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CWA Local 4050/4090

220 Bagley
Suite 832
Detroit, MI 48226

Phone: (313) 963 - 1873
Fax: (313) 963 - 8577

Info Line

(313) 963 - 2160 ext-33



Dave Skotarczyk

Executive Vice President:
Troy Smith

Gerald Sokoloski

Vice President at Large Global Services:
Keith Valko

Vice President at Large National Units:
Mike Klein

Vice President at Large Special Services:
Anthony Swayne

Area Representative Global Services:
Jim Adamowicz

Area Representative Maintenance:
Artistine Taylor

Area Representative Provisioning:
Ken Williams

Mike Killewald

Announcements :  ATT Retiree Healt Care 2017
Posted by Dave Skotarczyk on 2016/9/21 19:18:10 (297 reads)

AT&T refuses negotiate for retirees. Our Union pushed back on many items including the size of the cost increases. Unfortunately, these concerns fell on deaf ears. Below is an overview of the health care for ATT retirees for 2017.

A series of changes to AT&T’s retiree health benefits program will be implemented effective January 1, 2017. The changes are summarized below.

1. For non-grandfathered Medicare eligible retirees:
a. The exchanges administered by Aon Hewitt for AT&T remain in place.
b. HRAs are funded at the same levels as previous years -- $2,700 for the retiree and $1,500 for dependent.
c. Pre-65 Medicare eligible retirees (those on Medicare disability benefits) will be covered by the exchanges effective 1/1/2017.

2. For non-grandfathered pre-65 (pre-Medicare) retirees enrolled in the traditional health plans:
a. Currently, about 60% of CWA's 43,000 pre-65 retirees are enrolled in the regional traditional plans.
b. Premium contributions will increase due to health plan costs exceeding the cap on company contributions of $12,500. For these plans, contributions increased as follows:
i. single coverage from $192 per month in 2016 to $218 in 2017
ii. retiree plus one from $588 per month in 2016 to $733 in 2017
iii. family coverage from $686 per month in 2016 to $867 in 2017
c. The Legacy T plan will also experience some increase in copays and out of pocket max as a result of built in escalators included in the negotiated plan. Copays for office visits will be $25, up from $20. Copays for hospital admissions will be $225, up from$220. The ER copay will remain the same at $85.
d. As a result of plan design and contribution changes, pre-65 retirees are now picking up about 40% of health costs under these plans.

3. For non-grandfathered pre-65 (pre-Medicare) retirees enrolled in the Select Med Options:
a. Select Med Options 1 & 2 are available as higher deductible/lower contribution cost alternatives for pre-65s.
b. Currently, almost 40% of CWA’s 43,000 pre-65 retirees at AT&T are enrolled in the Option 1 plan, and fewer than 1% are enrolled in the Option 2 plan.
c. For Option 1, monthly premium contributions will be increased as follows:
i. Single coverage from $40 per month currently to $45
ii. Retiree plus one coverage from $120 per month to $145
iii. Family coverage from $140 per month to $170
d. For Option 2, monthly premium contributions will be as follows:
i. Single coverage will decrease from $25 per month to $20
ii. Retiree plus one coverage will increase from $75 to $80 per month
iii. Family coverage will increase from $85 to $100 per month
e. Under the drug plans for both Options 1& 2 there will be decreases in generic copays, modest increases in formulary copays and substantial increases in non-formulary Rx copays,as follows:
i. retail generic will decrease from $17 to $7
ii. retail formulary will increase from $41 to $54
iii. retail non-formulary will increase from $66 to $146
iv. mail generic will decrease from $41 to $15
v. mail formulary will increase from $102 to $108
vi. mail non-formulary will increase from $162 to $293

4. Dental Plans for Non-Grandfathered retirees
a. The retiree dental plan offerings will be updated. There will be a Bronze, Silver and Gold plan with deductibles of $75/$50/$25, respectively; coinsurance of 30%/20%/10%; and maximum benefits of $1,500/$2,500/$3,500. All plans will have a maximum $2,000 orthodontia benefit.
b. The new dental plans will have a coinsurance design rather than the fee schedule now in place. The fee schedules in place have not been updated for years.

5. For Grandfathered retirees, Medicare and Non-Medicare:
a. AT&T will be changing coverage for Grandfathered retirees – those who retired before the particular cut-off date for application of the retiree health care cap.
b. The grandfathering dates for each unit are as follows:
i. Legacy AT&T – 3/1/90
ii. Southwest – 9/1/92
iii. West – 1/2/91
iv. Midwest – 1/1/93
v. East – 1/1/90
vi. Southeast – 1/1/92
c. This is the first time that the company has made adjustments to the plans for this group of retirees.
d. The company is moving all “grandfathered” retirees into a Medicare Advantage PPO plan administered by United Healthcare. Non-Medicare retirees and dependents will be moved into an AT&T Advantage PPO plan. Retirees in this group who are enrolled in HMOs may continue in the HMO or choose to move into one of the Advantage plans.
e. No SPDs or other plan documents related to this plan have been provided to the union.
f. A communication from the company to the retirees this month provides an overview of the plan:
i. The new program will not have a deductible or coinsurance, but will rely on flat-dollar copays. The amounts of the copays were not provided.
ii. There will be no premium contributions.
iii. Prescription drug coverage will remain the same.
iv. The retirees’ share of medical expenses will be comparable to what they pay today, according to the company.
v. More detailed information will be forthcoming in October.

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