I was told we are exempt from life time limits
UPS Health Benefits Shock for Retired Union Employees
- Thread starter kumet
- Start date
Catatonic
Nine Lives
You were probably told that by a steward ... need I say more?
Active employees' company provided healthcare cannot have annual or lifetime limits per the ACA.
Company or Union provided retiree (non-active employee) healthcare insurance is exempt from this provision in the ACA.
Ms.PacMan
Well-Known Member
According to the Health and Welfare packet there is no lifetime limit if you pick the HMO option for retiree insurance. $500,000 for the PPO version. If neither of these is an option in your area then you will receive traditional insurance.
It doesn't say if there is a lifetime limit on traditional insurance.
All subject to change I'm sure.
Catatonic
Nine Lives
Good point ... I was not posting about UPS retiree insurance but about the ACA.
UPS retiree does not have a cap at this time if I remember the memo from last year.
As you say ... that can change.
Some states have programs to help people not covered above a capped amount.
Ms.PacMan
Well-Known Member
Nothing has changed other than you now becoming aware of the cap. You should have this booklet at home somewhere. Sorry for the bold, it pasted the text that way and I can't change it for some reason.
There is a new lifetime maximum that begins when
you retire and become eligible for benefits from the
UPS Health and Welfare Package for Retired EmployeesThis is copied and pasted directly from the Health and Welfare packet and is dated 2006. It goes on to say....
The Lifetime Benefit Maximum
Up to $500,000 in lifetime medical benefits (unlimitedin HMO Option) can be paid for each person participatingin the UPS Health and Welfare Package forRetired Employees. Only benefits paid while youreceive coverage as a retired employee count towardthe $500,000 total. The lifetime maximum includesyour medical benefits and benefits you receive fromthe Solutions program for mental health/substanceabuse care. Each January, up to $1,000 in individualbenefits paid during the preceding year will automatically
be restored.
oldngray
nowhere special
Nope, I never got that booklet nor any literature explaining that. Nor did anyone else in my area that I talked to. As I have seen other people say, every person who retires gets treated as if they are the first person who ever retired. I got my pension the first month (although it took them 5 months to figure out they owed me another $1.50 per month) but it took almost 6 months to get me health insurance straightened out. I finally got someone to figure out that my status was entered in database incorrectly, and the only person with database access in my building was never available nor returned any calls. I finally had to go over his head to his boss to get it straightened out. Meanwhile at UPS benefits they would tell me they had all of the required paperwork and then sent me a letter cancelling my insurance. They admitted I was qualified but had to let them send me a refund check then send my premium back to them. Never any explanation why they screwed up so badly nor any apologies. And another driver who retired from my center a few months before I did went through the same problem. And the union? The "helpful" BA claimed I was the first one who had problems when it was happening to almost everyone.
Ms.PacMan
Well-Known Member
All active employees (at least with UPS insurance) get a Summary Plan Description in the mail. In that booklet there is a small section on retiree benefits.
For current employees with UPS insurance who would like to see the Summary Plan Description booklet
Log in to Upsers
Click on My Life and Career
under My Health, click on Health Care Benefits
look for UPS-administered healthcare benefits
click on Directory of Benefits ------> a separate page with an extenal link will open, click on the link
enter your SSN
on the left of this page, click on Summary Plan Description
under plan details - read your summary plan description
click on Health and Welfare Package SPD
a pdf file of the Summary Plan Description will open and if you scroll down the index on the left you will find the section for retiree benefits - click on that and it will take you right to that page in the pdf file.
UpstateNYUPSer(Ret)
Well-Known Member
...which is why she specifically said active employees...
oldngray
nowhere special
My bad. I missed the active part. But the talk of previous caps and PPO vs HMO options did not apply to me in past I am fairly certain. There is no doubt that the plans are changing and it is not the same everywhere ( I think ). And in my letter there was no mention of "Each January, up to $1,000 in individual benefits paid during the preceding year will automatically be restored."
Ms.PacMan
Well-Known Member
You only retired a year ago so you would have received that booklet at some point. I'm not trying to bust your balls for the oversite but I want to make sure ppl reading this know that the information is available.
I feel for you regarding the mess when you retired and we've all heard that a lot of retirees have a difficult time. But if the cap worries you then maybe you could contact the plan administrator and ask if the HMO insurance is available to you and if and when you could switch. I suspect that the deductibles for the HMO plan would be higher though. You would need to figure out what would be best for your situation.
Ms.PacMan
Well-Known Member
I found this document today explaining the ACA to union negotiators. If you look at #7 Early Retirement Reinsurance Program. UPS is on the list of companies/insurers who have applied for reimbursement of early retiree claims (under Georgia) http://cciio.cms.gov/resources/files/Files2/02172012/errp-posting_feb2012.pdf.
I did notice some Teamster funds also on the list.
I did notice some Teamster funds also on the list.
Ms.PacMan
Well-Known Member
I don't know how to reconcile the fact that UPS will receive a gov't subsidy for early retiree claims and yet wants to increase their rates. Like most ppl I think the increased premium letter is just a ploy or perhaps a glimpse of the future-------->It is predicted that health care rates will likely rise 6.5% yearly and it is also somewhat suspicious that that $6250 compounded yearly at 6.5% for 6 years (until the PPACA goes fully into effect in 2018) is $9118, a figure very close to the $9200/person cost that the new rates in the letter perhaps are based on.
Number 4. in that document I linked to gave me the greatest pause. (This would apply to active employees and I assume retirees - different plans though.)
Specifically;
Coverage is considered unaffordable if an employer requires a contribution greater than 9.5 percent of family income or offers a plan that covers less than 60 percent of medical costs on average. Under proposed regulations, if self-only coverage costs less than 9.5 percent of income and an employer offers dependent coverage, then both employees and their family members are ineligible for subsidies regardless of
whether or not family coverage is affordable.
Central States has the lowest pension payout at $36,000/yr. The self only coverage at $247.50/mo is 8.3% of income and although the couple and family insurance plan rates are well above the 9.5% affordability guideline, the self-only rate would disqualify couples and families from receiving subsidized coverage thru an exchange.
I have so many questions....
Number 4. in that document I linked to gave me the greatest pause. (This would apply to active employees and I assume retirees - different plans though.)
Specifically;
Coverage is considered unaffordable if an employer requires a contribution greater than 9.5 percent of family income or offers a plan that covers less than 60 percent of medical costs on average. Under proposed regulations, if self-only coverage costs less than 9.5 percent of income and an employer offers dependent coverage, then both employees and their family members are ineligible for subsidies regardless of
whether or not family coverage is affordable.
Central States has the lowest pension payout at $36,000/yr. The self only coverage at $247.50/mo is 8.3% of income and although the couple and family insurance plan rates are well above the 9.5% affordability guideline, the self-only rate would disqualify couples and families from receiving subsidized coverage thru an exchange.
I have so many questions....
the 1st question i would ask the union is, how can u.p.s. get away with rapeing us like this?i didn't trust management there for 1 second the whole 32 years i worked there.i retired and got out the 1st day i was elgible.i had no idea they could screw us over this bad after retirement!it doesn't surprise me they would,i just didn't know they could.no matter how you do the math,they are absolutely screwing us.we can only hope the current employees, that want to retire someday, don't stand for this,and vote any new contract down that allows this b.s.!
The Milkman
Well-Known Member
beentheredonethat
Well-Known Member
I have a question for all as it pertains to voting down a contract. If the contract was not renewed, does that mean the portion of the contract that says UPS pays x amount for retiree benefits no longer needs to be enforced? I'm just asking a question re this. If this is true, you may want to reconsider the no vote, having to pay for 1/2 the cost of insurance after $6250 is a lot better then paying 100% of the entire bill.
Also, how do you reconcile the fact that the contract clearly states that UPS pays the first 6250 (as others posted) and then the cost is split 50/50. Based on the costs incurred from the prior years. (Again, I'm paraphrasing what other people said the contract states). Just because costs went up and UPS is using the wording of the contract, how is that raping the retirees?
I get that you don't like it. I don't like paying about 650/month now between my insurance and my HCSA each month. Where in the past (granted a long time ago). Health care costs me relatively nothing.
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