Open Letter re retiree health costs
10-17-2019, 02:12 PM
#1
On Reserve
Thread Starter
Joined APC: Jul 2008
Position: 777 Helm
Posts: 17
Open Letter re retiree health costs
Open letter to FedEx ALPA and its pilots
By now we all have our 2020 health enrollment information. Once again, the retiree premiums are increasing at a rate far and above any other plans I have data for, be it the multiple plans under the Federal Employee Health Benefit program (FEHB) or anyone else I’ve talked to about this. With the 2020 increase, the High Deductible Plan (retiree and spouse) has gone up 126% from 2017 to 2020. Post 2016 Contract implementation (2018 to 2020) it has increased 74%. Other national plans have been increasing at single digit per year rates. When I discussed this with FedEx ALPA Retirement and Insurance last year, after a one year 42% increase, I was told that “I shouldn’t have retired early” and that “military retirees with TriCare did not really benefit that much with the new Contract”. Both of these statements are dead wrong. I retired after a 30-year career, with full pension and, I thought, well-earned benefits that I could carry until Medicare age. And, yes, those with TriCare did quite well (as many of you know) thanks to the $4800+ per person ($9600+ for pilot and spouse) HRAs that the new Contract established, pretty much guaranteeing that they would never be out of pocket one cent for health care. My family, like so many others, planned for some increases in health care costs, but didn’t foresee $18,000 a year out of pocket (premiums, co-pays and medications) in only my third year of retirement. And thanks to our inept negotiating team, no $25,000 HRA card helps to offset costs, which was provided to the previous Contract retirees.
So, I write this letter to rip the curtain back on what is really important for FedEx ALPA and its pilots to consider for their future retirements. Your first step will be to empanel a negotiating committee who will work for all pilots (and competence would be suggested this time around too). Your primary goal in the next negotiations is to regain control of benefit costs, not to just pump up your W-2. But under the current Contract, if you’re in the military, I suggest you work to get your socialized medicine (I wish I had it). If you’re not TriCare-eligible, and really don’t want to work to 65, find a way to go out on a disability. Burn up all of that sick leave to extend your time on an active employee medical plan.
What are current non-military retirees doing in light of the uncontrolled (and unaudited?) health care premium increases? Most are resigned to choking on the premiums for 2020. Then, if the Affordable Care Act is still around in 2021, it will be likely cheaper to buy a ACA policy, opt out of FDX plans, get the $9600+ per year HRAs.
It shouldn’t have ended up like this.
By now we all have our 2020 health enrollment information. Once again, the retiree premiums are increasing at a rate far and above any other plans I have data for, be it the multiple plans under the Federal Employee Health Benefit program (FEHB) or anyone else I’ve talked to about this. With the 2020 increase, the High Deductible Plan (retiree and spouse) has gone up 126% from 2017 to 2020. Post 2016 Contract implementation (2018 to 2020) it has increased 74%. Other national plans have been increasing at single digit per year rates. When I discussed this with FedEx ALPA Retirement and Insurance last year, after a one year 42% increase, I was told that “I shouldn’t have retired early” and that “military retirees with TriCare did not really benefit that much with the new Contract”. Both of these statements are dead wrong. I retired after a 30-year career, with full pension and, I thought, well-earned benefits that I could carry until Medicare age. And, yes, those with TriCare did quite well (as many of you know) thanks to the $4800+ per person ($9600+ for pilot and spouse) HRAs that the new Contract established, pretty much guaranteeing that they would never be out of pocket one cent for health care. My family, like so many others, planned for some increases in health care costs, but didn’t foresee $18,000 a year out of pocket (premiums, co-pays and medications) in only my third year of retirement. And thanks to our inept negotiating team, no $25,000 HRA card helps to offset costs, which was provided to the previous Contract retirees.
So, I write this letter to rip the curtain back on what is really important for FedEx ALPA and its pilots to consider for their future retirements. Your first step will be to empanel a negotiating committee who will work for all pilots (and competence would be suggested this time around too). Your primary goal in the next negotiations is to regain control of benefit costs, not to just pump up your W-2. But under the current Contract, if you’re in the military, I suggest you work to get your socialized medicine (I wish I had it). If you’re not TriCare-eligible, and really don’t want to work to 65, find a way to go out on a disability. Burn up all of that sick leave to extend your time on an active employee medical plan.
What are current non-military retirees doing in light of the uncontrolled (and unaudited?) health care premium increases? Most are resigned to choking on the premiums for 2020. Then, if the Affordable Care Act is still around in 2021, it will be likely cheaper to buy a ACA policy, opt out of FDX plans, get the $9600+ per year HRAs.
It shouldn’t have ended up like this.
10-17-2019, 02:42 PM
#2
Gets Weekends Off
Joined APC: Mar 2012
Position: Two Wheeler FrontSeat
Posts: 1,162
Tell that to our Union sympathizers here on property. They said the TA had significant gains. I guess they didn’t subtract the gains from the losses to realize we were still in the negatives. I still can’t understand why anybody voted for that POS.
10-21-2019, 08:07 AM
#4
Gets Weekends Off
Joined APC: Sep 2017
Posts: 144
Originally Posted by magic rat
Hate to say it, but it was the senior pilots voting yes, going for the money grab before retirement, that got our current POS contract over the finish line. Glad you all are feeling the pain.
Reap what you sow.
Reap what you sow.
10-21-2019, 03:45 PM
#5
Gets Weekends Off
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,418
Even pre-06 CBA there were lamentations about the cost of retiree health care.
Some of the Captains I flew with as an engineer continued to fly post 60 as engineers because of the cost of retiree health care.
In 2006 there were pension multipliers and other tweaks to help those of a certain age (really negated by the regulated age change and the opportunity to stay in the window seat for longer)
Every month I contribute to mitigate the costs of medicare for retired pilots (something I will one day benefit from)
ALPA does pre-retirement seminars to help plan for retirement.
Cost of my healthcare was 27k last year, not really expecting it to be cheaper once I retire and hit the age group that tends to use more healthcare.
Guess my expectations for my retirement healthcare was to evaluate plan offered via FedEx with those on the Exchange and choose accordingly, balancing costs with coverage along with my comfort level.
Some of the Captains I flew with as an engineer continued to fly post 60 as engineers because of the cost of retiree health care.
In 2006 there were pension multipliers and other tweaks to help those of a certain age (really negated by the regulated age change and the opportunity to stay in the window seat for longer)
Every month I contribute to mitigate the costs of medicare for retired pilots (something I will one day benefit from)
ALPA does pre-retirement seminars to help plan for retirement.
Cost of my healthcare was 27k last year, not really expecting it to be cheaper once I retire and hit the age group that tends to use more healthcare.
Guess my expectations for my retirement healthcare was to evaluate plan offered via FedEx with those on the Exchange and choose accordingly, balancing costs with coverage along with my comfort level.
10-21-2019, 05:03 PM
#6
Gets Weekends Off
Joined APC: Apr 2013
Posts: 1,622
Originally Posted by kronan
Even pre-06 CBA there were lamentations about the cost of retiree health care.
Some of the Captains I flew with as an engineer continued to fly post 60 as engineers because of the cost of retiree health care.
In 2006 there were pension multipliers and other tweaks to help those of a certain age (really negated by the regulated age change and the opportunity to stay in the window seat for longer)
Every month I contribute to mitigate the costs of medicare for retired pilots (something I will one day benefit from)
ALPA does pre-retirement seminars to help plan for retirement.
Cost of my healthcare was 27k last year, not really expecting it to be cheaper once I retire and hit the age group that tends to use more healthcare.
Guess my expectations for my retirement healthcare was to evaluate plan offered via FedEx with those on the Exchange and choose accordingly, balancing costs with coverage along with my comfort level.
Some of the Captains I flew with as an engineer continued to fly post 60 as engineers because of the cost of retiree health care.
In 2006 there were pension multipliers and other tweaks to help those of a certain age (really negated by the regulated age change and the opportunity to stay in the window seat for longer)
Every month I contribute to mitigate the costs of medicare for retired pilots (something I will one day benefit from)
ALPA does pre-retirement seminars to help plan for retirement.
Cost of my healthcare was 27k last year, not really expecting it to be cheaper once I retire and hit the age group that tends to use more healthcare.
Guess my expectations for my retirement healthcare was to evaluate plan offered via FedEx with those on the Exchange and choose accordingly, balancing costs with coverage along with my comfort level.
Translation, don't be mad at my friends ... I mean the C2015 negotiators. This has been a problem since 2006 and you should have attended one of the Union's retirement seminars and have planned accordingly.
10-22-2019, 12:10 PM
#8
Gets Weekends Off
Joined APC: Nov 2005
Position: 757 Capt
Posts: 2,418
Originally Posted by PurpleToolBox
Union sympathizers have spoken!
Translation, don't be mad at my friends ... I mean the C2015 negotiators. This has been a problem since 2006 and you should have attended one of the Union's retirement seminars and have planned accordingly.
Translation, don't be mad at my friends ... I mean the C2015 negotiators. This has been a problem since 2006 and you should have attended one of the Union's retirement seminars and have planned accordingly.
But, didn’t you mean C2016? Like the Poster?
Wouldn’t it be nice if the poster threw some actual numbers?
I mean, letter said following the Implementation of CBA2016 his insurance went up 126% (2017-20)
74% (2018-20) while other national premiums went up single digits (which national insurance would that be by the way)
So, does that mean his premium was $200 and increased 126% to $452? (2017-20)
That it was $260 and increased 74% to $452 (2018-20)
And, why even worry about attending a pre-retirement briefing. Why I’d totally suggest ignoring all the various recommendations from other pilots and our Union to try attending one 3-5 years before your planned retirement date.
Shoot, why even bother to plan for retirement. It’ll work out.
And as I approach retirement, absolutely number one priority for us should be getting retired pilots on our Active Pilots insurance plans. No retired pilot should ever have to pay more than an active pilot.
For goodness sake, FedEx can afford it. So, I say less pay now for better benefits later....who’s with me
😉
10-22-2019, 12:32 PM
#9
Gets Weekends Off
Joined APC: Apr 2018
Position: MEM HSBY
Posts: 166
Originally Posted by kronan
Every month I contribute to mitigate the costs of medicare for retired pilots (something I will one day benefit from)
$1104 ytd for a 2nd year FO...
not chump change by any means
Last edited by LunkerHunter; 10-22-2019 at 12:33 PM. Reason: grammar
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