I waited a long time to get a look at my MegaCorp retiree health insurance benefits and they just arrived. It’s open enrollment time right now and I just booked my new insurance plan.
As background, I worked at one MegaCorp for 24 years and a second for just 3. I’m an official retiree of the first one, where I went from temporary Administrative Assistant (a college summer job) to Corporate Officer/VP. I left on a ‘Rule of 70’ package and have been waiting for age 55 to claim my early retirement insurance & pension.
I expected that the MegaCorp retiree ‘credit’ system was going to be complicated, but it’s not. I’m basically getting a $325/month annuity. It gets halved when we’re eligible for Medicare in 10 years. It gets halved again when I or my wife pass on. I can buy their insurance or stick with ours.
MegaCorp’s insurance is a bit better. It’s with the same carrier, MN Blue Cross/Blue Shield, and has the same monthly premium. It has a lower deductible ($11K vs $14K) and a carries across the USA. Our old coverage was only good in-state. We had to buy separate coverage for the months when we were in Florida.
The downside of the new plan is that it is only 80% coverage after the deductible is met. Our old coverage was 100% in network. That said, we never ever reached our deductible- even when the ‘big one’ hit.
It’s also not classified as a ‘high deductible plan’ that allows us to contribute to a HSA, which I have been a big fan of. I’m not sure what the government tax requirements for that are.
Still, I think apples-to-apples, the MegaCorp insurance is probably $100 cheaper a month. That, combined with my retiree $325 monthly credit benefits me about $5K a year, starting in January. MegaCorp will handle all the billing for me with my pension, which will also give me more time to goof off!
All-in-all, the plan is better than I expected. Do you have health insurance benefits as a retiree or are you expecting them?
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