Navigating AT&T Retiree Health Benefits: HRA & AON Health Exchange Solutions (2024)

Although planning for every aspect of a satisfying retirement can be difficult and stressful, it is important to digest your options in chunks. As an AT&T employee or retiree, you should carefully consider your health care coverage and reimbursem*nts.

If you have registered to participate in the Health Reimbursem*nt Account (HRA) through the AON Retiree Health Exchange (ARHE), you must also enroll in the Medigap, Part C (Advantage), or Part D (Prescription Drug Plan, Dental Plan, Vision Plan) to avoid forfeiture of your participation in AT&T Healthcare and your HRA, which will result in the termination of coverage for your dependent under AT&T's Healthcare. Currently, you may be wondering, "What is an HRA?" An HRA is a tax-advantaged account that is funded solely by your employer and can be used to pay for qualified medical expenses covered by your plan.

Enrollment in Advantage, Medigap, and/or Medicare Part D Prescription Drug Coverage purchased through the ARHE not only provides a broader scope of health coverage, but also provides eligible former employees with a $2,700 HRA Crediting Amount. In addition, an eligible dependent enrolled in one of the three options may be eligible for a $1,500 HRA Crediting Amount. Consider that if a dependent is only enrolled in Dental or Vision coverage through ARHE, they are only eligible for a $200 HRA credit. If you are eligible for HRA Credit Dollars for a partial year, they will be prorated monthly as follows: $225 per month for an AT&T retiree and $125 per month for a qualified dependent.

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  • If you already qualify for the $2,700 HRA credit and you add Dental and/or Vision coverage, you must ensure that the ARHE does not reduce your credit to $300, as it has been known to do on occasion.

    You each maintain your own ARHE account if you are married to another AT&T retiree. Both of you qualify for the $2,700 HRA credit. If a person is listed as a dependent of another, the ARHE database can only assign a maximum HRA credit of $1,500. In this instance, you must contact ATT to correct the HRA amount, which should be $2,700 per individual.

    If you have leftover HRA Credit Dollars from the previous year, they will carry over into the current year. You may use your previous Carryover HRA Credit Dollars to reimburse eligible expenses from the prior year. To accomplish this, you must submit a Reimbursem*nt Claim to the Claims Administrator by March 31st of the current year. You may also use HRA Credit Dollars from the previous year for eligible expenses incurred in the current year. This eligibility begins on April 1 of the current year, when the Carryover HRA Credit Dollars from the previous year are combined with the Carryover HRA Credit Dollars from the current year. You cannot use HRA Credit Dollars from the current year to pay for eligible expenses from the previous year.

    AT&T retirees who are married to another AT&T retiree are eligible for separate ARHE accounts if both retirees enroll. When two AT&T retirees who are married and on the ARHE are eligible for the $2,700 HRA, both retirees are eligible. On occasion, one of the "Married To One Another AT&T Retirees" was listed as a Dependent in the electronic file sent by the AT&T Benefits Center to the Aon Retiree Health Exchange for the ARHE database. When this error is made, the ARHE will only credit the HRA with $1,500 for a dependent, as opposed to the $2,700 for which they are eligible. If the "Dependent" is in fact an AT&T retiree, ATT should be contacted to set up a new and accurate electronic file to be sent to the ARHE. Please be aware of this confusion if you and your spouse are AT&T retirees when you transition to the ARHE. If you have additional questions you should consider speaking to your HR Department as The Retirement Group is not affiliated with ATT or ARHE.

    Reminder Regarding HRA Health Reimbursem*nt Accounts for AT&T Retirees Participating in the Aon Retiree Health Exchange

    As long as you remain a program participant, any unused HRA Credit Dollars at the end of the year will roll over into the following year. One may use Carryover HRA Credit Dollars for reimbursem*nt of eligible expenses from the previous year. You must submit a Reimbursem*nt Claim for eligible expenses incurred in the previous year to the claims administrator by March 31. You cannot use this year's regular HRA Credit Dollars to collect reimbursem*nt for eligible expenses from the previous year. On January 1st, HRA Credit Dollars became available.

    The HRA, ARHE And AT&T Retirees

    The HRA Health Reimbursem*nt Account with healthcare coverage on the Aon Retiree Health Exchange ARHE for certain AT&T Retirees and their Dependents began on January 1, 2015 for the first time.

    AT&T retirees and their dependents who are under 65 and on Medicare due to disability will transition to the ARHE and HRA on January 1, 2017, after 24 months of disability coverage.

    Visit the AT&T Benefits Center website and, on the homepage, click on SPD/SMM/SBC/Legal Notices for additional information. The relevant SPD and SMM documentation will be displayed. On your communication device, you can View and/or Download. You may call and request hard copies of the SPD and SMM documentation, and we will mail the 8-by-11-inch booklets to your home.

    Sitting down with a Retirement Advisor to discuss your situation is a great way to alleviate stress during these perplexing times, despite the fact that everything may still appear to be quite confusing. Remember that you are not alone and that we are here to assist you.

    Consider creating a cash flow analysis and budget before you resign or retire in order to determine how to take severance (if offered), how to take the pension (if available), and whether you should relocate for one to two years to reach the Rule of 75.

    The Retirement Group can provide additional information about your AT&T Health Benefits if you would like to learn more.

    If you have questions about a potential AT&T surplus or would like more information you can reach the plan administrator for AT&T at p.o. box 132160 Dallas, TX 75313-2160; or by calling them at 210-351-3333.

    Navigating AT&T Retiree Health Benefits: HRA & AON Health Exchange Solutions (2024)

    FAQs

    Is AT&T dropping retiree health benefits? ›

    Since 2022, AT&T no longer offers a subsidy to help cover your monthly premiums. Once you turn age 65 you are Medicare-eligible, and will have to transition out of AT&T's retiree health care plan and into Medicare.

    What is the hra with AT&T? ›

    AT&T has established a Health Reimbursem*nt Account (HRA) to help you pay for individual insurance coverage and eligible out-of-pocket expenses.

    How do I contact AT&T retiree benefits? ›

    Retiree Account Setup
    1. OneStop: 888-722-1787. The OneStop team can assist with access to the AT&T Benefits Center, the AT&T Retiree website, and other retiree resources.
    2. Employee Discount Support Center: 800-331-9010. The Employee Discount Support Center can assist with your services and retiree discounts.

    What are AT&T benefits for retirees in 2024? ›

    AT&T also stated that beginning for the benefit year of 2024 and beyond the Company will offer the company health care plan for those who are Medicare eligible through AT&T Medicare Advantage Plan and the premium for retirees will be zero cost and for a dependent $50.

    What is the rule of 75 for AT&T? ›

    The current Modified rule of 75 reads: Age and service must equal 75, and you must be a minimum of 50 years old with one exception — you qualify for retiree benefits when you have 30 years of net credited service at any age.

    What is the AT&T rule of 55? ›

    The Separation from Service exception sometimes called “Rule of 55” or “55 Rule” is an IRS provision that allows workers who leave their job for any reason to start taking penalty-free distributions from their current employer's retirement plan once they've reached age 55.

    Is there a downside to HRA? ›

    And here are the biggest disadvantages: You can't contribute to your own HRA, so you are reliant on your employer to put money in. Your employer owns the account, and you lose your HRA money if you leave your job unless you elect COBRA coverage. Money in an HRA cannot be invested and grow year over year.

    Is an HRA the same as health insurance? ›

    HRAs reimburse medical expenses, which may include monthly premiums and out-of-pocket costs, such as copayments and deductibles. Some employers offer an HRA as an alternative to traditional group health plan coverage. With some types of HRAs, you may need to buy a health plan on the individual insurance market.

    How does the HRA work? ›

    It's an employer-funded group health plan that your employer contributes a certain amount to. You use the money to pay for qualifying medical expenses up to a fixed dollar amount per year. Unused funds may carry over from year to year.

    Do seniors get a discount with ATT? ›

    Frequently Asked Questions About AT&T Phone Plans

    Does AT&T offer a senior discount? AT&T doesn't offer an official senior discount, but AARP members can receive 10 percent off their plan, and veterans can get 25 percent off their monthly bill.

    What is the AT&T retiree death benefit? ›

    In early 2021, AT&T announced a plan to cut management retirees' life insurance benefits at the start of 2022 to just $15,000 and cap the death benefit at $25,000, effective at the start of this year. Retirees were initially promised benefits dependent on their final year's compensation.

    How long do you have to work for AT&T to get a pension? ›

    How it Works. You are eligible for a vested pension benefit after five years of service, but your benefit will be negatively affected if you do not reach the age AND service breakpoints for your employment position, as shown in the chart below. You must meet BOTH minimum requirements.

    Is AT&T HRA going away? ›

    Because we'll now offer a plan with more fully featured benefits and with no monthly costs by focusing all our purchasing power with one company for all retirees, our HRA contribution will end beginning in 2024. You can continue to use any HRA funds saved in your account.

    What are the retirement benefits for AT&T? ›

    List of Benefits:
    • 401(k) with Company Contribution.
    • Pension (availability varies by role)
    • Basic Life Insurance.
    • Health Savings Account.
    • Flexible Spending Account.
    • Financial & Legal Advice / Services.
    • Tuition Assistance.
    • Identity Theft Coverage.

    What is the senior age for AT&T? ›

    Wireless Plan Discount for Seniors Age 55+ | AT&T Wireless.

    Do you lose health benefits when you retire? ›

    There is no break in coverage between your employment coverage and your retirement coverage. If you don't want your health benefits to continue into retirement, you can cancel your coverage through your employer before you retire.

    Did AT&T sell its pension plan? ›

    The AT&T purchase from the two Athene Holdings subsidiaries transferred $8.1 billion in U.S. pension plan liabilities and the responsibility of paying benefits to about 96,000 AT&T retirees and beneficiaries, and the two Lockheed Martin purchases in 2022 and 2021 transferred a combined $9.2 billion in U.S. plan ...

    What is AT&T retiree CarePlus? ›

    Your benefits under the CarePlus Program includes both Experimental CarePlus and Expanded CarePlus. Experimental CarePlus is an optional supplemental medical program designed to cover specific procedures not covered under AT&T's basic medical programs.

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