Can someone explain what the $2700 subsidy is? I am not very well versed on medical during retirement and am trying to educate myself before the time comes.
Does the annual subsidy of $2700 go towards your deductible/whatever Medicare doesn’t cover?
My understanding is is that I will still probably need to purchase a supplemental plan in addition to Medicare.
Don't forget as I haven't seen it mentioned on this thread - this benefit is NOT available to all employees. It is specific to which Ma Bell you were originally hired under and what date. For BLS folks, you had to be hired before 1997 (don't recall the actual month/day). I thought I would have this benefit as several co-workers retired in the past few years and almost all got it. Someone that only had about 10 years of service did not - that is when I found out since I was hired in 98 I wasn't eligible. As others have stated, this benefit is also not guaranteed forever - only until 2023 currently. It can be pulled away at any time after that. Also - you have to retire by year end this year as has already been stated.
@1DVX Not really. If they planned on retiring next year than it is a smart think about the implications. Its 2700 per year. Could end up being a decent chunk of change.
If your decision whether to retire or not is based on the $2700 per year then you've got some issues.
I had a former teammate that was "retired" the round of surplus before me. The good thing for him was that he was over 65 and ready to go. He had pre-set Medicare and Soc Sec on time and when he was off-payroll that transitioned in to effect. He explained to me there was an HRA (Health Reimbursement Account) that the company established and it was used to reimburse qualified employees their Medicare/Medicare Supplemental monthly costs. He said for some reason/law the company couldn't directly pay that, so he would pay the costs monthly, and then the company would reimburse that amount. We were considered "management" employees. He also said the company makes no implicit guarantees they will continue it beyond what is already stated. I'm not old enough for Medicare yet for a while so I don't know 1st hand.
The $2700 is money allocated to Medicare eligible retirees to pay for Medicare supplements and plan D, or any other non covered medical expense. Today it is only garunteed thru 2023, at which time the company will review the program. Anyone who retires after 1-1-21 will not be eligible. Spouses get a $1500 allotment. Unused dollars can carry over until March of the following year.
I have been reading up on medicare since I am at retirement age. It seems that basic medicare has no limit in the amount of money that it could cost you. One expensive medical treatment, and you could be wiped out financially. That is why you need a medicare supplement which has maximum out of pocket cost for you. And I think that is what the $2,700 is for. I tried to get answers from human resources once before and they were not forthcoming.
“I'm 58 and have 40 hrs service if I elect to retire by the end of the year will I still be entitled to the subsidy 7 years later when Medicare kicks in? I’m Craft
5 hours ago by Anonymous | 2 reactions (+2/-0)
Post ID: @zhp+161sToCY”
You qualify if the company decides to fund the subsidy. As it stands now the company has promised to fund it through the 2023 calendar year.
@mhn - AT&T can remove this benefit from retirees at anytime in the future.
The 2700 will apply only if you retire before January 2021 from what I understood. After that this 2700 will no longer apply. AT&T will pay your supplemental Medicare up to 2700 anything in excess you need to cover. This is 2700 per year again only if you retire before January 2021.
I'm 58 and have 40 hrs service if I elect to retire by the end of the year will I still be entitled to the subsidy 7 years later when Medicare kicks in? I’m Craft
The Facebook group “AT&T Retiree Issues” Is a good resource. Lots of different people with lots of different issues.
This is "@mhn" - I should mention I am a manager - I don't know what the subsidy rules may be for non-management or union or not or if it may vary based on original hiring company or based on state. Unfortunately when it comes to retirement benefits it seems a lot of factors may come into play and you may get general ideas from a forum such as this but then need to confirm with HR for your situation.
I had called HR a few days ago and from what I recall the subsidy is $2700 for the retiree with an additional $1500 annual available for a spouse, so $4200 annual max per household. But to be eligible for the subsidy (managed by AON) don't you have to retire before the end of 2020? And even for those eligible for the subsidy and using in now - isn't it true ATT can elect to terminate the subsidy at any time?
The unused portion does accumulate and can be used in future time periods.
Okay, you have to submit by March, but it is a fixed annual amount. Any unused portion does not accumulate year over year.
It does carry over, at least for occupational. For 2020 expenses, claim by Mar 31, 2021. But if there is a remaining balance, 2021 expenses can be claimed.
$2700 annual max can be used for Medicare supplement premiums, copays, pr-scrip-ions, any out of pocket medical expense. Save all records and receipts, submit online. If you don’t use the $2700 per year, it does Not carry over.