UPS Health Benefits Shock for Retired Union Employees

[UpstateNYUPSer(Ret)]

Which means he'd pay higher co-pays and maybe have things that aren't covered in the prescription end..

With one plan for example.....you could pay $1000.00 for hip replacement where another plan you pay $0. It takes a lot of studying of your personal needs and situation. Why do you think people start to look at Medicare options 3 months ahead of time?

Isn't that what I just said?

 

[scratch]

Re: Health Benefit Shock

Why? Are you telling us that finances may dictate when you retire?

Ideally, I would like for my pension payment to cover my health insurance and monthly living expenses without touching my other investments. I do have money in the 401K, an IRA, and some mutual funds. I was hoping to use that money to travel and enjoy retirement, not to be forced to pay for insurance with it.

 

[Inthegame]

Re: Health Benefit Shock

In many supplements UPS controls retiree H&W but the rates are contractually negotiated. Just speculating here but...

What if...UPS has made it clear to the IBT that the heavily subsidized $50 a month retiree H&W rate must go up?
What if...to cover the real costs UPS has asked for an even larger increase than reported in this thread?
What if...retiree H&W utilization rates and costs are higher than actives (on a per capita basis)?
What if...the IBT for years has insisted UPS leave retirees alone?

Wages and benefits haven't been discussed yet at the National negotiations, so nothing has been agreed to but the desire of raising UPS retiree H&W rates has been around long before the Affordable Care Act.

 

[stealth8]

I beg to differ, the cost of a college education has by far outpaced the cost of health insurance in the past 10 years

 

[Catatonic]

Re: Health Benefit Shock

In many supplements UPS controls retiree H&W but the rates are contractually negotiated. Just speculating here but...

What if...UPS has made it clear to the IBT that the heavily subsidized $50 a month retiree H&W rate must go up?
What if...to cover the real costs UPS has asked for an even larger increase than reported in this thread?
What if...retiree H&W utilization rates and costs are higher than actives (on a per capita basis)?
What if...the IBT for years has insisted UPS leave retirees alone?

Wages and benefits haven't been discussed yet at the National negotiations, so nothing has been agreed to but the desire of raising UPS retiree H&W rates has been around long before the Affordable Care Act.

However, the Affordable Care Act has provisions in it stating that only active employees are regulated.

 

[toonertoo]

Re: Health Benefit Shock

What if I am active but they say I am not.

 

[UpstateNYUPSer(Ret)]

Re: Health Benefit Shock

Ideally, I would like for my pension payment to cover my health insurance and monthly living expenses without touching my other investments. I do have money in the 401K, an IRA, and some mutual funds. I was hoping to use that money to travel and enjoy retirement, not to be forced to pay for insurance with it.

Scratch, my apologies---this was not directed at you on a personal level.

 

[The Milkman]

Re: Health Benefit Shock

When you said that you "switched plans" does this mean that you went from the Teamster multi-employer plan to the UPS plan? Are the retirees still covered by that Teamster plan facing a similar premium increase? I would guess that they are not as their plan is administered by the Teamsters, not UPS, and therefore would not be subject to any increases imposed by the company. Something tells me you screwed yourself when you switched plans.

No I did not screw myself..Well before retirement age Ups was rolling out new plans..I use to have Aetna back then which was the so called Traditional plan that paid 80% of your bills after a family deductible...the plan included Dental and Eye coverage and Rx coverage..However in order to keep these same benefits I would have to pick a new medical plan... Option # 1 was Primary Care Physician Network at the time run by Cigna, Option # 2 was preferred Provider Network run at the time by BC BS... I chose Option # 2..Because we were all oriented in classes when all this came out, I believe around 2002..By chooseing option # 2 I would recieve when retired the exact same coverage as the tradional plan which included dental and eye and would have to switch to mail order RX service...If I did not select option 1 or 2 , and kept my Traditional plan that I had for about 20 yrs I would lose dental and eyecare upon retirement, and you also had to be on this "NEW" plan at least 4 years prior to your retirement. So thats why many switched to enhance the retirement coverage spelled out to us many years before we retired. Hope this explains it for ya

 

[moreluck]

Re: Health Benefit Shock

You keep referring to post-retirement while I am referring to the years leading up to retirement. With proper pre-retirement planning unexpected increases such as this are more easily absorbed and do not impact your retirement plans.

Where do you think the saying comes from....."We plan, God laughs" ??

The unexpected is what happens. Your decisions about Medicare last for a year before you are able to change. Talk about gambling!!! People need to be sure they have a "cadillac plan" to cover things or else they spend their retirement paying co-pays you didn't PLAN on instead of seeing the Riviera.

 

[The Milkman]

Re: Health Benefit Shock

Milkman is the money you pay out just for you or you and your spouse. I left in Nov. and that is about the same as what I have to pay out for Teamsters insurance for me and my wife. That is without dental or vision. But at least I knew it was coming when I left and had it in our budget. Would have been quite a shock to have that dropped in your lap when you are on a fixed income. More of the fallout of the Right to Work and people not choosing to join the Union.

My wife and handicapped son...........

 

[moreluck]

Isn't that what I just said?

You said switch to a lower cost plan ..........when at 65 (when Medicare comes) you are likely to need a better plan. No matter how healthy, at 65, stuff happens.

You can't preplan that because you don't now what will be available to you........until you are almost 65. The gamble also happens when you decide to let go of a plan, it may not be available if you want to go back. They just stop offering it.

I now have plan friend........but if I see I'm not using it and I change to a lower cost plan........Plan friend may not be available anymore.

Gamble!!!!.

 

[The Milkman]

Re: Health Benefit Shock

[QUOTE=toonertoo;1074158]I would ask that anyone who recieved these notices, black out the pertinent private info and display them here for all to see.


Not sure how to post...............Sorry

 

[The Milkman]

Re: Health Benefit Shock

Just Double click the picture..I guess I did it right..also the front page pf my Retirement package booklet

 

[UpstateNYUPSer(Ret)]

Re: Health Benefit Shock

Just Double click the picture..I guess I did it right..also the front page pf my Retirement package booklet

You did it right---all I can say is "wow".

 

[Catatonic]

Re: Health Benefit Shock

View attachment 8134

The formula in the wording here seems really, really expensive.
$6250+$742.50*12months*2you&UPS = total annual cost of $24,070 for insurance.
I am not familiar with Retiree cost of insurance but active employee is around $9,200/yr per person.

 

[serenity now]

Re: Health Benefit Shock

What if I am active but they say I am not.

is this about the overallowed?

 

[The Milkman]

Re: Health Benefit Shock

The formula in the wording here seems really, really expensive.
$6250+$742.50*12months*2you&UPS = total annual cost of $24,070 for insurance.
I am not familiar with Retiree cost of insurance but active employee is around $????/yr.

I Agree...seems really really expensive.............

 

[anonymous6]

I got the same letter. The price of $742.50 (for families) is per month billable in quarterly installments so Aug. 1 your insurance payment will be $2227.50. My initial take is that this is a contract negotiation ploy (contract expires Aug. 1) or UPS is counting on people to drop coverage in favor of Obamacare. The price doesn't change when you qualify for medicare, even though your coverage does. That means a husband and wife will be paying $495 per month for a medicare supplement.

did you call them?

 

[oldupsman]

No, I am not 65 yet. I retired in 2007 with 29 years of service, 25 as a steward. I have breakfast on a regular basis with other retirees. When you reach 65 your UPS healthcare becomes a supplement to Medicare. Retirees over the age of 65 will not get any kind of break on their premiums even though their UPS insurance will only act as a supplement.

That's the same deal I have. I haven't received that letter yet. Maybe tomorrow.

 

[Jones]

Re: Health Benefit Shock

The formula in the wording here seems really, really expensive.
$6250+$742.50*12months*2you&UPS = total annual cost of $24,070 for insurance.
I am not familiar with Retiree cost of insurance but active employee is around $????/yr.

I think you might be misinterpreting that bit about cost sharing, but I'm honestly not sure. If you are then the annual premium would be $15160.00, which is still pretty high but probably more in line price wise with the type of plan he has.