For Pacific Bell/Nevada Bell managers who retired after January 1, 1991, SBC's health plan (2006) is a radical departure from the existing Health Benefit Plan.

Your Association has been actively involved with SBC Health Benefit executives since early 2005 attempting to achieve modifications to the 2006 Health Plans "out-of-pocket" medical expenditures (maximums), changes in the pharmaceutical "co-pays," improved definitions of Network Service Areas, "deductible differences" for managers whose basic salary exceeded $50,000 annually or less than $50,000 annually.

We have also been "vocal" about the level of deductibles between Network and "Outside Network Areas" (annual deductible for a retiree - with spouse, whose annual salary exceeded $50,000 at the time of retirement) is currently established at $7,850! Whereas, the amount of the deductible for a retired manager and spouse whose annual salary at the time of retirement was $50,000 or less is established at $5,738!

The "deductible amounts" for the same managers who utilize "Outside Network Providers" is $30,600!!

SBC Health Benefit executives have stressed the fact if retired managers who are "Outside of a Network Area" elect to opt in, their costs will be at the same level as retired managers living "Inside" a Network Area.

Lastly, until a retired manager reaches their deductibles, they will pay the going rate for their pharmaceuticals (no co-pays) .

At this writing, the SBC Health Benefit organization has been intractable in negotiations for changes in the existing 2006 Health Benefit Plan for managers who retired after January 1, 1991.

United Health Care, which will continue to be the provider with the new 2006 health benefit plan for retired managers, has been making improvements in its Service Center operations. However, much needs to be done to improve their response to retirees' telephone calls and their medical claims and appeals.

We are informed that United Health Care has established a Rapid Resolution group that is committed to resolving medical claims within 48 hours following a claimant's contact with their office. The new UHC internet website Claims Information has been improved and simplified so that with minimal effort a retiree should be able to obtain same day data on a claim and to print out a copy of the same information status sheets that are mailed to you a week delayed..

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Medicare Part B Premiums for 2007

9/6/2006 9:01:00 AM

WASHINGTON, Sept. 6 /U.S. Newswire/ -- The Department of Health and Human Services (HHS) will announce Medicare Part B premiums for 2007 later this month, which will increase significantly for all seniors and dramatically for seniors with incomes of more than $80,000 per year. Excluded from their announcement will be the fact that some seniors will see their premiums jump by as much as 450 percent in just over two years.

For the first time since Medicare's creation 41 years ago, Medicare Part B-- which covers doctors' visits, tests and outpatient hospital care --will be "means tested," meaning seniors with incomes of more than $80,000 per year will pay more for services than lower-income seniors. As many as 2.3 million seniors will be affected by means testing.

Although HHS will only release figures for 2007, TREA Senior Citizens League is estimating that the cost of premiums will almost double by 2009 for beneficiaries with incomes of $80,000 each year, from $88.50 a month today to an estimated $172.80 per month in 2009.

Seniors with incomes of $200,000 will see premiums skyrocket by close to 450 percent in fewer than 2.5 years -- from $88.50 a month today to an estimated $395 per month in 2009. Estimates are based on the average annual increase over the past five years.

"At first glance, it may seem fair to salvage a failing system by having the wealthy carry a larger share of the load," said Shannon Benton, executive director of TREA Senior Citizens League. "But as wealthy seniors abandon Medicare as it becomes more expensive and choose private insurance instead, only the poorest and sickest will be stuck in Medicare, driving up costs for everyone left behind."

According to the Centers for Medicare and Medicaid Services, an estimated 50,000 seniors are expected to drop their Medicare Part B coverage next year when their premiums begin to raise -- a number expected to increase in future years -- opting instead for private insurance. Those seniors tend to be the ones without preexisting health problems, since they have fewer problems switching health plans. They also tend to have an easier time affording private insurance out-of-pocket.

Seniors earning less than $80,000 per year will see their Medicare Part B premiums jump from $88.50 a month today to at least $98.40 a month next year, an 11 percent increase -- far greater than their annual Social Security cost of living increase, which has averaged less than three percent over the past five years.

The Congressional Budget Office estimates that means testing will save barely three-tenths of one percent of Medicare's total budget over the next ten years.
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The ramifications of this decision by the Department of Health and Human Services will have a dramatic effect upon great numbers of AT&T retirees, especially those who receive a limited amount of Medicare Part B reimbursement.