Wait. So I retired from AT&T two years ago (L2, Middletown, NJ) with AT&T retiree health care benefits, and I will be 65 soon. When I turn 65 I need to register for Medicare (that's ok), However, when signing up for Medicare it sounds like I no longer qualify (or will have the option to choose) AT&T retiree health care benefits. Does this sound right? I don't know the answer, this is not a rhetorical question, I'm asking.
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Income Related Monthly Adjustment Amount (IRMAA) is a Medicare surcharge for Parts B and D. It kicks in if gross income is above a threshold. It is based on IRS tax filing that Medicare receives. There is a 2 year lag in IRS update to Medicare.
If the signup for Parts B and D is in 2020 and gross income shown on tax filing from 2018 is above threshold IRMAA kicks in and stays there until gross income falls below the threshold. If gross income in 2020 is below threshold due to a life change form SSA-44 can be filled out and submitted to SSA to reduce or get rid of IRMAA. Already paid amounts in 2020 will be refunded.
It may kick in again whenever gross income on IRS tax filing goes above threshold.
Money from HRA subsidy can be used to cover IRMAA payments.
If you work for company with more than 20 employees there is no need to sign for Medicare at age 65 if you don't want to. Part A is free for most people, but once you sign for Medicare you cannot contribute to an HSA. It's all very complex and you should research it carefully.
https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/should-i-get-parts-a-b
https://www.cms.gov/Outreach-and-Education/Find-Your-Provider-Type/Employers-and-Unions/FS3-Enroll-in-Part-A-and-B.pdf
https://www.aarp.org/health/medicare-qa-tool/do-i-enroll-in-medicare-age-65-even-if-still-working/
https://www.kiplinger.com/article/insurance/t039-c000-s002-when-to-sign-up-for-medicare-when-to-delay.html
I think I will plan to just drop dead at 64 and avoid all the hassle. I got enough savings to last that long.
@1fmi, the problem is that's Obamacare, and it's NOT affordable, nor of quality healthcare coverage. Not posting to start a political war, we have enough of those. Trump is continuing to overhaul it, but keep it in addition to the other good insurance products, as to have wider competition. This means they have to keep up on service, quality and price, etc, otherwise, it turns into trash. Trash is what all those other socialist countries healthcare is (and no, Michael Moore's films are outright lies, do your research) , if they haven't gone bankrupt, because they are trash and too expensive, unsustainable.
1ghi is wrong—you must register for Medicare at age 65, even if you continue working, or you will be hit with huge financial penalties.
If you continue to work at age 65 and older, you don’t have to use Medicare benefits, until you retire, but, again, it’s very important that you register for Medicare at age 65. You can register a few months before you turn 65.
Good grief. Wouldn't it be simpler just to have a descent universal health care plan like every other country does? Our medical system is such a mess and a ripoff!
To 1mky: If you continue working beyond 65 with AT&T you DO NOT have to signup for Medicare (Part A or B). Because AT&T has > 20 employees and cover you medically on a group plan you can continue with this insurance until you retire. At the time you retire then you MUST sign up for Medicare.
If, however, you initiate SS benefits at your full retirement age (FRA) while you continue to work, then you are AUTOMATICALLY enrolled in Medicare Part A (which is free). Also, you can no longer contribute to an HSA, In fact they want you to stop HSA contributions 6 months prior to taking SS Benefits.
Last thing. Medicare bills you based on the previous 2 years of income (gross, not net), so be prepared for a substantial monthly premium.
From a union website:
Individuals who retire on or after Jan. 1, 2021 will no longer qualify for a company subsidy once they are eligible for Medicare. This does not change medical coverage prior to qualifying for Medicare.
We continue to provide our current eligible retirees who are not yet eligible for Medicare with some of the best health care coverage in America, and we remain one of only about a quarter of large firms that offer retiree health benefits.
There is a separate letter to the union indicating for the already retired, the AON subsidy of $2700 is continued through 2023.
One big mistake I made while working at AT&T (occupational) was taking the low deductible health insurance with a larger premium instead of the higher deductible plan. The difference in the deductibles was less than the premium differences. Then, the higher out-of-pocket had to be considered, but I would have had to run over something like $20,000 in charges in order to get a benefit from the lower deductible plan.
Now, if I had taken the higher deductible plan, I could have funded with pre-tax dollars an HRA that would carry into the future. That HRA can be used to pay Medicare B premiums among other things. In case AT&T pulls the rug out after 2023, I would have liked to have that HRA.
There is a lot of thinking that needs to go into this well before retirement. Once eligible for Medicare, one can consider Medicare Advantage. For $0 premium, annual physical, medical, dental(preventative), pr-scrip-ion and vision is covered. If Medicare Advantage is selected, there is a 1 year trial period, where the patient can revert to traditional Medicare and get Medigap without underwriting (preexisting conditions taken into account). Don't wait until 3 months before Medicare to start thinking about this. The biggest factor by far in rolling the dice is how healthy you are.
So what if I slip through the lay-off cracks by some miracle and decide to work until I’m 69? Do I still have to go on Medicare when I’m 65?
And the subsidy available till the end of this year only, is no longer available in '21 forward, plus, it's known to be out till '23 I believe, but may get more funding or whatever it takes, to provide for longer, that is an unknown at this time.
On Facebook, there is an AT&T Retiree group yo ucan join, I'm on it, though not retired, or forced retired yet but expect to be. Anyway, there is a lot of talk about AON, and various issues and lack of clarity, etc. Please go join and search and ask questions, lots of nice helpful people there, admins, and retirees.
@op-you need to sign up for Medicare 3 months before you turn 65, otherwise you will get hit with penalties.
I retired last year at age 66 (L2 management) and I signed up for Medicare Parts A and B. I also went through AON exchange for Medigap supplemental and Part D (d–gs). Unfortunately, I retired in October during Open Enrollment for Medicare and getting help from AON in signing up for the supplemental plan (I had to go through them to get the company reimbursement) was a nightmare. They were overwhelmed at that time of year with the regular open enrollment customers. I finally got it set up correctly and I am eligible for the $2700 reimbursement account from the company - at least for the next few years. There is no guarantee that the reimbursement account will be offered after the next 3 years or so (can't remember exactly when AT&T will review that commitment). AT&T may or may not continue to offer it after that date. Keep in mind that depending on your income in retirement, you could be subject to IRMAA which is a surtax over and above the regular Medicare premium. I am paying substantially more in premiums now than I paid as an employee (with no dental) although it is not a high-deductible plan like the one I had as an employee. All I can say is the whole Medicare thing was a steep learning curve for me. Hope this helps.
sounds right att retiree health care is only good up to medicare. guess they have that way so they can surplus people at 50. me I got hired after they stopped giving that benefit just gave me one more reason not to stick around.
If 58 you will get subsidized until 65. Then you only get the $2700 subsidy.
Correction, they will no longer receive or qualify for the subsidy if someone retires after January 1, 2021 if you’re turning 65. It’s $2700/yr. for a single person, $4800 if you’re married. This is really something to think about if you’re turning 65 this year because it’s $225 per month to be used for your medical insurance and/or any out of pocket expenses.
There’s still a benefit subsidy that att employee said will no longer receive after this year and that is to cover your Medicare supplement or any out of pocket expenses. It’s $2,700./yr. for me being occupational, not sure about management. You receive this as a lifetime benefit. That’s basically it after 65 years of age. It goes away if you retire after this year, don’t forget!
How can so many people with good jobs not understand the company benefits/medicare. I would suggest eveyone who is left look into it. Medicare 80% is free. You pay about 148.00 a month each for part B. This still doesn't cover d–gs, dental, etc then you can buy additional supplements. Mine is 300 a month but everything is pretty much covered. I was a manager and ATT insurance ends at 65.
The supplemental AON thru AT&T is a much better deal than going private. They will also offset a portion of the Medicare cost. But, it’s still ~2x more expensive than AT&T retiree health care.
OP here. Wow, thanks. Mind blown. Has anyone purchased the supplemental policy through AT&T? Is the AT&T benefit through Aon Retiree Health Exchange discounted is some way? or better in some way then going on the open market?
Layoff folks, keep this in mind when considering buying into the Management Transition Program (MTP) because giving up 50% of your severance to buy into something that is only going to last until your 65 years old may not be worth it.
The Management Transition Program is a component of the severance plan that allows employees, who are within 24 months of eligibility for retiree benefits under the health and life insurance benefits plans in which they participate at termination, to elect either
(1) eligibility for retiree health and life insurance benefits, retiree discounts on AT&T products/services, and 50% of the severance pay for which they would otherwise be eligible, according to the provisions of the Management Transition Program (MTP) OR
(2) 100% of the severance pay for which they are eligible based upon the provisions of the AT&T Inc. Severance Pay Plan, but not both.
True.
Once you turn 65 you can no longer by covered by the AT&T Health Plan so you would need to sign up for Medicare (parts A and B). Once you have signed up for Medicare you can then sign up with the AON Retiree Exchange at https://myretireehealthexchange.com/ and select either a Medigap or Medicare Advantage plan. If you are eligible you can sign up for an HRA (Health Reimbursement Account) which AT&T will fund up to $2700/year and you can use this to pay for medical expenses, Medigap and Medicare part B premiums. It's quite complicated. I got a letter from AT&T HR in January saying they were going start up an AT&T MAPD see below snippet:
I am excited to announce that beginning in 2021, you will have additional choice from AT&T
when selecting your health care coverage for next year.
Since 2015, AT&T Medicare-eligible retirees and eligible dependents have been able to
enroll in health care through the Aon Retiree Health Exchange (Exchange). While the
experience with the Exchange plans has been overall positive, as part of our continued
effort to support our retirees, we know that having more choice can improve that experience.
As a result, we will be expanding your offering in 2021 to include a new AT&T-sponsored
group Medicare Advantage Pr-scrip-ion D–g (AT&T MAPD) plan in addition to the option to
remain with the Exchange.
The new AT&T MAPD option is an integrated program, covering both medical and
pr-scrip-ion d–g benefits in one plan, and will be offered directly by AT&T (not through the
Exchange) during annual enrollment this fall.
Correct.... all in, it’s still ~2x more expensive. Trust me, my wife would gladly go back to her old AT&T retiree health care....
OP, you are correct—AT&T retiree health benefits end when you turn 65 and qualify for Medicare, but you may be able to purchase a supplemental policy through AT&T, to supplement Medicare.
You need to sign up for Medicare at 65.
So wait a min is right, you're telling me, a 58 y/o employed but expected to get laid off in '20, I'll retire and and have the ATT Healthcare, with the subsidized medicare thing out till 2023 (3 yrs there), then when I turn 65 (7 yrs later, but 3 was on them, so last 4 all on me) then I register for Medicare, and poof no more AT&T provided healthcare coverage? IS that right? And I guess the only healthcare coverage I would have is only Medicare? Unless I really pay through the nose and have a private secondary healthcare insurance which is mostly unaffordable?
That is exactly what happened with my wife when she turned 65. Prices with Medicare are higher and if you don’t sign up you have to pay government a penalty. Anyone that thinks Medicare for all is a good thing has no idea what they are talking about.
That's correct.
It sounds like all of us who thought we would have health care benefits after we retired lose retiree medical when we are 65 years old. Tell me it ain't so.