The following was sent to 9 major daily newspapers in the five state region and Texas on May 20 after learning of the $10,000 in coverage awards granted to past and present members of the SBC Board of Directors.

Dear Editor:

I find it incredulous that SBC has found it proper to provide each member (active and retired) of their Board of Directors up to $10,000 a year in Medical, Prescription Drug coverage, telephone services and other benefits at a time when they have continued to increase costs and reduce these same coverages for it’s retirees.

Many members of the SBC Board can well afford these kinds of costs while folks like myself who have dedicated their life to the “phone company” must dig deeper and deeper each year into their fixed income to pay for medical and other expenses.

You’d think that quite the opposite would be true. That at a time when the benefits are being pared and the SBC share prices are languishing near all time lows, Chairman Ed Whitaker and the SBC Board of Directors would forego these kinds of perks.

Bruce Beckman
Association of Ameritech/ SBC Retirees
Downers Grove, Illinois
 

Letter to Karen Jennings - SBC

Subject: Assoc. of Ameritech/SBC Retirees

Karen Jennings

Thanks for taking the time to talk to Bruce Beckman and me at the SBC annual meeting.

Congratulations on the negotiations with CWA. It appears to be fair for both sides.

As we discussed at the SBC Annual meeting, our membership is extremely concerned with the health care and pension benefits mostly management) earned while employed. At the same time, we are committed to the financial integrity of SBC. In addition, many of us have lobbied hard on behalf of SBC and its regulatory relief. Retirees as a group have many political contacts and we work them.

Now that the CWA negotiations are over, it seems to me that it is appropriate that we meet.

Our main issues are:
More effective communications with retirees. We have discussed some of the problems in detail with your staff members. However, it is important that retirees be given accurate information.
We need to know what SBC intends to do with the health care benefits for retirees (management)? We have seen significant premium increases and there are extreme
premium variances between SBC entities. Again, these issues were detailed in our earlier meeting in Hoffman Estates, Il.

Many members are concerned with management pension adjustments and the continuing changes with concession service.  What are the cost of living adjustments and will the concession service continue?

It was suggested by one of your staff members that we present our questions prior to our next meeting. We were rather surprised to be treated in that manner, but would rather have a frank discussion on the issues.  We fully understand the financial implications of
what is taking place with SBC and the other telco's.  However, the fact remains that the management retiree base seems to be carrying a heavier load than we ever expected to bear.

I look forward to hearing from you and again, thanks for your offer to meet.

Ralph Kolderup
Pres. AASBCR
 

 New Administrator for "Medical Expense Plan" (MEP)
Comforting Info about an SBC mailing...
...evidently sent to certain pre-1986 management retirees

The following is intended to help clarify a seven-page booklet that only a specific group of pensioners are receiving.  (It is coded "NIN: 36477" in the lower right-hand corner of the first page)

This mailing announced the change of medical benefit plan administration from Blue Cross/Blue Shield (BC/BS) to United Healthcare (UH) on July 1, 2004 and was so poorly written as to almost seem deliberately confusing.

Recipients may be further concerned because doctors and hospitals that are part of the large Advocate system in metro Chicago (and maybe others, elsewhere) do not deal with United Healthcare.

PLEASE NOTE:  The comforting news is that there are no coverage differences from the past nor is there any need to change physicians, etc. for those having Medicare as their primary insurance.  (This is according to "Andrew" who was reached by phone on 06/02/04 at SBC Connect, the outsourced Benefits Department run by Hewitt.  For the best way to get a human there, see (A) below).

He said, MEP coverage is unchanged because it is an "Indemnity" plan.  While that's very good news, whoever heard of an "Indemnity" plan?   This seems to be a new label for what's been known for 30 years as fee-for-service.  More about that in (C) below.

As for doctors or hospitals who don't deal with UH, there will not be a problem there either, Andrew explained, when Medicare is one's primary insurance.  This is because health care providers bill Medicare, not BC/BS or UH.  Then Medicare bills the secondary insurance administrator/carrier.  Since Medicare does deal with both BC/BS & UH, pensioners will be able to retain their current physician, etc., he concluded.

However "the proof will be in the pudding," so affected retirees should -- of course -- closely monitor their appointment and billing process starting July 1st.

Here is additional information that some will want to read and retain...and possibly print for friends without a computer.

(A)  The best way to talk with a human via the SBC Connect voice mail 'tree' at 1-877-722-0020 is saying "Other Benefits Questions" when that option is offered.  Then do not answer when voice mail asks for your PIN or Password...let it repeat...time will pass...this will connect you to a live person!

(B)  Calling United Healthcare and looking at their website is not helpful, at least at this time.

(C) For more on the "Indemnity Plan," read what follows below &/or click on http://resources.hewitt.com/sbc.

       Then follow these steps:

1. Log in as required [getting a password if necessary then & there].

2. This brings up a page with your personal data

3. Scroll down to "Learn More:  Benefits Manual - Health Insurance" -- click on it.

4. This takes you to a page where, near the bottom, under "How the Plans Work"             find  Medical Plan Overview" -- click on it.

5. Then, on the next page that comes up, scroll down until you find               "Medical Plan Options:  Indemnity Plan" -- click on that.

Finally, these words appear (cut-&-pasted from the website pages):

"SBC Communications Inc. Benefits Manual...

Indemnity Plan Overview

*  How an Indemnity Plan Works

Indemnity plans are sometimes called "fee-for-service" plans. They typically require you to pay your medical care provider directly for services and then to file claims to be reimbursed by the Plan.

In an indemnity plan, you can seek care from any doctor or hospital and receive benefits. Hospital precertification is required for some services to receive the highest level of benefits if you're not eligible for Medicare.

The Plan reimburses you for covered medical services according to the Plan's provisions as long as the expenses are reasonable and customary.

*  Your Indemnity Plan Options

The indemnity plan option that you're eligible for is the Medical Expense Plan (MEP)."

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(click on MEP & up comes)
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"SBC Communications Inc....  

Benefits Manual
 
Overview  Health, Insurance...

Medical Expense Plan

If you enroll in the Medical Expense Plan, here's what you pay for covered medical services:

Annual deductible:

1% of your full annual pension

    * $25 minimum
    * $150 maximum

Family--Up to 3 x individual deductible

Coinsurance for most covered services:

The Plan pays 80% to 100% of the reasonable and customary (R&C) charges after you pay the deductible.

Annual out-of-pocket maximum, not including the deductible

$5,000 per person

Lifetime maximum

$75,000

To learn how the Medical Expense Plan covers specific medical services, contact the Plan directly. The telephone number is on your Plan ID card."

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06/03/04 ~ THE END ~ The compiler of this information cannot answer individual questions