Attention, IBM Retirees:
Retiree Annual Enrollment begins October 25, 2012 and ends on November 16, 2012.
Very soon retirees will be getting enrollment packets in the mail. Take the time to thoroughly review your current plan benefits and costs and learn why many IBM retirees have enrolled in a Retiree Health Access (RHA) plan option.
Commitment to Providing High-Value Retiree Benefits
IBM continues to offer a wide variety of plan options, tailored to the needs of our retirees. Options include the Aetna MedicareSM PPO, HMO and Traditional Choice® Medicare Integration Plan options available through RHA.IBM has worked with RHA to deliver benefit plan options that provide high quality, comprehensive care at low cost.
Some Aetna plan options provide secondary coverage to Original Medicare for medical benefits only. Other Aetna plan options offer medical and pharmacy benefits. Some of these plan options are available at no cost for retirees and couples.
The RHA Advantage
Some Aetna plan options available through RHA may have the following advantages compared to other IBM plan options:
- Enhanced preventive benefits
- Unlimited prescription drug plan benefits along with comprehensive medical plans
- Drug copay limit to minimize your out-pocket-expense for prescription medicines
- Lower out-of-pocket costs for medical services
- Lower monthly plan premium contributions (For many retirees and couples, you may even have $0 premium contribution for both medical and prescription drug coverage)
- Care management programs centered on your personal needs
- Value-added extras at no additional cost
- Customer service team trained in serving IBM retirees
The RHA program makes this possible by combining the buying power of many large employers, such as IBM. As a result, these Aetna plan options can do more to help meet your coverage needs—at a great value.
See why many IBM retirees and their Medicare eligible dependents have enrolled in the RHA program. Beginning October 25th:
- Visit the IBM RHA retiree-dedicated website at : http://ibmrhabenefits.aetnamedicare.com, password “IBM65”
- Call Aetna at 1-866-795-2091 (TDD: 711) 8:00 am to 6:00 pm Monday – Friday, to talk to a plan specialist or attend an IBM retiree teleconference or meeting
Is this for US retirees only?
Since posting my reply for retirees to check on purchasing Individual health Insurance vs. utilizing the IBM retirement benefits, I have received some replies. To recap, my Future Savings Account was funding my benefits. When that was about to run out after being retired from IBM for three years, I checked into getting an individual policy here in Pa.I transitioned into the Insurance field after retirement and I am now a Senior Retirement and Estate planner. As such I am licensed for Healthcare policies among other products in the field as well. To my astonishment, I was able to purchase an individual health care policy, with a gap policy (that covers my 2500 deductable), that is almost the same exact policy that I had with Aetna through IBM, for 70% less than I was paying for my retirement benefits! ($446 a month vs. over $1800 a month). For those of you who are of Medicare age, you can utilize your Medicare Parts A&B insurance, and add a supplemental policy for as little as $124.00 a Month, that will give you coverage where you will only pay your Part B($99.70 a month) plus your Supplemental F plan premium, and never pay anything else. No deductables, no networks, no co-pays. I would like to put together a more comprehensive study to see if you can go this direction and save yourselves a lot of money. If you are still using your FSA account, stay on IBM benefits, at least until that account runs out and you have to start paying out of pocket. Here is what I would like to offer to this group. I realize this is a worldwide group, so this is just for USA retirees. I would love for about ten folks here in the US, especially for other retirees living in Pa., Md., Va., NY, and NJ to reply to this posting. I would then like to get some information on what IBM health benefits you currently have, and compare that to what you can get on individual policies. It is also possible for as few as 10 people to form a group as retired IBMers, and qualify for group rates. After doing the research I will post the results of the inquiry to see if going this direction is a lower cost alternative to remaining on IBM retirement benefits and paying out of pocket.
I am curious if your research is still in progress or if you have come to any conclusions or results. I am looking at retirement by the end of the year and will only be age 57 at the time of my retirement. The cost estimates provided by IBM to maintain the IBM coverage are really expensive. I have had more than one financial planner’s eyes widen and eye brow’s raise when they saw the number, since they have assured me that coverage can be found at a much less expensive cost (similar to your assertion). (Note: this included the IBM MoneySmart coach advisor I spoke to …).
Mike,
At 57 you are not yet qualified for Medicare. If you are in general good health, then getting an individual policy would be much more cost effective, than the IBM retirement plan benefits. What you want to ensure you do is to check on the balance in your FSA (future savings account). Even thought their rates bordered on the ridiculous, I was able to use my account to pay 100% of my health plan costs for around two years. If you have a pre-condition that may make getting an individual policy more difficult, or expensive, this situation will change in 2014, under the Affordable Care Act(Obamacare). Although, those of us in this business have no idea what rate increases will be put in place then. Bottom line, I was able to get individual health care policy, with a pre-existing condition, for far less than the retirement benefits. As a retirement/Estate planning perspective, I was able to take management of my 401K as well. It is now fully protected from ever losing a dime, and will provide an income for life, that I can not outlive. Don’t know where you reside, but I can help you through that process as well. The best advise I can give you is to be sure you work with a retirement specialist, not a broker, or financial planner. Their job is to grow assets while you are in Accumulation mode. What you
Joe – many thanks for the reply and information … it is very helpful, I have another 9-10 months to investigate and plan before my retirement date, so your insight is appreciated …
I found the IBM FHA plans, while much more expensive than employee plans, a better deal than the open market. Whatever you decide to do, compare cost and benefits between plans. Be sure you have an annual cap on out of pocket expenses and adequate prescription coverage (uncapped like employee plans) should you get an expensive disease or injury. For me, the IBM EPO was the best choice. Also be cautious of someone who sells something as they stand to benefit (make money). Read Jane Bryant Quinn’s books/website, visit the Boglehead forum website for advice. Visit ehealthinsurance.com for insurance plans in your area. The advice seems to be to stay clear of variable annuities and life insurance “stuff” as income vehicles, and caution tying up too much now in immediate annuities given such low interest rates.
frannie — Thanks for the advice / insight …
I chose between an IBM Aetna RHA plan and schedule F, both being zero out of pocket for Medicare covered USA healthcare. I did not go with schedule F because there is really no out-of-USA coverage, whereas I was told by an Aetna person that the IBM Aetna plan has strong such coverage including evacuation which leaves a stronger sense of no hassle security beyond a separate travel policy purchased per trip/cruise. Also, schedule F premium rises with age. All F plans available in NJ had very high premiums for those in the upper ages relative to age 65 – it felt that rates at age 65 were a teaser rate. IBM told me that the IBM Aetna plans charge the same premium for everyone (I assume in a region). Granted no IBM retiree plan covers the possible 15% extra that can be charged by Plan B providers if they do not participate in Medicare like plan F (and G) does. These areas are especially all important to those with FHA access only, who pay the full premium, whether Medicare eligible or early retiree (who might get help help with the ACA exchanges in 2014 – a question however if the availability of the FHA plans make early retirees not eligible for help in the exchange).
What premium are you going to be paying for your plan? What was the premium offered for an F plan? The Aetna agent should have informed you that an F plan has foreign coverage benefits of up to 50,000.00 built in. This is on an 80/20 payout percentage. While it is true that F plan rates are based on the age you sign up at, and are subject to “attained age” increases annually, historically Medicare Supplement increases are lower than traditional health care rates. I do not know what part of NJ you reside, but I used a zip code for urban NJ to determine the cost of an F plan on an individual basis. For a 65 year old your monthly rate would be $152.52. This assumes you are a non-smoker. As you are probably aware, with an F plan you would pay only your Part B medicare portion of 97.90, plus the 152.52. There are no deductables, referals,networks, etc. If you could reply and let me know what rates you signed up for, and your zip code, I can confirm your Individual rate for an F plan. If you live in a more rural area of NJ, your premiums may be lower. Thannk you for sending me this information. I look forward to your reply.
1 F plan premium is about the same as IBM, another is much higher. I am 65. If I were in my 80′s the F plans are much higher (the IBM plan is the same). One can get plans-rates at Medicare.gov. I have agents so know specifics. The F plan has weak travel, you pay 20% uncapped (scary) without evacuation as I recall, meaning be smart and buy a travel policy per trip. Both IBM and F have no deductibles – co-pays, any doctor, no PCP, no referrals. Aetna has some extras like travel. Both require paying Part B and Part D.
Actually, the F plan travel is worse. You pay 20% with a low cap of $50000, then you pay 100%. A casualty overseas can be hugely expensive. Getting flown out – evacuated – to a quality hospital and if really bad off getting home to the USA. So if you have Plan F, be smart and at least get a separate travel policy for any trip, cruise. If you are spending thousands for the trip, a few hundred for travel insurance seems a good idea. Just get a policy with a good company.
Actually an MASA policy is the best route to go to cover emergency medical transportation. The plan runs about 300 dollars a year for a family. They will not only fly you or a member of your family back on private transport, but will pay to have your family, even your pet, brought back, as well as any vehicle (if you are traveling somewhere you drove to), or even cover local costs. Medicare is increasingly deeming local ambulance rides as not medically necessary, on the back end. I have a client who was billed almost 400 dollars for ambulance ride, as he had chest pains and thought he may be having a heart attack. Turned out it was some form of severe indigestion. His MASA takes care of that bill as well. Thanks for the reply, and feedback. I will use your premiums as part of the study I am doing. I am 8 years away from Medicare, and my IBM option was so much more expensive, I could not justify paying it.
Then, there are the zero premium Medicare Advantages HMO plans on the open market that also include Part D coverage, Aetna being one insurer in NJ. One just needs to weigh the options and compare coverage and decide what is important to you..
Note if you leave an IBM plan and choose a plan outside IBM like schedule F, you cannot get back into an IBM plan if you are “Access Only” or if your account value is zero.
That is true. But it raises the question that if I can get a plan that actually has better coverage and I can save $1400.00 a month, why would I want to go back. I am not yet of medicare age, and do not have the option of electing a Supplemental F plan.I am sure the gap in premiums is not as wide if you are medicare eligable.
A good point. Pre-Medicare (early retiree) plans at IBM (FHA access only who pay the full premium) are very expensive to get good coverage. Lower cost plans have limited benefits and very high deductibles, and no (or very low cap) drugs. I took EPO to get drugs and no deductible, but had a limited network and paid 20% (or more) of everything. However, I did not find anything better on the open market via agents or ehealthinsurance (like Medicare.gov). It may be within IBM there is an advantage for a “self only”, and family plans may be different.
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It seems the way the aetna plans are written they only cover what medicare covers.. they are not secondary… So for example if you have a diagnosis that medicare does not cover or chooses not to pay aetna does not pay either.. where as IBM supplemental plans do pay… Example if your ripe old age you get admitted because you are dizzy at a hospital and they find nothing wrong (other than basic old age ) medicare does not pay… and aetna does not pay either apparently… whereas IBM pays as a supplemental…
Peter,
My second career, since accepting a bridge to retirement, is in the insurance business, specifically, as a senior Planning specialist. As such, I am a certified in Medicare. A supplemental, or “gap” policy, will only pay benefits for service that Medicare deems as medically necessary. For example, if your doctor orders some blood tests, and Medicare determines, that one or all of the tests were not medically necessary based on their rules, then a Medicare supplement, will not pay anything as well. While I saw a comment posted that talked about Medicare Advantage plans, they operate under a totally different set of rules. If you are insured under an Advantage plan, you are not actually on “Medicare” benefits. You are on a private policy that is subsidized by Medicare. Basically, the $99.70 per month that you pay for your Part B coverage, along with some additional funds for Part A benefits, etc. are paid to the Insurance Company by Medicare. While it is true that their plans must be overall the equivalent of being on traditonal Medicare, they are free to set their own policy on what the cover, what they don’t, what co-pays there are, etc. Unlike traditional Medicare coverage with a supplemental, many of these plans have networks, as small as the county your reside in, referals, co-pays, etc. I am licensed to market Advantage plans, but will not put any of my clients in one, as I can site many cases where folks have gotten substantial bills for services provided, especially if out of network, that would have been covered entirely, or close to it, depending on which of the 11 available supplemental plans you select. As mentioned before, I am soliciting cost and covergae information from IBM retirees, to see if staying in these retirement plans is beneficial, on the whole. I can tell you, if you are not of Medicare age, the premiums on Retiree Major Medical, vision, and dental plans at this point of my assessment, are in no way competitive with the open market. In my own case, when my FSA ran out I would have been paying $1400 more per month, than I am since moving to a private plan with equvalent benefits. This does not seem to be the case with their “Medicare age” plans. If you would care to forward me your personal situation. I would love to add it to my research, that I plan to post when completed, in the next sevearal weeks. If you wish to contact me directly, I will be happy to provide you with my persoanl contact info.
My comment about Advantage plans was accurate, they must offer benefits that traditional Medicare offers, and can add to that. A reason to not buy one is that rules for service differ (in-network HMO / limited expensive out of network PPO,usually PCP required and referrals), plus a high out-of-pocket cap along with high co-pays for everything. Also consider that if you choose an Advantage plan now (low costs if healthy), you may not be able to get back into an IBM plan or a Medigap plan later when you are older and sicker.
Even though I found the early retiree plans expensive compared to employee plans, they were still slightly better than open market plans (considering both cost and benefits) compared via both agents and ehealthinsurance.com. Beware open market plans that seem good, but have no drugs and/or high deductibles and/or high copays and/or no annual maximum cap.
If you are admitted to a hospital, it would only be because doctors determined the proper codes based on symptoms that would cover costs. I wouldn’t worry about that.
Yes, Medicare pays 80% of what they cover when you purchase Parts A and B. You pay 20%.
You can buy secondary (supplemental) coverage to pay for some or all of your 20%. Medigap plans offered on the open market by insurance companies (standardized plans with letters such as F and G) and the IBM Aetna Integration Plans are all secondary to Medicare.
Company plans are custom plans. The IBM Aetna Integration plans are secondary to Medicare. Integration Plan A is like Medigap Plan F and pays the full 20% that Medicare does not pay. But as a company plan, there are also added benefits beyond traditional Medicare.
Instead of the above secondary plans, you can buy Medicare Advantage plans (HMO, PPO). These must have the benefits offered by traditional Medicare, and usually add other benefits like drugs (Part D), vision, dental.