From former employees of HP and HPE. 

Join the HPAA's Benefits Forum Covers topics such as COBRA and retiree health benefits, annual enrollment, and transition to Medicare.

Contents:

1. HP has never made any explicit commitment in the entire history of the company.

2. Carefully compare plan details -- especially between similar-sounding group and standard open-market plans.

3. Retiree costs for *individual* Medicare policies purchased through Alight Retiree Health Solutions are going up due to reduced HP subsidy.

4. Why HP *group* plan costs are going up -- the pool of insured people and the cost cap.

HP has never made any explicit commitment.

It is worth noting that...

- HP never made any explicit commitment to provide free lifetime retiree healthcare in the entire history of the company. Details: https://www.hpalumni.org/health-future

- The EER and other retirement documents say: "If you qualify for the Pre-2003 HP Retiree Medical Program or the former Digital Retiree Health Program, your premium costs will be based on then current rates that apply under these programs." and "...the terms of the... Program are subject to change in the future."  For example, see "2012 U.S. Enhanced Early Retirement Program Frequently Asked Questions" (page 8): https://www.hpalumni.org/EER_Plan_2012.pdf  ["2003" refers to the year when HP implemented the program, not necessarily your year of retirement. Details: https://www.hpalumni.org/Pre2003 ]

- And, of course, the Enrollment Guides say: "...reserves the right to amend or terminate any of its plans and programs described in this enrollment guide at any time..."

For 2025, you may have had two alternatives for your Medicare coverage -- "group" or "standard open-market" -- depending on your HP/HPE/DEC retiree medical program.

HP first offered retirees the the alternative of HP-subsidized standard open-market Medicare plans for 2017.

Over the past few years, employers -- including HP and HPE -- have been moving from employer-administered group plans to more cost-efficient employer-subsidized standard open-market plans.

1. Group Medicare coverage was purchased from insurance companies by HP or HPE and administered by the HP or HPE Benefits Center.

Group plans may cover dependents or be better for those with pre-existing conditions or high medication costs. May have a broader network and service area, more comprehensive coverage, or different out-of-pocket costs and yearly limits.

Premiums reflect the cost of care only for the HP or HPE retiree population -- and have been dramatically increasing for several years.

HP for 2025 dropped Tufts and announced that no group plans will be offered by HP for 2026.

HPE for 2025 dropped Harvard Pilgrim, but offered plans from Surest, Anthem, Kaiser, and Hawaii Medical Service Assn -- depending on where you lived. Nothing has been announced by HPE about 2026.

Note: While some group plans are called "Advantage" plans, they do not have the same features as Advantage plans on the open market -- such as those purchased through the HP/HPE subsidy program at Alight Retiree Health Solutions -- and are regulated differently.

Details and member advice on group plans: https://www.hpalumni.org/medicare-group

2. Standard open-market Medicare policies are available through insurance sales agencies and directly from health systems and insurance companies. Premiums are based on the highly-competitive open market and across all customers of the insurer. Sales agencies are paid a standard commission and monthly admin fee by the insurance company.

There are government specifications for open-market Advantage and Medigap ("Supplement") policies. A carrier may add additional features, but can't change the required basic coverage. Advantage plans generally limit non-emergency care to doctors, hospitals, and other providers within a specific network -- and often require prior authorization for services, drugs, or specialists.

If you have a Medicare subsidy from HP or HPE, you must purchase from a specific nationwide sales agency -- Alight Retiree Health Solutions. You pay the list price for the plan. The HP or HPE Benefits Center reimburses you monthly until your annual subsidy is used up.
Notes:
- To receive an HP or HPE subsidy (via a special Retiree Reimbursement Account) you must purchase through Alight Retiree Health Solutions.
- Alight offers most -- but not all -- available open-market plans.
- Some plans are not in the Alight online plan selector -- you must ask for AARP/UHC plans.
- Alight Retiree Health Solutions is a separate company from Alight Benefits Administration, operator of the HP Inc Benefits Center (and HPE Benefits Center as of 4/1/25.)

Details and member advice on open-market plans: https://www.hpalumni.org/medicare-open-market

If you decline HP/HPE medical coverage: Depending on your situation, you can lose the ability to re-enroll in HP/HPE coverage -- and your surviving dependents will not be eligible for HP/HPE coverage. Details:  https://www.hpalumni.org/reenroll-restrictions

You must carefully compare the alternatives yourself. The Alight Retiree Health Solutions sales agency does not have info on the HP/HPE private group policies. Member advice on how to compare policies: https://www.hpalumni.org/health-compare

See Medicare subsidized by HP or HPE

Why HP/HPE pre-Medicare and Medicare group plan costs are going up: 

a. Group plans are customized.

b. The pool of insured people.

HP Personnel VP John Doyle predicted this problem in 1978: "What will really change the make-up of the company some day is when we cease to grow in employment at the annual rate of 10-15 percent. Our average employee age is still in the mid-thirties and only going up one year every four to five years. When we are a fully mature slow-growth company, the average will go up faster."  Measure, September 1978

c. The cost cap.

A cap on HP's retiree health spending was announced by interim CEO Robert Wayman in 2005 and gradually started to take effect in 2011. From your Annual Enrollment Coverage Statement: "Future retiree medical cost-sharing reminder. ...HP limits the amounts we contribute toward monthly coverage costs to no more than the level of HP's average coverage contributions in 2010. This means that any cost increases from 2011 on are paid by participating retirees. HP may also make other changes to contribution amounts based on business needs..."

Really study your Enrollment Guide!

Tip: Lots packed into an Enrollment Guide. Even if you have a paper copy, download the current file and use Adobe Reader's search feature to find specific words or phrases (Ctrl-F, F3, or Command-F.) https://www.hpalumni.org/EnrollmentGuides

Last word.

One member who didn't get retiree health coverage said: "it was a good run. As far as I'm concerned, I'm square with the house."

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