ATT Cancels Retiree Health Plan

[txagent41]

Use the funds for part D premiums co pays donut hole vision and dental. Then take the supp for your self!

Aon (well, the employer who has an agreement with Aon) won't give the client their money unless they buy from Aon.

Just think about it, Aon isn't going to go through the trouble to administer their accounts, only to collect measly Part D commissions, and watch the Med Supp business go out the door.

I see it as a form of twisting ("Buy from us or else!"), but they've gotten away with it up to this point.

 

[kstein]

I'm sure it is employer specific but I worked with an IBM retiree last year that got her 2k reimbursed for part D only.

 

[WCMason]

Aon (well, the employer who has an agreement with Aon) won't give the client their money unless they buy from Aon. Just think about it, Aon isn't going to go through the trouble to administer their accounts, only to collect measly Part D commissions, and watch the Med Supp business go out the door. I see it as a form of twisting ("Buy from us or else!"), but they've gotten away with it up to this point.

It's a bit of a stretch to call that twisting. If the employer is paying, the employer decides. Just like any other employer group health plan.

I have run into these kind of cases a few times. One guy, who is only receiving $600 a year for the purchase of his health plan on the condition that it go through the employer exchange, wanted to give up that money so he could have the freedom to use me as his agent. I talked him out of doing that. I explained that it really didn't make sense for him to give up that money for the exact same coverage. I agreed to help him with his annual drug review anyway, and asked if he would be kind enough to send me any people who weren't as fortunate as him to get a subsidy. He has become by far my best referrer.

I have told more than a few with the employer group retiree coverage that the best advice I can give them is not to let anyone like me sell them anything. They talk to people.

 

[txagent41]

It's a bit of a stretch to call that twisting. If the employer is paying, the employer decides. Just like any other employer group health plan.

Except it's not a group, they're all buying individual policies.

Just seems like a racket.

I do know that they don't carry all the Part D's (they carry 10 or so of the 34 in TX), so they're doing the clients a disservice there, forcing them to buy from them, when they could probably get better if they were allowed to shop the entire market.

 

[WCMason]

Except it's not a group, they're all buying individual policies. Why would the employer care where their retirees are buying their policies? It's a racket.

It's not a racket. It's a simplified way for the employer to pay. Not unlike any employer cafeteria-style plan where there are multiple options. When I lived in Washington DC years ago the Wash Post had a full page spread annually with all the options. Each individual makes a choice, but it's still a group retiree plan.

 

[txagent41]

OK, just playing devil's advocate here..

..but, what harm is it for the client to shop the entire Part D (or Med Supp) markwt, and send in a claim form (which Aon offers) to get their reimbursement? You'd think the employer would be all for it, especially if it's beneficial to the client.

 

[WCMason]

OK, just playing devil's advocate here.. ..but, what harm is it for the client to shop the entire Part D (or Med Supp) market, and send in a claim form (which Aon offers) to get their reimbursement? You'd think the employer would be all for it, especially if it's beneficial to the client.

No harm, just a relative PITA to manage compared to funding one exchange.

 

[yogooglethis]

Aon (well, the employer who has an agreement with Aon) won't give the client their money unless they buy from Aon.

Just think about it, Aon isn't going to go through the trouble to administer their accounts, only to collect measly Part D commissions, and watch the Med Supp business go out the door.

I see it as a form of twisting ("Buy from us or else!"), but they've gotten away with it up to this point.

Aon knows the statistics when they sign the contract with the employer that even having the loophole that allows use of an outside agent for all but one product is still going to be profitable. Just the appearance that they are the only agent that retirees can buy their insurance through to be eligible for the stipend is enough reason that the vast majority of the retirees will not consider risking using an outside agent. .
I don't know for a fact yet that AON agreement with ATT reads like that yet but I have dealt with other retirees who employer contracted with both the AON and Extend Health exchange and they all where able to keep their stipend adhering to the 1 product minimum rule and in some cases there was no minimum requirement. Best thing is to do a 3 way with HR or benefits admin of employer and confirm this because sometimes it's hard to get the straight answer from the exchange.

These exchanges often have very bad customer service and the retiree will never speak to the AOR again - not that the retiree will necessarily want to talk with the AOR after the initial phone consultation/enrollment because the agents these exchanges hire are usually very green and full of wrong information especially on the the local level and also I believe these agents don't get much or any renewals as an incentive to keep the retirees after happy after the sale.I have had on more than 1 occasion where a retiree called me back and tried to get me to be AOR after they already signed up through the exchange because they where having such a horrible customer experience-one lady was almost crying when she called me because she was so fed up with the run around she had been getting from the exchange and said she didn't even care if she lost her stipend to not have to deal with them anymore.That is a real issue for people who use these exchanges and IMO the biggest selling point to why they should use the service of a good local agent for ongoing service as long as they are able to keep their stipend.

Last week one of my clients who is a retiree of Anheuser Bush called me and told me that AB is going in to a contract with AON to handle all their retirees insurance and he wanted me to be available to speak to some of the retirees after AON presents the package to retirees in September.This man knows about insurance benefits because he was the union health benefit liaison to HR when negotiating their benefit package contract with Anheuser Bush .He told me that a friend of his who was a retiree of a different employer that had AON forced on them has had a terrible experience with customer service and because he understands the benefit of having a good local agent he wants his ex union co workers who still seek his advice to be aware of the fact that it may be possible to have the service of a local agent and still retain their stipend.

 

[HoosierLife]

Good info Somarco. My father in law was just telling me about this yesterday. He retired from ATT. I'll forward this info on to him. Thanks!

 

[somarco]

Aon isn't going to go through the trouble to administer their accounts, only to collect measly Part D commissions

Aon is paid a consulting fee. Any commissions is just icing on the cake.

If the employer is paying, the employer decides. Just like any other employer group health plan.

Not exactly. It is a retiree HRA.

employer group retiree coverage

Technically, this is not a group retiree plan but rather the HRA replaces the former group plan.

retiree will never speak to the AOR again

Truth.

From the point of sale forward they speak to whoever answers the phone or press 1 for English and leave a message.