LRO Members’ Comments On Lucent Healthcare Enrollment Costs For 2007

11/28/06

To Pat Russo

Unfortunately the people at Hewitt Associates were not telling the truth about our benefit enrollment kits. 

I called about my benefit package late October and was told that it was shipped and I should get it at least a week BEFORE the start of the enrollment period.  Well, I just got back from a week of vacation and found the attached “Extremely Urgent UPS” package.  It was the Benefit Enrollment kit.  It was postmarked Nov 20 which was 3 days AFTER my enrollment period ended.  I, like many others were complaining about not getting the package…thank goodness we can access and make decisions over the internet site.

Somebody dropped the ball and surely they are not talking about it.   We retirees have enough anxiety over pensions, benefit costs and Lucent’s stock price along with worthless stock options that are set to expire soon……we don’t need this kind of problem too.   I hope someone fixes this procedure for next year and gives us ample time to analyze and decide.

Jim Quintas

11/18/06

I have not received any benefits package from my employer of 31 years. My input deadline: date/time has now passed. I was unable to get into the benefits site through hewitt or the direct telephone connection. I am now
screwed? I have no recourse? I am disabled and my spouse, who works for a drug store chain, has the same end insurer as I with lucent, yet we would have paid $300.00 less a month. I am screwed for $3,600.00 a year? I have
more out of pocket than I would have with her company and will pay more for drugs with a higher deductible. I was "retired" in spite of being on disability. lucent (lower case intended) has no record of my job injuries
(carpal tunnel, chemical exposure, broken limbs, etc), but they have provided for my retirement?

Thank you all - from Russo to Schacht to McGinn, you have further stripped me of all dignity.

Drew Cabrera

Woodstock, GA

11/15/06

I cannot believe the cost for medical insurance!  This year our monthly fee for medical insurance (no dental insurance) has gone from $515 in 2005 to $863 for 2007 for myself and my husband  (Aetna POS II).  We thought
that perhaps the cost would decrease because we moved from NJ to Florida (and all you hear is how high insurance is in NJ).  But I guess where you live makes no difference at all.

When I left Lucent in 2001, I knew that they would keep on increasing this amount because they indicated that they had the right to change it.  What I didn't realize was that they would be allowed to change it so drastically.  There should be a cap on how much they are allowed to change the monthly charge from one year to the next.  For next year alone the fee increased by $ 173 a month!!  I really wonder if they are paying any portion of my insurance.  We will pay over $10,000 in medical insurance this year - where will it stop!!

Although those who retired ages ago continue to get their coverage for free, many of these individuals are probably covered by Medicare by now - so how much is Lucent really paying for them??  When is the government going to review what companies like Lucent are doing?

Lucille Goggi - July 2001 Retiree with 36 Years

Ormond Beach, FL
386 672-5241

lgoggi@hotmail.com

11/15/06

I have not received my package in the mail as yet to make my decision on health care for myself and my husband but I did look on-line this morning and I am appalled.

Lucent has raised my deduction for health care over 100% for next year! I have gone from $69.64 to $169.12. That is 17% of my pension! How can that be? How do they expect people to live on what they have leftover?  Especially since I got in the mail that they (Lucent) were transferring money to cover retirees health costs. This is unbelievable! If the time frame to make up your mind is as stated in the LRO email(by Nov 17th) I don't even have time to search out other coverage for us. This is hitting us very hard and I am so disappointed with Lucent. We all thought we were retiring from a great and honorable company only to get worked over by them over and over again. When does it end?

 

Thanks for listening.

Linda Dunn

Clifton Park, NY

11/13/06

This is my response to express my disappointment with Lucent Medical Insurance coverage plan for Retirees.

Through my entire career (33.5 Years) with Lucent (Western Electric /AT&T/Lucent) I did not have to pay additional Insurance for my wife. So when the retirement plan was offered to me I took it in order to be eligible to pay only 10% of my medical premiums (unfortunately I was not aware that due to my annual income the automatic coverage for my spouse will be dropped, and I would have to pay the group premium coverage cost for her). None of this was information was provided at the time I was applying for my retirement. This continued increase each year had caused a great amount of stress and financial burden on me. I am a Type II Diabetic and my medical prescription are also on the rise. I had to go back and work full time in order to meet my current financial obligations

When I retired in July 2001, my medical insurance premium was only 2.1% of my gross monthly pension income. For 2007 my medical premium will be 36.6% of my gross monthly pension income. At this rate it won't be long before my entire pension will used for medical insurance. I feel that this is so un just especially since I devoted 33.5 years of loyalty & dedication.  

Jesse C. Perez 

11/13/06

I have just received my enrollment sheets and my premiums rose 24.7% from $147.12 to $183.48 per month.  The coverage is for basic 1 person Medicare eligible and 1 dependent traditional indemnity.

Gene W. Treadway

11/13/06

My healthcare expenses (Aetna POS and Dental) now consume 34.4% of my pre-tax retirement paycheck.  Lucent raised my Medical payments 23.5% this year.  I can find no evidence on the Internet to substantiate that health care costs have risen by that amount. One can only assume that either Lucent is using its retirees to subsidize health are costs of their regular employees, or perhaps it is using us to subsidize some other corner of their expenses.

George MacLachlan

Eatontown, NJ

11/13/06

11/10/06

The following information is for myself and my wife ONLY - DENTAL paid coverage was dropped by the company in the last two years or so and I now DO NOT HAVE DENTAL COVERAGE.  It would cost me between $60 and $80 DOLLARS per month to have the coverage now - was free when I retired.  I will go on medicare in Feb 2007.  I received a letter a few years back that dropped full coverage for management retired ( spouse coverage) who made over $ 70K in a year.  Out of my 36 years I only made this amount one year.  I do not know how this can be a cause for coverage to jump like Lucent has done.

Year            Amount

2000            $ 00

2001            $ 35 best guess

2002            $ 54.25

2003            $ 140.83

2004            $ 221.00

2005            $ 515.87

2006            $ 689.58

2007            $ 860.00

Victor Noble

Bonner Springs

11/10/06

My gross Management pension is $1213/mo and $1095 net of federal taxes. If I stay with my current HMO of Illinois BCBS coverage, the premiums jump from $125/mo to $166/Mo, nearly a 33% increase! The $166/mo would represent 15% of my net-after-taxes pension check. Last year I chose to cancel dental because of the rising costs, only to get hit with a root canal and cap to the tune of $1800...out of my pocket.

I do have the option of taking the Aetna Basic POS at $97/mo and still keep my current PCP, who  I've been with for years and wish to stay with. While that saves me money, I would be looking at playing dice, as I did with dental (and lost), because the Aetna POS only covers the 80% of reasonable and customary costs. If I had an expensive hospital bill, I would not be able to cover that difference. During the past year, I had considerable work done on skin cancer...three surguries and eight frozen spots. The total bill so far is about $10,000. Without HMO coverage I would have had to come up with a lot of money from my paocket. No guarantee more spots won't appear, so I will probably opt to pay the $166 just to be safe.

One last interesting point. I have a good friend who has HMO Illinois BCBS but from IBM. Her cost is $70/mo for 2007. Nearly $100/mo less. Perhaps there are very good explanations for this, but on the surface I have to wonder why.

The trend in these costs is very worrisome. At 30% inflation a   year, my pension is gone in about 6 years!

Thomas B. Erwin

Sugar Grove, IL

11/10/06

11/10/06

Here is my healthcare information.

My coverage is Horizon BCBS New Jersey for 2 persons on Medicare.

In 2006 my premium is $472.62.  In 2007 it will be $680.57--a 44% increase.

Dental will go from $77.85 to $82.89 in 2007.

Martin Brodbar

Flanders, NJ

11/9/06

For the last two years my monthly, individual insurance premium was $129. This new package for my 2007 coverage states that in order to maintain the exact same coverage - which is not great to begin with - since most of my doctors that I have seen for 30 years, are out of state and/or out of network - will cost me $249 a month - almost a 100% increase!!!!  

MJ Diehm

11/9/06

I retired in 2000 with 27 years with the company. My premium increased from $129 a month to $249 a month! I do have an option to reduce my coverage and pay $129.65 per month. I am 56, and I HAVE NOT USED my insurance at all this year (2006) and not once in 2005 or 2004 - Oh, I did get one prescription this year for a cruise, but that is it - nothing else. I wonder if I'll have any $$ left by the time I reach Social Security and Medicare - that's assuming that it's still available by the time I'm 62 or 65.

Claudia Botner

11/9/06

I MAY BE THE EXCEPTION SINCE I RECEIVED MY RETIREMENT PACKAGE ALMOST TWO WEEKS AGO. I CALLED IN ON THE 6TH AND TOLD OF THE CHANGES THAT I WANTED MADE WHICH WAS SWITCHING TO PARTNERS.

THOSE THAT RETIRED PRIOR TO MARCH IST, 1990, CAN SIGN UP WITH PARTNERS AND WILL NOT HAVE ANY PAYMENTS DUE LUCENT. THE RETIREE PAYS A CO-PAYMENT OF $10 TO $20 FOR EACH VISIT TO THE DOCTORS. ALSO, PARTNERS HAS BEEN HIRED BY MEDICARE TO HANDLE ALL OF THEIR PAPER WORK. OF COURSE THE PLAN MAY BE DIFFERENT FOR DIFFERENT AREAS OF THE COUNTRY. LOCALLY, MOST ALL DOCTORS THAT ARE AFFILIATED WITH FORSYTH AND BAPTIST ARE IN THE NETWORK.

I HAVE NO IDEA HOW MANY RETIREES RESIDE IN NORTH CAROLINA THAT WOULD BE ILLEGIBLE FOR PARTNERS. MANY THAT I DO KNOW HAVE SWITCHED TO PARTNERS AND ARE VERY SATISFIED.

HAL WORLEY

11/8/06

I can not describe what happened when I opened the "big yellow envelope" and looked at our health premiums for '07. The mixture of sick feeling, anger and general distress was indescribable.

Our premiums for health and dental coverage went from 11.22% of my retirement check to 22.40%. In dollars, the health premiums jumped from $156.07 per month to $384.14 per month. This is an increase of 146.13%.

We are looking at living off my small retirement check and two Social Security checks in a not too distant future. We still work but we don't make anywhere the kind of money to save anything. We work to be able to live at somewhat middle class standard. I don't know how long we can do this because my wife and I are over 60 years old.

What about 401K savings? It is wiped out. I am one of those that believed in the Company. I worked and retired from AT&T Network Systems for 31 years. We didn't even know about Lucent when I left in 1994 but we were lumped with them at the split. I had put all our savings in Company stock, both AT&T and converted into Lucent. The management seemed to be the bright young lights of AT&T NS. Well, the rest is history. I believe we were lied to in countless ways. The mismanagement was rampant. The by product is obvious - executive after executive has left with millions of dollars worth of separation packages while people like us hold our breath every time the "yellow envelope" arrives.  

I could go on. All I can say is that we need to pursue every possible legal recourse for disclosure and fair treatment. I am sure all of the LRO retirees feel the same way. I personally will be glad to help in any way I can.

Manny Guillen

11/8/06

My coverage doubled for what I am receiving right now.  I am paying $210.00 for just the healthcare premium for
2006. For the same coverage the cost will be $446.00 for 2007.  What is happening??? I can't afford this kind of increase!!!!!  I don't know where I am going to get the money.  My husband is diabetic.

 

11/8/06

I just received my 2007 benefits package.  With the increase in costs for medical and dental insurance for my husband and me, those costs in 2007 will consume 63.4% of my monthly pension check.  I am the family insurance provider because my husband is self-employed.  He has had some catastrophic health problems over the past two years which continue to the present time, so he is basically uninsurable through any source other than Lucent.  When I took the retirement package in July 2001, I had planned that my pension check would probably be the primary source for paying for healthcare benefits until my husband and I became social security eligible.  However, considering the current rate of annual increases and the fact that I have no faith whatsoever that Lucent will even continue retiree benefits after this so-called "merger of equals" with Alcatel, my primary objective in 2007 will be to try to find a job with benefits to carry us through the next six years.

"Frontline" had a documentary on television the other night discussing this very issue, and the consensus was that the new paradigm for current and near-future retirees will be that the majority of the population - what used to be the "middle class" - will never be able to quit working.   So much for the "golden" years.

Yvonne Storey

11/8/06

My medical insurance almost tripled from 2006. If I keep the same coverage in '07, it will cost almost 25% of my retirement. Not bad unless I want to eat and continue to live in my home. I am another retiree becoming more and more dissatisfied with a company that I spent over 30 years with in Columbus.

11/8/06

My wife and I are facing a 42.5% increase from $647 to $922 per month [for healthcare premiums, without dental].  Unbelievable!

Bob Roche

11/8/06

The increase for my share of the medical insurance premium went up by 46% from this year to next. This is for the default United Healthcare option for a single person. This year the monthly premium is $260.67/mo. Next year it will be $380.08/mo. Outrageous.

Paul R. Smith

11/7/06

I am one of those being greatly affected by Lucent reneging on their promises of medical coverage.
My current monthly pension check is for $2,007.97 a month, I now pay $704.92 for medical and dental. My 2007
 medical coverage will now be $1,004.15. After taxes and medical that leaves me with $818.82 a month pension. I was receiving $1118.05.

 

As a result of the increases in medical, I had to look for employment and at almost seventy years old not to many opportunities were available. The only work I could find was an evening custodians job at the local school which I have accepted.

 

It now looks like I am destined to work till the day I die, thanks to Lucent.

11/7/06

I retired from Lucent in Columbus, Ohio on July, 2001. The first check I received from Lucent the company deducted $17.07 as the medical premium for me, my spouse and dependent son. The medical payment went up to $54.25 in the year 2002. The premium went up to 140.83 for the year 2003 for myself and my spouse since my son was 23 by then. The payment went up to 221.49 for 2004 and stayed the same for 2005 and 2006 (Though Co-payment increased and 10% of lab expenses were to be paid by retirees were added during that time).

My premium is going up from $221.49 to $449.56 for the year 2007 (|more than 100% increase). The medical premium will be 27.9% of my pension that I accrued during the 23 years of my service with ATT and then Lucent.

Between 2001 to 2007 my medical premium has gone up from  $17.07 to 449.56.  2008 seems like another rate hike year in the cards. Since I am only 61 years of age at this time, I wonder what my premium amount is going to be by the time I will be 70 or older.

After all these years of service, it seems like you need to be either CEO or CFO to enjoy the fruits of your service but the middle or lower echelon management is there ONLY TO SERVE and not much more.

Thanks for the opportunity to express myself.

Chandra K. Chaudhuri

Columbus, OH

11/7/06

11/7/06

As a Lucent 2001 retiree, I was shocked to see the enormous increase in my healthcare premium for 2007.

                             Medical (Individual)               Dental (Two)

2006                        $129.84/mo                        $77.85/mo

2007                        $249.25/mo                        $82.89/mo

Increase                  $119.41/mo                        $ 5.04/mo

% Increase               92.4%                                  6.47%

I certainly didn't expect to see a $1500 annual increase in premiums for the coming year and that doesn't even include deductibles and co-pays.  I can understand sharing some of the costs; but, it's a shame that Lucent would pass on huge increases like this.  And, what are we to make of pronouncements of 7.8% projected increases issued only a month ago and then find that that doesn't even come close to reality.

11/7/06

Having received the message from the LRO regarding 2007 enrollment and the increase in premiums, I too am afffected as I know many other retirees are.

I retired in 2000 and at that time my monthly premium for medical insurance was around $50.00 a month.  For the year 2006 the monthly cost for myself and my husband is $221.49, which is for United HealthCare POS.  The cost for 2007 for United POS will be $449.56 (more than 100%).  I currently receive monthly after taxes and insurance $1224.82.  This increase will be a severe hardship on us.

Even thugh the coverage is the same, I will be paying more each month, but co-pays are more and deductibles have increase.

I have never been under more stress than I am now.  This is suppose to be our "Golden Years"....I don't see any "Gold"......only "RED".

Rosemarie Sulsenti

Davie, FL

11/6/06

I am a Single male that retired from Lucent.

This year i have had deducted from my small pension the amount of $97.13 for Medical and $35.45 for dental.

The new Benefits Package shows that to keep the same Benefits with Aetna POS, I will have to pay $216.54 per month.

I can get Aetna Basic POS for $96.94per month. Is it worth it ???

I do pay for Dental coverage at $35.45 per month. I have been using that same Dentist for about 5 years with no problems. This year, I went for a cleaning and it was rejected. Why am I paying over $400.00 a year and now I have to pay for a cleaning??

11/6/06

I would like to respond to your request for information regarding the effect of Lucent Technologies increases of healthcare and prescription drug premiums.

My husband, Steve McLaughlin, retired from Lucent in July of 2001 after 31 years, 7 months of service.  With the offer in place at the time of his retirement, he was credited with an additional 5 years of service.  His annual gross retirement income is $33,710.00.

I retired in June of 2004 with 16 years of service.  My annual gross retirement income is $15,939.00.

As of July, 2004, our total gross monthly retirement income was $4,137.48. 

When I retired, my healthcare premiums were covered by my husband.  Our cost, per month, for a 2-person, 0 medicare plan, was $221.49.  Our cost, per month, for dental care was $25.00 each.  This money, $271.49 per month, represented 6.5% of our income.

Starting in January of 2005, the cost, per month, of a 2person, 0 medicare health plan,was $515.87, an increase of 133%.  The cost of our dental plan premiums increased to $32.00 each per month, an increase of 28%.  This money, $579.87 per month, represented 14% of our income, an increase of 7.5%

Starting in January of 2006 I was no longer eligible for coverage by my husband because his annual salary prior to retirement was greater than $65,000.00.  The cost of an individual health plan for my husband was $129.84 per month.  My cost for an individual health plan was $424.21 per month.  This money, $554.05 per month, was an increase of 7.5%.  Our dental plan premiums decreased to $27.52 each per month, a decrease of 15%.  This money, $609.09 per month, represented 14.7% of our income, an increase of .7%

Starting in January of 2007, the cost, per month, for my husband's individual health plan will be $249.25, an increase of 92%.  My monthly health care premium will be $543.62.  This money, $792.87 per month, is an increase of 43%.  Our dental plan premiums will decrease to $25.72 each, a decrease of 6.5%.  This money, $844.31 per month, represents an increase of 38.6% per month to maintain health care and dental coverage for 2007, a full 20% of our GROSS RETIREMENT INCOME, an increase, per month, of 6.3%.

From July of 2004 to January of 2007, my husband and I have gone from paying $271.49 per month to $844.31 per month, an increase of 211%. 

Dawn McLaughlin

11/6/06

I would have been pretty happy with an 8% increase to my medical coverage. Mine went from $221 to $450 per month for my wife and me. Now we are trying to figure out how we are going to make it. This is not what I expected when I retired after 30 years of service in 1998.

Thomas H Gilbert

Lecanto, FL

To: Russo, Pat

Sent: Monday, November 06, 2006 8:00 PM

Subject: RETIREE BENEFITS

Pat,

I see we received another substantial increase in our Health Care Benefits. Mine went from $690 a month to $860 a month.  If I calculate right I believe this is about a 25% increase.  Last year my Health Care Benefits increased from $515 to $690, an increase of 34%. In 2004 they went from $140 to $515, an increase of 367 %.  If I calculate the total change from 2003 to 2007 the increase is 614%.  I do not believe that the cost of benefits could possibly increase by this much in a 4-year period.  If I added in the cost of dental it would be even more.  A friend of mine who is still a Lucent employee, whom I will not name, pays about $34 a month including dental for the same coverage.  I understand that health care costs have increased but I do not see how Lucent can justify increases of this magnitude.  Maybe it reflects the mismanagement by Lucent Executives such as Rich McGinn spending $50 million of Lucent's money to build a golf course and then when Lucent did terminate him, he was given a $20 million plus severance package in addition to his $1 million retirement.  If you think I am bitter, you bet I am after giving 31 years of my life to helping AT&T and Lucent grow the business including 23 years in international and after retiring being treated like this! I feel that the least Lucent could do is treat their retirees better than this but I feel this will fall on deaf ears!

Thomas E. Swanson

Pawleys Island, SC

11/6/06

I retired in 2000 and am now 61.... I have not received my benefits package in the mail but, I got info from the on-line site....my costs have gone up for my wife and I to $863/month...a 25% increase from last year.

Time to go back to work.

Jim Quintas

Palos Park, IL

11/6/06

I got my package. My premium doubled and then some. WOW!

Ralph Morrissey
Pasadena, TX

11/6/06

I received my benefit enrollment package over the weekend.  I expected some increase, but I was not prepared for what I saw.  The new cost for my "Default Coverage" had increased from $97.13/mo (individual, I had to drop my wife's coverage last year and let her obtain coverage through her job as a teacher) to $216.54 - an increase of 123%!!!  Relative to my gross pension payment, that translates to an increase from 5.9% to 13.1%. 

I don't know where to go to find out how such outrageous increases are "justified" by the overpaid executives who "managed" the Company I left in 1996 into the joke it is today.  At this point, my only options appear to be to risk the "Basic" healthcare plan and hope I don't have any serious health problems, or go back to work to insure that the current gang of Lucent executives can continue to receive bloated compensation for driving a once-respected organization further toward oblivion.

Will my wife and I survive?  Sure we will.  I didn't struggle to get to this point in my life to lie down and roll over for Lucent Technologies.  But, yes, our dreams and plans WILL be adversely affected - and I'm mad as hell!  I did everything my Company asked of me for 25 years - and I did a pretty good job of it if I do say so myself.  It's just plain wrong for the Company to undercut the benefits I earned, and that were promised to me to keep me performing during my working years.  I am not deceived by the smoke-screen.  I am being forced to pay for poor management decisions, while they are being over-compensated. 

Thanks for all your efforts on behalf of us retirees.  I'm proud to be a part of the LRO!

Walt Horne

Fairmount, GA

11/6/06

I retired in 2001 and my medical insurance for two people was 59.00. In 2002 it was increased to 221.00,and now 2007 it changes to 449.00 (no Medicare; no dental). We were promised that Lucent would pay 90% of our medical when we took the retirement package. I hope that woman running can now give herself a large bonus, because we are paying for it. Soon there will be no pension but all health care!
                                                                       

Larry W Owens

11/6/06

I have been reading some of the blog postings about the health insurance cost increases for 2007. People are quoting increases from 2 to 20 & 30 %. My increase is over 100% from $221/mo to 449.56/mo. This is outrageous.

Louis Leblanc

Shreveport, LA

11/6/06

I retired on 12-30-99. This drastic rise in our healthcare for 2007 is now going to cost me close to one fourth of my total retirement and if you look at my take home $$ it is one third. We have not had an increase in our retirement check since I retired, it just keeps coming down and every thing keeps going up. I have had to get a job just to make ends meet.

H. W. Reynolds
Effingham, S.C.

11/6/06

I just received my Benefit "Choices" package.  The increase is more than the 7.8% rate for health care.  My increase is 246+%...from $156.07 to $384.14 and the Traditional Indemnity Coverage has been dropped.  I live in a remote area, either 50 miles or 80 miles from larger cities that might have Dr.s in the POS networks.  80 miles to Dr.s in the previous POS network.

I of course will be checking for participating providers in the new networks, but this could be

devastating to us.  We are care givers for my wife's mother, who is a Hospice patient in her home...ie...we cannot just pick up and move or easily take a full day off for Dr. visits.

I was one of the people that were told that I would have the same heath care I did when I left Lucent for the rest of my life.  This was a phone conversation. I did ask for a written confirmation and received a "general" letter which was unsigned.

God help us in 2008. 

11/6/06

11/6/06

I have a chronic illness. Lucent's costs have gone up BUT there are still out-of-pocket maximum's with both the drug and medical plan. I believe the 2007 out-of-pocket maximum is the same as 2006. I hit these numbers every year. Once the out-of-pocket is reached, our plans pay 100%. I am worried that 2008 will see our policies not have max out numbers. Rising policy payments and increased out-of-pocket limits are an issue, but the total loss of out-of-pocket caps would be much more onerous.

Valerie Marr

Morris Plains, NJ

11/6/06

I received the Lucent healthcare package yesterday and thought I would pass along the info on my cost increase. If I keep the same medical plan option (not sure how much the coverage is reduced!) for next year, it will cost me 25.1% more, with a monthly premium of $862.80. If I enroll in the same dental plan option for next year the cost increase is 6.5%, with a monthly premium of $82.80. 

I would sure settle for the Hewitt Assoc projected increase of 7.8%! It is clear that a sub-set of retirees are carrying the load for healthcare and subsidizing healthcare for the current employees. This unwarranted healthcare increase sure appears to be a vindictive move by Russo and her cronies to show retirees just how much disdain they have for us.  

11/6/06

I am a retired Lucent Technologies management employee. Once again as we do every year at this time, I received my healthcare enrollment package for 2007. I have been surprised many times in the passed few years with the increases in medical rates. Mine have gone up from $10 (in 2003) to $483 (in 2005) and $202 (in 2006), a month for Keystone Healthcare Plan East HMO. I was floored when it increased to $483 a month in 2005. Now for 2007 to keep the same provider it will cost me $933 a month. This is an increase of $731 a month on a retirement income. The cheapest rate offered, means changing providers. This would cost me an additional $336 per month, costing a total $538. per month.  Just maybe one of your readers, a politician, Keystone insurance agent or some healthcare expert can offer a reason for this unjustified increase. I did not include Lucent because I know they would blame it on the provider.

In my 63 years of existence I am on no medication. I consider myself to be a healthy senior.

This medical situation all started with our great politicians letting companies mess with employee’s benefits. Lucent did it with their retired management employees when it instituted the policy if a person made over a certain amount (salary while working) it would no longer cover medical for their spouses. The Company sent management retirees a letter stating that they would have liked to spread the medical cost to all employees, but the politicians would not let them. Sounds like discrimination to me.

I can only guess, but it seems to me that the insurance companies along with the other corporate world giants are playing a game with their retired senior citizens. The pattern suggests forcing one out of a plan and into another. This puts them in a class with the cut throat CEO’S that have and are still playing games with the retirement funds. Funds that were earned over many years of dedicated service. If these funds were not messed with there would be sufficient funding for all even at today’s ridicules increases.

Paul Pentecost

Langhome, PA

11/6/06

11/6/06

My premiums went up from $689. to $862. A 7.99% increase. The increase is 26% of my pension. I am 58 years old so Medicare is in the future for me and my wife who is 55. Hopefully, Medicare is still around!

I have been looking around for alternative insurance from other sources and can't find anything comparable. I'm just glad we still have it.

Keep up the great work! I can't believe how many retirees don't belong to the LRO and NRLN. I forward all information I receive to my fellow retirees from Lucent and they count on me for the information. When I ask why they don't join, I get mixed response. 

11/5/06

My thanks to you and your staff for all the work you have done and are doing.

What our former employer has done to the retired managers of Lucent is truly shameful. It is hard to believe the people who they are destroying, are the same ones who gave so much for so long. It appears the union understood how they work better than we did. At the time we thought we were part of the "team". I am sure most of us now feel we were duped and made fools of.

Since retiring in 1990, I have been fortunate enough to move on with a second career as a financial planner, but realize many others could not do that because of age, health or family conditions. Through your efforts we have a voice and perhaps we can have a fair hearing and our day in court. Keep up the good work and the fight for equal treatment and promises made.

Thanks again or all you do.

John Lalley

11/5/06

11/5/06

11/5/06

My insurance costs were increased from $530/mo. [in 2006] to $670/ mo. [in 2007] Looks like 25-26% to me. Lucent is screwing us beyond belief!!

I am on Medicare thru Kaiser and my wife has standard Kaiser. 2-3 years ago Lucent stopped paying for my wife’s coverage based on their formula at that time. I fought this with them for one year because they were not using my correct base pay at time of retirement. They were using what at the time of my retirement was "Full Salary Equivalent" which included bonuses and other incentives. In any event they would not listen. I imagine many others were in the same situation.

 

Back to the current issue, I retired in 1994. My monthly pension is $3,091. My 2007 medical insurance cost is now 22% of my before taxes pension. As I stated before
this current medical insurance increase is 25% over last years cost. I know others whose pensions are smaller are in much worse shape than we are.

Thanks for all you are doing to help!
 

11/5/06

--Upcoming 2007 medical costs for spouse & self: $911/month
--Upcoming 2007 dental costs for spouse & self: $84/month
--Upcoming 2007 prescription drug costs for spouse & self: $75/month
--Total medical, dental and drug costs: $1,070/month
--Monthly gross pension: $2000
--Percent of pension that medical, dental and drugs will consume: 53%

--Service: 24 years with AT&T/Lucent
--Retired: 2003
--Age: 53

11/5/06

My husband worked for LTV Steel.  He lost all of his health care benefits in 2001.  Then in late 2001 the Company declared bankruptcy and he lost 60% of his pension.  Of course that is only going to get worse as the PBGC will be bankrupt in the next few years also.

I wish I had copies of all the letters I have sent to my Elected Officials in both Ohio and Florida.  I have been writing about this subject at a rate of 3 times a year since 1997.  I wish the whole country would get behind this critical issue.  Maybe then something would get done.  There absolutely has to be legislation that will protect the millions of middle class Americans that are not protected by a Union Contract.

Enough of my rambling.  My health care cost will double for 2007.  It is increasing from 13.65% of my pension to 27.25% of my pension. My 2006 monthly health care premium is $156.07.  It will increase to $384.14 in 2007. Neither my husband or I are on Medicare. I know cost are escalating out of control but they have not doubled in the last year.  I would like to know if Aetna doubled the cost of our Health Insurance.  Somehow I don't think so.

I have been madly looking for work and have finally found a job in a Call Center.  I start tomorrow, November 6th.  Ironic that this is the first day of open enrollment.

Yes, I certainly read the ominous warnings about the changes that will occur for 2008.  My assumption is that they will stop funding the Health Care Cost entirely.  I am sure that they will provide us with a group plan that will allow us to use our entire pension to pay for our health care.  What a Thank you for those of us that built this Company.  We wouldn't want the Pat Russo's of the world to suffer any financial hardship.

I am appalled that this just continues to go on and it doesn't even get any Media Coverage.  I just am glad that all of us Baby Boomers Vote.  I just pray that we make them pay for not moving in the right direction.

I am certainly hoping that [U.S. Senator] Mike Dewine, one of the Bush Puppets, does pay with a loss of his current career.

Even though it never seems to help, thanks for listening.

Thanks for the LRO efforts.  I have sent in my annual dues.

11/5/06

          I retired in October, 2001. My health care cost were $54.00 a month for my wife, my grandson ( we have legal custody) and myself. That was approx. 3% of my pension. This of course has increased dramatically over the last 5 years. Beginning in January my cost will be $869.00 A MONTH! this is almost 24% of my pension! That does not even take into account the co-pay increase or the increase in the deductible! I figure that over 35% of my pension now goes for health care!
          I always read the articles about how hard it was for some retirees to survive on their pensions but I never dreamed I would become on of them! I worked for Western Electric, AT&T, and of course Lucent for 40 Years and this is what they do for their management people. I bargained many contracts with the 3 different unions we had in Columbus and always felt I did everything possible to help the Company but I must admit that now I wished I was a Union member because they are not getting killed by the greedy, ungrateful, incompetent leaders of Lucent! I am not eligible for Medicare and need two more years for my family to go through this, hopefully then my cost will be reduced.

 

11/5/06

Having just received my "yellow package", I decided to tell my story in the attached spreadsheet and bar chart.  Unfortunately, I wasn't able to "fold in" the gradual reductions in the health benefits over the period reflected in that bar chart, which Lucent implement made via increased out-of-pocket expenses in some categories.  These, of course, add to the financial hardship of many retirees.

As it concerns my coverage, it includes my 23-year-old daughter to the end of 2006.  Yet, even with her becoming ineligible, the coverage for my wife is about 90% of the total.  My wife is 59, so she won't become eligible for Medicare till the year 2012.  The few outside plans that I checked were more expensive than Lucent's current cost, which means that I'm stuck!

Joe Grauman

Union, NJ

11/5/06

11/5/06

I retired in 1987 after 32 years with Western Electric/AT&T. I was a first line supervisor. For 25 of those years, I was involved in the manufacture of telephone network systems. I have seen my pension shrink due to the cuts that have been made, mostly since Lucent was formed in 1996. I retired as an AT&T employee (28 years WE & 4 years AT&T) in 1987. I couldn't understand why I was assigned to Lucent? But soon found out that I didn't have a say in the matter!

I can remember when our co-pay for prescriptions was $15 for three months supply and our deductible was $100. We had Medicare Part B refunded (thats $177 less a month now for us). We had dental coverage. I could rest easy with my $50,000 death benefit for my wife that is now gone. Now we are faced with a merger that is so scary for us older folks we don't know what to think. I must admit, I did not foresee a time when good ole Western Electric would let all their good people down like this! I was a loyal and hard working person and I know many, many others who were also, and we did not deserve this kind of treatment from the new powers that be.

 

I'm hoping that the court cases go our way for a change, and we can get our promised benefits returned. Thanks for hearing me out.

11/4/06

A LITTLE HISTORY FIRST.  

11/4/06

After reading Ken Raschke's letter, I thought I would pass on the increase amount in health care costs I experienced.

My wife and I will pay $684.66 in January 2007.  This is a 9.8% increase over the $623.45 I am now paying.  I am on Medicare (my wife is not yet eligible) and we have the Lucent - Medco prescription plan.  No other benefits.  I retired in 1996 after 32 plus years service with Western Electric / AT&T / Lucent.

The $684.66 a month will represent 14.5% of my monthly pension amount. 

I am disgusted with the treatment retirees receive when I learn of the salaries and benefits accruing to Russo and the other non-performers.  It is a travesty of fairness and justice and a slap in the face to those who built the original Bell System and made it operate as the finest communication network in the world.

Former colleagues and co-workers are outraged at the treatment retirees are receiving.

Bill Collier

Somerset, NJ 

11/4/06

          I AM A LUCENT TECHNOLOGIES RETIRED PERSON , WHO HAD 38 YEARS WITH THE COMPANY BEFORE FORCED RETIREMENT.

          THE COST OF MY MEDICAL BENEFITS FOR THE 2007 YEAR HAVE RISEN DRAMATICALLY FOR THE SAME COVERAGE.  MEDICAL BENEFITS FOR 2006 HAVE BEEN $96.31 PER MONTH AND FOR 2007 THE SAME COVERAGE WILL SKYROCKET TO $165.21 PER MONTH.  A RISE OF APPROX 71%

          MY DENTAL PLAN HAS ALSO RISEN FROM $77.85 FOR 2006 TO $82.89 FOR 2007.  A RISE OF APPROX. 6.5%.

          I AM CURRENTLY NOT ELIGIBLE FOR MEDICARE AND THUS HAVE TO PAY THESE EXPENSES FROM MY  MONTHLY PENSION CHECK, WHICH IS A FIXED AMOUNT FOR THE FUTURE.  MEDICAL BENEFITS FOR 2006 HAVE COST ME APPROX. 8% OF MY  PENSION CHECK AND FOR 2007 THIS AMOUNT WILL GO TO OVER 11%.  WITH 2008 PROMISING EVEN HIGHER COSTS TO ME.

          WHEN I STARTED WORK WITH WESTERN ELECTRIC CO. (W.E. Co.) I WAS PROMISED THAT MY MEDICAL BENEFITS WOULD BE TAKEN CARE OF BY THE WISE INVESTMENTS MADE BY THE COMPANY TO INSURE THAT MY PENSION AND BENEFITS WOULD BE  ADEQUATE FOR MY NEEDS.  WHEN WESTERN ELECTRIC COMPANY BECAME AMERICAN TELEPHONE AND TELEGRAPH (A.T.&T.) THAT PROMISE WAS REMADE TO ALL EMPLOYEES.  NOW THE NAME OF THE COMPANY IS LUCENT TECHNOLOGIES, AND THE PROMISES HAVE BEEN THAT ALL OUR BENEFIT NEEDS WILL BE TAKEN CARE OF BY THE HUGE AMOUNT OF MONIES IN OUR PENSION FUND -- OVER 34 BILLION DOLLARS (U.S.) AGAIN THE NAME WILL CHANGE TO LUCENT/ALCATELL AND THE PROMISES ARE GONE.

          I HAVE LIVED UP TO MY END OF DEAL, BY WORKING QUITE WELL AND QUITE HARD FOR MY ENTIRE CAREER.  I KNOW I HAVE BEEN COMPENSATED FOR THIS AND THE COMPANY HAS MADE A PROFIT FROM MY TOIL BUT NOW I WOULD LIKE TO SEE THIS CONGLOMERATE LIVE UP TO THEIR END AND PAY FOR THE BENEFITS PROMISED BY SO MANY FOR SO LONG

          I HOPE THAT YOU CAN  HELP BRING THIS CONTINUING PROBLEM TO LIGHT AND HELP IN CORRECTING A WRONG THAT HAS BEEN PERPETRATED ON ALL OF LUCENT'S EMPLOYEES, BOTH PRESENT AND PAST.

THANKS IN ADVANCE,

JAMES K. BATTLE 

MAHOPAC, N.Y.

11/4/06

As a retired AT&T Supervisor in 1986, I have seen the benefit decrease at alarming rate. We use to get reimbursed for Medicare payment and dental and eye coverage. They are all gone now and biting into our retirement considerably. My co payment for most drugs now is 25 dollars and with the wife and I we use 12 drugs daily and out of the pocket at least 200 monthly now plus doctors and hospitals at our age is unreal, Thanks to my daughter being a nurse we can get some help from her now. I now have enough deductions so as not to be hurt by the Federal Income Tax, I have seen one raise in the retirement in 21 years so my fixed income is about 1988 Standard. Inflation is bout the worse thing that we experience.

Any recourse will be well received.  Thank you

Robert T McClumpha    

Roseville Ca. 95747  

11/4/06

My premiums for two people (not Medicare eligible) are going up 25% and will, beginning in January, take 47.7% of my pension payment.  Although this increase will certainly impact discretionary spending in my household,
thankfully, I am personally in a position that I can, if necessary, absorb this increase. However, if changes of this magnitude continue in future years, that situation is likely to change.  Furthermore, I concur with the LRO sentiments expressed in the letter with respect to information sharing, Lucent's ethical, if not legal obligations to its retirees, lack of flexibility and timely availability of information, especially where premium increases may cause many of us to need to explore other health insurance alternatives.  Surely, as the retired community ages, and presumably shrinks as a result of older retirees passing away, some of these rising costs should be able to be absorbed within the plan!

Harriette Robbins

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