Pre-Medicare Retiree’s Medical Changes

A message from President Mike Ippoliti

Pre-Medicare retiree’s medical changes will go into effect January of 2026 due to the Caps being pierced. This effects retirees below the age of 65.

Pre-2008 Pre-Medicare Retiree Health Care Caps and Alternative Options

The 2016 Agreement set the annual Cap on the Company’s Contributions towards Pre-2008 Pre- Medicare Retiree Health Care (“Company Caps”) as follows:

• Retiree: $15,447
• Retiree + 1: $30,893
• Retiree + Family: $38,639

The Agreement provides that when the cost of the pre-Medicare plan options exceeds the Company’s Caps the retiree hall be responsible to pay the excess in the form of premium contributions.

Currently Pre-2008 pre-Medicare retirees who retired on or after January 1, 2013 pay the following annual premiums:

• Retiree: $472
• Retiree + 1 and Family: $809

Beginning January 1, 2026 the cost of the pre-Medicare MEP HCP will be as follows:

• Retiree: $18,211
• Retiree + 1: $36,422
• Retiree + Family: $45,528

Resulting in the following cap excesses and annual premium contributions:

• Retiree: $2,764
• Retiree + 1: $5,529
• Retiree + Family: $6,889 

The 2016 Agreement also allows the Union to bargain alternative medical options for the Pre-2008 Pre-Medicare retirees when the MEP HCP pierces the Company’s Caps. The Union, through the Advisory Committee on Health Care (“ACHC”), successfully negotiated 3 alternative options for Pre-2008 pre-Medicare Retirees.

1. Opt-out of Verizon coverage and enroll in an HRA. The HRA amount will be equal to the Company’s Caps for the tier coverage you enroll in (Retiree - $15,447, Retiree + 1 - $30,639, Retiree + Family - $38,639). The retiree will be able to use the HRA to purchase health insurance through an exchange identified by the company and/or eligible out-of-pocket expenses.
2. Elect to enroll in the alternative MEP HCP plan. This plan uses an alternative network that the MEP HCP plan and has a different plan design (attached is a comparison of the plans and a disruption report for the different network).

   The cost of this alternative plan is significantly less expensive than the MEP HCP plan and results in retiree annual premium contributions as follows:

   •  Retiree: $1,180
   •  Retiree + 1: $2,361
   •  Retiree + Family: $2,929
    

3. Enroll in the alternative Surest Plan. Surest is a United Health Care (“UHC”) product that is designed to steer participants to providers that have better outcomes based on the rates they charge. The plan design has no deductible and a range of co-pays for certain services (attached in the comparison document). The participant would access the Surest website or App to choose a provider based on the applicable co-pay and the provider’s “rating.” This plan also has no deductible. UHC has told us that they are willing to host virtual meetings during open enrollment to demonstrate how the product works. The cost of this plan results in annual premium contributions as follows:

• Retiree: $512
• Retiree + 1: $1,025
• Retiree + Family: $1,259

The above charts and the signed agreements in Retiree Health and Welfare Benefit Changes with Verizon Labor Relations are available on our website.

• Retiree Health and Welfare Benefits Changes
• Retiree Health Care Benefit changes LOA