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Good News on Retiree Health Insrance
Old 10-26-2019, 06:37 PM   #1
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Good News on Retiree Health Insrance

In 2018, I was let go with a package that took me to February 2019 for health coverage. So, first year of retirement health insurance cost nothing (except existing out of pocket costs). Second year (2019), my retirement benefit kicked in. The monthly premium was very good and the out of pocket costs were actually lower because I had been on a high deductible plan.

I received my notice today for 2020 and it is very good news. Looking at it, I thought it was the same amount, but of course it wasn't. For some reason, they raised the monthly premium by .01 . Seems a bit silly, but it's great news. One of my fears is that the company will mess with the retiree healthcare benefit; but each year they don't brings me one year closer to Medicare, where the risk will be greatly reduced. DW turned 63 this year, so even getting her to Medicare will be a relief from any concern about what the company may do in the future.
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Old 10-26-2019, 06:47 PM   #2
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Excellent!
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Old 10-26-2019, 07:34 PM   #3
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That is great news Jerry.
Isnt retiree health coverage an awesome bonus?

This is my 1st year retired at age 63. So I didnt expect to receive an annual notice of "Increase to Health Insurance Premiums".

I was afraid to open the envelope....
Couldn't be happier, there is NO increase for next year.
Yaaaaay.

So happy.
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Old 10-29-2019, 07:25 AM   #4
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A very good news, worth to celebrate!!!

contrary to what we hear most time - premium up or coverage is less than before or wondering how this year's health insurance will be......etc.

Its refreshing to hear some good news on that front
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Old 10-29-2019, 08:18 AM   #5
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Originally Posted by Jerry1 View Post
... getting ... to Medicare will be a relief...
Same here.

It's a sad thing when people can hardly wait to get older, in order to get medical insurance, when one does not have many years left to waste.
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Old 10-29-2019, 09:19 AM   #6
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I just received an email from mega-corp remind me to enroll for 2020 health benefit for retiree. Mega-corp is self insure, and eligible retirees (> 55 yo with 15 years service) are allowed to stay with mega-corp health ins group, however, one must pay full premium after 18 months COBRA (which is subsidized)

So from July 2018 to 2019 , I paid $400 for COBRA - PPO high deductible with HSA (deductible $3500, MOO $6500).
For 2020, I will pay $755 for PPO high deductible without HSA (deductible 3550, $6850 MOO)

7 years til medicare - yes, it is very sad that one would wish to get older and can't wait.
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Old 10-29-2019, 10:06 AM   #7
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neihn, feel your pain.

It is fortunate? you have the option of retiree healthcare at all, especially at relatively young age and service.
Very few mega-corps still extend that at any cost to retirees. Still stings to see that premium jump.

My mega-corp discontinued retiree healthcare in 1998. Those of us dinosaurs were grandfathered in if >55 with 25 yrs service.
I retired this yr at 63, pay $150 month premium for both DH and me for medical and prescription coverage.
It's from a self insured healthcare system that will provide many services with no cost to us if performed at an inhouse facility. Great in network providers at low copays.
It's still primary for me till Medicare in 2 yrs; secondary for 67 yr old husband on Medicare A and B already.
We can/will continue on retiree prescription and not have to purchase Part D as it is creditable coverage.

Enjoy your youth!
I might pay alot to be 58 again!
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Old 10-29-2019, 12:47 PM   #8
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I retired June 1st last year from a megacorp and had retiree health insurance. 3 months later they sent a letter and informed me that since only 20% of retirees are using the insurance they decided to do away with it. Well, since they drop coverage at 65 I was surprised that it was that high, but they froze the pension plan that year too so they probably had a lot of people like me that bailed.
I was able to control my income this year and got an ACA plan for free but starting next year it goes up to nearly $800 per month (from about $700) and this is for the cheapest bronze plan. I was surprised by the increase because the state approved an "average" rate increase of something close to 2.5%. Oh well pay and pay some more.
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Old 10-29-2019, 01:22 PM   #9
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I just got retiree medical rates for next year. After three years with no increases they raised it 27%. I've got 1.5 years til Medicare and DW has a little over 2. Although we could get ACA coverage cheaper with income management we're grateful for what we have.
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Old 10-29-2019, 01:31 PM   #10
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Just got my retiree HI package yesterday. BIG surprise! Rate dropped from $770/month (for 2) to about $250/month. No indication the plan changed, and letter noted it showed a large decrease from last year, but it still looks like an error to me. We both turn 65 next year, so lets see if they still fund the HRA toward a Medigap policy.
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Old 10-29-2019, 02:13 PM   #11
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WOW!
Dont stir the pot.
Just take a deep breathe and enjoy your found money!
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Old 10-29-2019, 02:50 PM   #12
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I meet my ACA provider next week and she told me premiums are down for next year. I imagine my plan will change again but should not be paying more.
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Old 10-29-2019, 04:10 PM   #13
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Mine actually went down by $20 a month..... of course, they have been chipping away at the benefits by increasing co-pays, changing drug coverage from a fixed co-pay ($10) to a "% co-pay) in previous years, so, I'm definitely paying more now than three years ago in real terms.
They even said in the recent letter: "the 2018 change to co-insurance of prescription drugs has had a favorable impact on our overall medical plan and this has helped to lower your premium contribution for 2020". Ain't that grand?
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Old 10-30-2019, 09:44 AM   #14
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I received my notice today for 2020 and it is very good news. Looking at it, I thought it was the same amount, but of course it wasn't. For some reason, they raised the monthly premium by .01 .
We can blame that on actuaries. Good on you - I share your joy.

I'm almost 63 and was on pins & needles waiting on my 2020 retiree medical packet in the mail. I was thrilled when it arrived because 1) it means I have insurance for another year, and 2) my premium didn't even go up .01, which really shocked me.

So, now I just have 2021 to fret about because I'm Medicare eligible very early in 2022. DH is already on it. Not only is it cheaper, but I find I don't have to jump through as many hoops to get things paid with Medicare as I do with my ER private coverage.

Those of us who have this rapidly vanishing benefit are very, very lucky. I never take it for granted.
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Old 10-30-2019, 10:28 AM   #15
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My retiree medical jumped 16% from $862/mo for wife and me to $1002/mo for 2020; quite a surprise. $329 for employee versus $1002 for employee+1 it is quite a difference. Only difference between employee and retiree is that employee pays about 25% of cost while retiree pays 50% of cost (this employee shares are half these retiree shares).

I am actually looking forward to Medicare (even with Supplement and Part D and (possibly) IRMAA in three years.

Marc
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