What’s happening to fairness in group rate retiree medical premiums? I want to express my concern about the health insurance premiums to retirees. I retired from GTE/Verizon in January 1999, after 31-plus years in a non-management position. At that time, I began paying the full amount of medical insurance premiums for myself and my wife as GTE, now Verizon, does not contribute to my costs. However, in some areas of the United States they do.
After the first year my premiums increased dramatically. I called and wrote the GTE Benefits Center asking for an explanation for the premium changes. I also called my insurance provider and they informed me that the rates are negotiated by GTE/Verizon and the health care providers. I did not receive any correspondence from the Benefits Center.
I then filed a complaint with the state Insurance Commissioner’s office. They communicated with the health provider and the commissioner’s office replied that they unfortunately had no authority over employers. They sent me a copy of the reply they received from communicating with my health provider. This letter states: “GTE negotiates rates with (the provider) and they requested that (the provider) rate the early retirees 50 percent higher than that of the active employees.” All my years of employment the employees contributed a partial premium but I noted that they no longer contribute anything. It appears very unfair that they can push increased premiums on retirees while removing partial premiums to active employees.
Year by year premiums increase and I have continued to pursue this with the company but cannot get them to respond to my question about the unfairness of rating early retirees 50 percent higher than active employees. It is likely that this affects other large companies’ retiree group plans as well as GTE/Verizon. If you feel that your group rate is unfair, contact the state legislative hotline at 1-800-562-6000 and let them know about it. It appears new legislation will be required to monitor and provide equity for all regarding medical premiums.
Marysville
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