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Future of U.S. Retiree health coverage - commitment and prices

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.

Commitment: In the 1940's, HP pioneered companywide catastrophic health insurance for current employees. However, HP never made an explicit commitment to provide free lifetime retiree health insurance in the entire history of the company. HP CEOs -- including Dave and Bill -- have always been very careful about making promises to employees that they might not be able to keep. (By the way, HP never made an explicit commitment to not lay people off. For example, see the last paragraph of the HP Way: https://www.hpalumni.org/hp_way )

The EER and other retirement documents all say: "If you qualify... your premium costs will be based on then current rates..." and "...subject to change in the future."

Service at predecessor companies. Of HPInc's many predecessor companies, only HP and DEC ever had retiree healthcare programs. Only HP, DEC, and EDS had pension plans. Over the years, HP, DEC, and EDS set aside money in dedicated trust funds to pay for those programs. Therefore, employees of other acquisitions did not get credit under HP's retiree healthcare or pension programs for service at the predecessor -- but generally did get service credit for other benefits. DEC Benefits  EDS Benefits

DEC retirees report that Compaq -- and now HP -- have lived up to DEC's retiree healthcare commitments.

Subject to change. The Enrollment Guides say: "HP Inc. reserves the right to amend or terminate any of the plans and programs described in this retiree enrollment guide at any time." or "Hewlett Packard Enterprise reserves the right to amend or terminate any of its plans and programs described in this enrollment guide at any time for any reason."  https://www.hpalumni.org/EnrollmentGuides

Costs: Why HP group plan costs are going up. https://www.hpalumni.org/health-cost

(Oct 19, 2023)  Question? Email: info@hpalumni.org


2003: "Pre-2003 HP Retiree Medical Program" vs "HP Retiree Medical Program."

"2003" refers to the year when HP implemented the program, not necessarily your year of retirement. Details: https://www.hpalumni.org/Pre2003

2011: Retiree Health 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..."

HPAA comment: The cap is on the total expense for the entire HP retiree population. Members report that their personal cost for the same plan may sometimes go down year to year.

2015: HPInc/HPE Breakup.

"...as is the case each year, changes to retiree medical designs or premiums are possible... based on increasing health care costs. On a longer-term basis, each company [HP and HPE] will make independent decisions regarding retiree benefits, considering market, business and other factors.  As is the case today, future changes are always possible, [Emphasis added] and the separation will not change that fact..."

--Posted March 17, 2015 under "Retiree News" on  "HP Continuum" -- HPInc's official U.S. retiree social networking site. Includes details on retiree discounts -- plus benefits material not available on MyHPBenefits. Join at https://www.hpcontinuum.com 

"...your current retiree health benefits will continue for the remainder of 2015, and there will be no separation-related changes in benefits pricing or plan features. The separation will have no effect on any current treatment or inpatient care that you or your covered family members are receiving."

--From HP's August 27, 2015 message to U.S. retirees

"You and all other current US retirees will be aligned to HP Inc. and participate in HP Inc. benefits programs, regardless of which part of HP you worked in as an active employee. As such, your current HP health and insurance and retirement benefits will not be changing as a result of the separation... As in the past, there may be changes to your retiree health coverage for 2016 due to continually increasing health care costs. Such cost pressures aren’t new, and they aren’t related to or influenced by the separation." 

--from the brochure mailed to U.S. retirees in September 2015

Which HP-related companies have me classified as a retiree or former employee? Due to acquisitions and spinoffs, this may not be obvious. Check here: Which Company


Other benefits issues -- such as Social Security, Pension, 401(k), Stock, Medicare, annual enrollment, COBRA, troubleshooting retiree health coverage, etc:. HPAlumni Benefits Menu


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