Recent Events Important to Your Health Care Decision
Much more information on this page at the other [TABS], above                              printable window

Enrollment for Medicare Prescription Drugs Part D Begins. "Some beneficiaries may see significant increases or changes." Read more here. And click for a step-by-step plan finder.

Insurance company confirms that retirees can apply for Medigap supplemental insurance.
Mutual of Omaha has confirmed that Lucent retirees are eligible for obtaining Medigap insurance without pre-existing conditions at any insurance company, for the year 2009. Read more
  Obama goal: eliminate subsidies to the Medicare Advantage program.
The SecureHorizons Private-Fee-for-Service plan, offered through Alcatel-Lucent, is a Medicare Advantage Plan. The Obama promise is to eliminate subsidies to that plan, which will either raise costs or eliminate coverage for Lucent retirees features if legislation is enacted. Read more from Obama's web site
  Medicare legislation has changed PFFS plans, such as the SecureHorizons plan.
In a few years, retirees will be no longer have a choice of "deemed providers" - rather, networks of doctors and hospitals will be required. Read more from AARP
  Alcatel-Lucent says there is "Guaranteed Issue" for Medigap supplemental insurance.
Provides a Medicare-eligible Lucent retiree with the ability to obtain Medigap supplemental insurance without limitations on pre-existing conditions. This opportunity expires on April 1, 2009 and is not available to those who signed up with the SecureHorizons PFFS plan. Read more
  Alcatel-Lucent releases financial information on how it profited from change to SecureHorizons.
In its October, 2008 financial statement, Alcatel-Lucent disclosed that it increased "recognized income" by almost $180 million by the change to SecureHorizons. More than half of Alcatel-Lucent's income gain was from changes to AT&T's commitment to pre-1900 retirees healthcare. Read more
Error in Open Enrollment Materials on Dental Coverage.
The sentence, "If you retired before 3/1/90 and you waive medical coverage, you will also be waiving dental coverage." on page 24 should not have been there. Read more
NAVIGATING MEDICARE - A Resource Guide for LRO Members.
The LRO understands that the task of exploring the various Medicare based options in the marketplace can be overwhelming. The LRO has developed an easy-to-understand analyses of the various Medicare based options. Read more

  Alcatel-Lucent documents are available for downloading.
 
 

Medicare Legislation will Change SecureHorizons PFFS plans
In July, 2008, Congress passed new legislation that changes the operations of PFFS plans, such as the SecureHorizons plan being offered through Alcatel-Lucent. In a few years, SecureHorizons will no longer be able to offer retirees individual, deemed doctors and hospitals. Rather, SecureHorizons will be required to have a network of providers, similar to an HMO plan. Whether this requires retirees to change doctors and hospitals at that time is not known. Read more from this AARP Bulletin.

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Enrollment for Medicare Drug Plans Begins Again

By Steven Reinberg
HealthDay Reporter
Friday, November 14, 2008; 12:00 AM
FRIDAY, Nov. 14 (HealthDay News) -- With the enrollment period for Medicare's Part D prescription drug coverage program for 2009 kicking off Nov. 15, experts are advising seniors to choose a plan carefully because premiums and covered medications can vary from plan to plan.
"As we enter the fourth year of the Medicare Part D prescription drug program, we continue to see high satisfaction rates among beneficiaries and high participation among plans," Kerry Weems, acting administrator of the U.S. Centers for Medicare and Medicaid Services, said in a statement.
"However, plans do change their offerings from year to year. Some beneficiaries may see significant premium increases or changes, such as reduced coverage in the gap, if they stay in the same prescription drug plan in 2009. We encourage individual beneficiaries to review how their plans are changing and what other options are available to them to determine which plan best meets their needs," Weems said.
Paul Precht, director for policy and communications at the Medicare Rights Center, echoed that advice. "Probably the higher premiums will get some folks to look at their coverage options," he said.
"It's going to be tough for people. The premium increases are substantial," Precht added. "People are also seeing increases in the co-payments -- it comes at a tough time."
Medicare prescription drug coverage, sometimes called Part D, is insurance for seniors and some disabled people that covers both brand-name and generic prescription drugs at participating pharmacies. Open enrollment for Part D runs until Dec. 31.
People who are satisfied with their current plan don't have to do anything to stay enrolled. But those in so-called standalone plans that only cover medications will see premiums increase by an average of $7.40 a month, from $29.89 in 2008 to $37.29 in 2009, according to Medicare officials.
Consumers should be smart when choosing a plan because premiums can vary widely, from $10.30 a month to as much as $136.80 a month. Most people should be able to find a plan in the lower premium range, according to the Kaiser Family Foundation.
Most Part D participants who don't qualify for a low-income subsidy and who don't switch plans will see an increase in their monthly premium, according to the foundation. Twenty-seven percent will see premium increases of at least $120 per year.
Premiums aren't the only consideration when choosing a plan. Another important issue is making sure the plan you choose covers the drugs you take. Covered drugs and restrictions on drugs vary from plan to plan, so it's important to review each plan before making a choice, Precht said.
One of the most serious issues in choosing a plan is the coverage gap, or so-called "doughnut hole." While in this gap in coverage, most Part D participants must pay 100 percent of their total drug costs. For most plans this will total $3,454 in 2009, according to the Kaiser Family Foundation.
In 2009, nearly all Part D plans have a coverage gap, but one in four plans offers limited coverage in the gap -- generally coverage for some or all generic drugs, though some plans also cover some or a few brand-name drugs, according to the foundation.
Considering the price of drugs in a plan is also important, Precht said. "There are a number of plans that charge quite a bit more for generics than other plans," he said. "Particularly for people who take multiple drugs, that can make a difference between getting in the doughnut hole or not getting in the doughnut hole."
Precht said some people use a combination of strategies to reduce their drug costs. "They rely on the cheap generics, if you can get it from some of the 'big box' stores, using Part D for brand name drugs, plus buying drugs from Canada as an option for brand-name medications," he said.
People in Part D who meet the requirements for the low-income subsidy usually aren't responsible for costs in the coverage gap. The gap was intentionally included in the plan when it was launched four years ago so costs would not exceed the limits set by Congress.
Another option for some people may be a so-called Medicare Advantage Plan. These plans cover both your medical care and prescription drugs. But before enrolling in one of these plans you may want to be sure your doctor and hospital are part of the plan you choose.

 

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Guaranteed Issue Coverage for Medigap supplemental insurance
LRO President Andy Guarriello sent an email to Alcatel-Lucent Human Resources, stating the following: "Some people have received their "yellow" envelopes and have emailed me that they do not see any reference to or statement to the effect that they are losing their group plan and are eligible for guaranteed issue coverage. Are they missing it or is it just implied. If implied how would they show a potential Medigap provider that they have guaranteed issue rights?"

ALU responded as follows: "Retirees who will no longer have access to Alcatel-Lucent's Traditional Indemnity option are considered to be losing their current Alcatel-Lucent group plan coverage, and are eligible for guaranteed issue Medicare Supplement coverage. Retirees eligible for guaranteed issue are entitled to a Medigap plan without medical underwriting, and freedom from preexisting condition exclusions."

Retirees are correct that there is no reference in the open enrollment materials to the impact of their losing their group plan coverage. Medicare Supplement plans are regulated at the state (and not federal) level, and therefore, the rules will vary by state. Therefore, all retirees are encouraged to check with their states' insurance departments for specific information.

"Retirees should advise the Medicare Supplement plans they are investigating of the situation with their current group coverage (they can refer to their open enrollment materials). We are not aware of a Medigap plan requiring written documentation of losing group coverage."

This is a one-time opportunity for guaranteed issue to access a Medigap plan without being limited by a preexisting condition. See an example. Congress has enacted Medicare legislation that would mandate changes in how doctors and hospitals are chosen for group Medicare Advantage Private Fee-for-Services health care plans such as the SecureHorizons MedicareDirect plan being offered by Alcatel-Lucent. See AARP Bulletin.

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Alcatel-Lucent financials - from their October 2008 financial report (emphasis added)

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".

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Alcatel-Lucent Informs LRO Of Dental Coverage Error In Open Enrollment Materials
Alcatel-Lucent has informed the LRO that there is an error in the open enrollment materials (Alcatel-Lucent Information and Action Guide for Management Plan Design Retirees). The sentence, "If you retired before 3/1/90 and you waive medical coverage, you will also be waiving dental coverage." on page 24 should not have been there. If you waive medical coverage, you can still elect dental coverage. This is true for both pre- and post -3/1/90 retirees. Alcatel-Lucent apologizes for any confusion.
If you opt out of Alcatel-Lucent coverage for 2009, you may opt in during open enrollment for 2010. As a pre-3/1/90 retiree, you would not be responsible for a monthly premium. At this time, Alcatel-Lucent expects to again offer the SecureHorizons MedicareDirect option to Medicare-eligible retirees for 2010.

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NAVIGATING MEDICARE - A Resource Guide for LRO Members
The LRO understands that the SecureHorizons option that is being offered by Alcatel-Lucent for management retirees that are medicare eligible and their medicare eligible dependents might not work for everyone, and the task of exploring the various Medicare based options in the marketplace can be overwhelming.

To assist our retirees in this difficult decision process, the LRO Benefits Team has contracted with a private healthcare consultant to develop easy-to-understand analyses of the various Medicare based options, including Medicare Medigap plans (also called Medicare Supplement Insurance policies), Medicare Advantage plans, and Medicare Part D drug plans.

This LRO funded resource material, "NAVIGATING MEDICARE," can be accessed by clicking here.

If you have trouble accessing the Adobe version of this document, click here.
More detailed information and Medicare documents are on the the other [TABS] above.

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Correspondence to the LRO on "guaranteed issue" for Medigap supplemental insurance:

   Special Note: Medicare says:
  "Usually the only difference between Medigap policies sold by different insurance companies is the cost."         Be sure to follow the 6 steps at the How to Use [Tab] to find all the Medigap and Medicare Advantage plans available to Lucent retirees, in addition to the plan quoted below.

In response to numerous requests from Lucent retirees, the LRO has sought
health care insurance companies that would provide an alternative to the
Alcatel-Lucent plans for 2009. Mutual of Omaha has responded to the LRO.
Please read the letter below that LRO President Andy Guarriello has sent to
John Hickey, Alcatel-Lucent Human Resources Vice President. Also read the
letter sent to the LRO by Mutual of Omaha.

The LRO wants to be clear that it is not endorsing the Mutual of Omaha health care plan. The LRO is providing this information to LRO members who may want to explore an alternative to the 2009 health care plans being offered by Alcatel-Lucent. Each Lucent retiree, their spouse and any other dependents must decide whether it is in their best interest to switch from a company-sponsored plan to an "outside" plan.

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November 7, 2008

TO: John Hickey, Alcatel-Lucent Human Resources Vice President
Subject: Guaranteed Issue Rights

John
   As you know, many of our retirees have been concerned about having  documentation that would allow them to obtain Medicare supplement policies on a Guaranteed Issue basis, without regard to pre-existing medical conditions.
   Surely you won't be surprised that the LRO has expended much activity in investigating options for 2009. One company has recently responded to the LRO with regard to providing Guarantee Issuance Medicare Supplement Plans (Medigap policies). That company is Mutual of Omaha and their affiliates. I have received the attached letter dated November 4, 2008 from Mutual of Omaha. In that letter they stipulate that, after their investigation, they consider all Lucent retirees to be eligible for their Guaranteed Issue Medicare Supplements (Medigap policies), without further documentation, because Lucent's current indemnity plan terminates 12/31/08.
  Further, they have already established a number (1-800-492-6345) that all of our
Medicare eligible retirees can call to inquire about and receive information as to
the Medicare options and related prices that Mutual of Omaha will provide.
Finally, Mutual of Omaha intends to establish a fully staffed call center for serving
those retirees who receive their pensions from Lucent.

Andy

-----------------------------------------------------------------------

MUTUAL. Of OMAHA INSURANCE COMPANY
Mutual of Omaha Plaza
Omaha, NE 68175
402 342 7600
mutualofomaha.com
November 4, 2008

Lucent Retiree Organization
Attn: President Andrew Guarriello 6605 Castle Pines Dr
Plano TX 75093
Dear Mr. Guarriello,
This letter is to advise that Mutual of Omaha Insurance Company and their affiliate companies, United World Life Insurance and United of Omaha Life Insurance consider the retirees of Alcatel-Lucent eligible for guarantee issue Medicare supplements due to their current plan terminating 01/01/09.
The retirees must apply no later than 63 calendar days after the latest of these 3 dates:
1. Date the coverage ends with the employer.
2. Date on the notice the individual receives telling he/she that his/her
employer coverage is ending (if the individual receives one).
3. Date on a claim denial, if this is the only way the individual knows that their coverage has ended.
Please let me know if you have any further questions.

Thank you,
Angie Nekola
Product Manager-Medicare Supplement
cc: John Hickey

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