Lucent's profit at the expense of Retiree Healthcare

[sdavid]

Alcatel-Lucent budgets a dollar amount for each retiree’s healthcare and sets this money aside. For 2009 many retirees had to move out of the Alcatel-Lucent’s PFFS heath plan to protect their “guarantee issue” rights in the case of preexisting health conditions, or to assure healthcare coverage from a wider selection of physicians. Alcatel-Lucent should not profit from movement of retirees out of the company offered plan for the above reasons. For economic reasons the company plan would be best, but for healthcare reasons the plan doesn’t work.

Alcatel-Lucent should reimburse the retiree for the amount it would normally contribute to the retiree’s healthcare.

The LRO should work to have some Alcatel-Lucent dollar support for retirees forced to make the decision to not take the PFFS plan.

[OlManRivah]

Well said SDavid. I fear that many retirees (many not participating on the Forum) don't realize what they'll lose by accepting this PFFS sham. Do they realize that after accepting this thing, they will never know if their doctors visit or hospital visit will be covered until they ask each visit? And, they probably won't know then because the clerk at the window won't know.

This is a very sad time for us LU retirees.

[lucentretirees]

From the October 2008 Alcatel-Lucent financial report:
U.S. management healthcare plan amendment
>> On July 30, 2008, certain changes to Lucent’s management retiree healthcare benefits were approved by the board of Directors of Lucent Technologies Inc and announced to retirees between August and the beginning of October. Among other, effective January 1, 2009, postretirement medical benefits for Medicare eligible Management participants will be provided through a fully insured Medicare Advantage Private Fee-For-Service (PFSS) Plan. Under this plan, the PFFS contracts directly with the Centers for Medicare & Medicaid Services to provide all Medicare Parts A and B benefits for Medicare eligible Management retirees. These changes imply a € 144 million benefit obligation decrease for the management retiree healthcare plan. € 81 million of this decrease related to Management employees who retired before March 1, 1990 are considered as a change of actuarial assumptions and are recognized in the Statements Of Recognized Income and Expenses. € 63 million of this decrease related to Management employees who retired on or after March 1, 1990 that are subject to defined caps, are considered as a plan amendment and are recognized in the Income Statement in the specific line item "Post-retirement benefit plan amendments".

[Scammed]

In January I had a hernia repaired. It was on an outpatient basis. In in the morning, home in the afternoon. Yesterday, I received the bill from the medical group which performed the procedure. To my surprise, the amount I owe out of pocket, after UHC had reimbursed the group for the expenses, is $822.50. This amount has since been confirmed through calls to UHC, and the medical group.

With that, I have calculated the difference in out of pocket cost to myself between this new SHMD plan (SecureHorizons Medicare Direct), and our old Indemnity plan from last year. The bottom line ( which includes the $290 deductible):

Medicare's allowed amount for the procedure is = $2,952.51
SHMD cost out of pocket = $822.50
Old Indemnity cost out of pocket would have been = $350.46

Increase in out of pocket cost to me from last year to this year = $472.04

REASON? The 80% which the Indemnity plan paid for the 20% Medicare gap - IS GONE!