American Airlines Retiree Medical Changes For Those That Retired Before 2012 Bankruptcy
Proposed changes take effect Jan. 1, 2021
On November 5th, 2020 American Airlines had a conference call with the Pilots Union, the Flight Attendants Union, TWU, Local Unions, and I was invited to attend. The following items were discussed with the following answers:
- Retirees that have NOT enrolled into Medicare Part A & B:
- American Airlines has agreed to make special exceptions allowing members to defer their Part B until ready.
- Retirees and Spouses under the age of 65 and NOT on Medicare:
- Will continue their coverage under the retiree standard medical plan
- Will continue to pay for Health First next year.
- Retirees and Spouses who have exhausted their retiree medical and are now receiving benefits under the HealthFirst Plan:
- No changes for these members and spouses
- If you have received a letter it can be ignored, your coverage will remain unchanged.
- Advantage Plans will not be offered.
- Remember that is it possible that those on Health First will pay premiums and the spouse or retiree moving to medicare Advantage plan will not.
- Employees and Spouses On Medicare and under 65:
- No Change, you will stay on the standard medical plan
- You will continue to pay Supplemental Medical next year.
- Retirees under 65 on Medicare (Disability):
- No changes you will continue Standard Medical plan
- You will continue to pay Supplemental Medical next year
- The Supplemental Plan that we now pay $180 per person or $360 for a couple:
- The Company has agreed to suspend these payments, if we move back American will reactivate them for all members.
- Only those members going to the Medicare Advantage plan will not have to pay next year.
- All those who pay Health First, whether is is for those under 65, under 65 and on Medicare, or those on Health First, will continue paying premiums.
- It is possible one of you may continue paying supplemental medical due to exhausting your medical and the other will not have to pay if on the Medicare Advantage plan.
- Members with Tri-Care or VA Benefits:
- Tri-Care For Life will coordinate with the new American plan.
- V/A Benefits due to disability can be used even though you will have Medicare Advantage plan.
- Champs -- For those with this veteran benefit, you will have to check whether this will affect your drug benefits.
- Retirees with Med-Gap Insurance (Supplemental):
- Med-Gap plans: while they don't coordinate with Medicare Advantage plans you can still have both plans.
- This would allow those who are not sure whether to leave their Med-Gap plan or OPT our of the American plan to see which of the plans work better for them. Remember once you OPT out of the American Plan you cannot get back in going forward.
- This will also give you a drug plan rather than purchasing one for next year, again allowing you the option to make the best decision for you and your spouse.
- The Advantage Plan has NO lifetime max, $1000 max out of pocket (hospitals)
- The Company will be providing the following plans as replacements for over 65 retiree medical:
- Standard Medicare Advantage Plan including drug coverage:
- You will be automatically enrolled here if you do nothing.
- Retirees who now pay nothing will continue with no premiums
- Retirees who now pay premiums will have a cost – each group has been notified.
- No Lifetime Max, $1000 max out of pocket (hospital)
- Medicare Advantage Plan Plus – This would include an enhanced Drug Plan:
- Must choose to enroll in this plan.
- Retirees will have an additional cost of $58 or whatever price each group has been told for this plan.
- Drug Coverage will be the ONLY difference between plans, Medical coverage is the same.
- These Plans are Group Plans that will be good Nationwide and coverage will remain the same when out of state; unlike plans offered outside of Group Plans.
- Vision Coverage included – Once a year – Exam and glasses
- Hearing Coverage Included
- Silver Sneakers membership (Gym Membership)
- Company Enrollment Period To End November 20th, 2020
- The company will allow people until November 20th to make whatever changes to their medical plans.
- If you OPT out of the plan this will give you the chance to go back until November 20th, 2020.
This is a continuously changing event, but just know that RBAssociation is here for you. I will continue to monitor plans and any further changes. If you need help, please call me. RBA is not going away, as long as you need assistance I will be here.
Please check website for Updates: Rbassociation.com
