with $5500 deduct, 100% pay after deductible for $72 a month, and I opened up and HSA. Almost everyone I know who has retired, and that is a lot of them, stayed on the group plan. Most people want the security of that. Even a few I convinced to go on individual market did it only for 12 months to pocket a quick savings then jumped back on group as you had 12 months to make up your mind. My plan is grandfathered before Obamacare, so this may help me. If you join an individual plan now and assuming no changes are made to it, unhealthy people I assume will be able to join your plan. Since you benefited from underwriting you will get a better premium. But since everyone will be able to join, you will share in the process of paying for others. How close are you to 65? If I was 10 years older, I would have stayed with the group, but I'm taking a calculated gamble, that I can save a lot of money early and stay healthy, and then just hang on at the end until I'm 65, because I'm sure they will socket to me premium wise as I push into the 60's. So far I have saved at least $6000 bucks in just 12 months by going in individual market. I think your age, your tolerance to gamble to stay healthy (and wife), and your vigilance in fully funding your HSA are matters to consider. Will you definitely get the rate you were quoted? I made my decision based on the math, reading posts here, and working with ehealthinsurance. Most people prefer safety of group insurance. The only real risk you run on staying with your company plan is becoming unhealthy, company dropping retirement option, and Obamacare collapses. I certainly have no knowledge to assist you on that, and if I did, I would advise you to ignore it!

 

[golfnut]

Mulligan,

Thanks for the feedback. We still are with my employer's plan and if we decide to leave it and go with an individual plan, we cannot go back.

Ages - Me 56, Wife 53.

 

[Mulligan]

Mulligan,

Thanks for the feedback. We still are with my employer's plan and if we decide to leave it and go with an individual plan, we cannot go back.

Ages - Me 56, Wife 53.

One more thing to think about, Golfnut. Initial savings in going into individual market could quickly evaporate if their rates go up quicker than your group rate from your company. Just because it might be cheaper now, doesn't mean so in a few years. I've read on posts here through the years how they really got rate shock increases every year as they approached 65. Something you might be protected from more with your group plan at work. Just something else to worry about in your decision!