LUS Retirement Healthcare Question - PBGC

[WeAAsles]

As far as I know if we leave AA before turning 65 we get nothing but cobra for a short time.
Hopefully someone will say I'm wrong...

You're not wrong. But no way would I sign up for COBRA which would be ridiculously overpriced compared to what you could get through the ACA especially if you qualify for subsides. And hopefully you also live in a State that signed up for Medicare expansion. Most Southern States you're SOOL.

http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

 

[usa1]

Does anyone know if the insurance we have now with AA is eligible  for the HCTC if you retired? 

 
That's my question as well. What we are asking is does our AA pre-65 company plan qualify under our PBGC / HTCT guarantee? HTCT picks up 72% if it does.
 
If you didn't lose your "US defined retirement" in BK you probably don't know what we are talking about. 

 

[jd630000]

usa1...who do we ask? i tried the IRS and could never get a straight answer...(what a surprise)

 

[Roadking5560]

You're not wrong. But no way would I sign up for COBRA which would be ridiculously overpriced compared to what you could get through the ACA especially if you qualify for subsides. And hopefully you also live in a State that signed up for Medicare expansion. Most Southern States you're SOOL.

http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

If it's any consolation, the dental portion of cobra is about the same money as what we pay now.  This was according to a rep at pay and benefits.

 

[usa1]

usa1...who do we ask? i tried the IRS and could never get a straight answer...(what a surprise)

 
GOOD QUESTION .... AND AN IMPORTANT ONE TO MANY OF US! 

 

[usa1]

Aren't unions negotiating new healthcare plans for all groups starting in 2017?  CWA was told us whatever over groups get so do we. We need a per-65 plan that qualifies for HTCT.
 
Congress only expended the HTCT through 2019. Hopefully it gets extended again or something else become available.   

 

[Salty Dog]

That's my question as well. What we are asking is does our AA pre-65 company plan qualify under our PBGC / HTCT guarantee? HTCT picks up 72% if it does.
 

Where can we get more info on this??

 

[Hello3B]

You're not wrong. But no way would I sign up for COBRA which would be ridiculously overpriced compared to what you could get through the ACA especially if you qualify for subsides. And hopefully you also live in a State that signed up for Medicare expansion. Most Southern States you're SOOL.

http://www.dol.gov/ebsa/faqs/faq-consumer-cobra.html

before you call COBRA overpriced, you should check out what the ACA pays for drugs.  Thats is where the big difference lies. 

 

[ChrisUS]

I would not trust any answer you got on here.  I suggest going to the PBGC or IRS for the answer.  One problem you have is the definition of a qualified plan.  For instance, I am past 65 and have Medicare Part A only because American's group insurance is a qualified plan therefore I do not have to sign up for Parts B, C, and or D yet.
 
How do I know it's a qualified plan?  AA sends me a letter each year stating that the AA Medical insurance is a qualified plan under Federal standards.  By qualified, they mean that AA's group insurance provides as good or better coverage than Medicare.
 
And, you can't translate that qualification into a qualification for the insurance you have.  The PBGC probably has totally different standards for determining if a policy is qualified..
 
I would start with determining whether or not the pre-65 Insurance meets the standard for being a qualified plan.  From what you have posted, it sounds like a pursuit well worth making.  A tax credit for the premiums you pay?  Go for it.  If it provides the same benefits available to full-time employees, I would say yes it's qualified, but what do I know?  I'm a flight attendant. I'm paid to be cute, not smart.  

Jim, I recently retired from a government job and get to keep my medical insurance. HOWEVER,  while the coverage is EXACTLY the same in retirement, it is not considered a QUALIFIED plan. The difference?  Payroll deduction.  I know, SERIOUSLY?  I had hoped to stick with my agency plan for my wife and I and when she turns 65, go with Medicare and a supplement for us both.  NOPE! Since my retirement plan isn't QUALIFIED, I had a few months after retirement to take part B or pay a 10% penalty per year for the rest of my life. 

 

[supercruiser]

https://www.irs.gov/Individuals/HCTC-Health-Plans-Q-and-A

 

[usa1]

Still can't figure out if our Pre-65 qualifies?
 
1. For 2016, what types of health insurance qualify for the HCTC?
There are several types of health insurance that qualify for the HCTC for 2016. However, contributions by your employer or your spouse’s employer may limit qualification. See the next question.
(1) Coverage under a COBRA continuation provision;
(2) Coverage under a group health plan available through the employment of your spouse;
(3) Coverage under an employee benefit plan funded by a voluntary employees’ beneficiary association (VEBA) that was established through the bankruptcy of your former employer;
(4) Coverage obtained in the non-group (individual) health insurance market other than coverage offered through the Health Insurance Marketplace; and
(5) Coverage under certain state-qualified health plans established prior to January 1, 2014.

 

[jd630000]

still don't know if pre 65 applies either...would be nice if someone...maybe the union..could help us out here...

 

[usa1]

Still can't figure out if our Pre-65 qualifies?
 
1. For 2016, what types of health insurance qualify for the HCTC?
There are several types of health insurance that qualify for the HCTC for 2016. However, contributions by your employer or your spouse’s employer may limit qualification. See the next question.
(1) Coverage under a COBRA continuation provision;
(2) Coverage under a group health plan available through the employment of your spouse;
(3) Coverage under an employee benefit plan funded by a voluntary employees’ beneficiary association (VEBA) that was established through the bankruptcy of your former employer;
(4) Coverage obtained in the non-group (individual) health insurance market other than coverage offered through the Health Insurance Marketplace; and
(5) Coverage under certain state-qualified health plans established prior to January 1, 2014.

 
Well, AA contributes nothing toward our pre-65 so maybe it does?

 

[usa1]

Found this on the IRS site.....

Qualified Health Insurance Plan

A qualified health insurance plan is any of
the following.

1. Coverage under a group health
plan available through the employment of
your spouse, but see the instructions for
line 1.

2. Coverage under a non-group
(individual) health insurance plan. For
2014 and 2015, this includes a qualified
health plan offered on HealthCare.gov or
through a State Marketplace. See
Participants in a Health Insurance
Marketplace, later, for special rules and
instructions for completing Form 8885 and
Form 8962.
Individual health insurance does not
include any insurance connected with a
group health plan or federal- or
state-based health insurance coverage.

3. Coverage under a COBRA
continuation provision (as defined in
section 9832(d)(1)).

4. Coverage under a state-qualified
health plan. State-qualified health plans
include the following.

a. Continuation coverage provided by
the state under a state law that requires
such coverage.

b. A qualified state high risk pool (as
defined in section 2744(c)(2) of the Public
Health Service Act).

c. A health insurance program offered
for state employees.

d. A state-based health insurance
program that is comparable to the health
insurance program offered for state
employees.

e. An arrangement entered into by a
state and (a) a group health plan
(including such a plan which is a
multiemployer plan as defined in section
3(37) of ERISA), ( B) an issuer of health
insurance coverage, (c) an administrator,
or (d) an employer.

f. A state arrangement with a private
sector health care coverage purchasing
pool.

g. A state-operated health plan that
does not receive any federal financial
participation.

5. A health plan purchased through a
Voluntary Employees' Beneficiary
Association (VEBA) that was established
through the bankruptcy of your former
employer. For more information, see the
TIP at the end of this section.


Exception. A qualified health insurance
plan does not include any of the following.
Any state-based coverage listed in
items 4a through 4g above unless it also
meets the requirements of section 35(e)
(2).

A flexible spending or similar
arrangement.

Any insurance if substantially all of its
coverage is of excepted benefits
described in section 9832(c). For
example, if you purchase dental or vision
benefits separately, these benefits are not
part of a qualified health insurance plan for
the HCTC. But, if you purchase dental or
vision benefits as part of a comprehensive
package and these benefits do not
represent substantially all of its coverage,
these benefits may be part of a qualified
health insurance plan and the premiums
paid may be eligible for the HCTC.

For more information about
whether you have a qualified
health insurance plan, go to
www.irs.gov/HCTC

 

[usa1]

Finally found my state's qualifying plan. It's a high risk pool. The best plan is around 1000.00 per month. HCTC picks up 72%. Would leave me paying around $280 per month. I hope the company sets up a qualifying pre-65. Would rather stick with something I'm familiar with?