DP3 has been asked many questions about the 2010 Open Enrollment Medical Insurance Options, including the new COBRA opportunity, our proposed VEBA plan, and how it all relates to the HCTC. Below is a list of common ones. Before you write us with your questions, we urge you to carefully review the Delta Benefits Direct web page where all the open enrollment information is posted, along with the premium information and plan descriptions. Additionally, our web site already has numerous articles about these topics, and our BLOG has several posted Q&A entries about medical insurance issues. As we are volunteers here, it would help us immensely if you would do your own research before asking us for help - most of the questions we have been asked have the answers in the aforementioned resources. We are not experts in health insurance matters, and only know what is available through these same resources, and do not warrant the information in any way. Finally, we will not be able to make suggestions on which plan might be best for you - all we can do is describe options and perhaps offer some perspective based on our own personal experiences.

Reference Documents and Important Phone Numbers
DAL Benefits Handbook (2008 ed. still valid)	2010 DAL Health Plans
2010 DAL Retiree Benefits Highlights	2010 DAL Retiree Benefit Guide
2010 Delta Dental Fact Sheet	COBRA OPTION CANCELLATION
Delta ESC: 800-MY DELTA	HCTC Customer Service: 866-628-HCTC

IMPORTANT UPDATE - DELTA HAS WITHDRAWN THE COBRA OPTION.
Q&A will be revised as soon as possible.

Questions:

1. –New / Revised– Delta has withdrawn the COBRA option for the 2010 enrollment. Does this apply to pilots who chose the original lifetime COBRA option during the bankruptcy?
2. What are the basic requirements for getting the HCTC?
3. What are the different payment methods for the HCTC?
4. Can I direct debit my premium payments if I have the HCTC?
5. –New / Revised– I am not yet 60 years old. Once I turn 60, does Delta cover 49% of the DPMP option if I want to switch over?
6. Where is the HCTC eligible VEBA that DP3 was working on?
7. –Removed– 
8. Why have Cobra premiums risen so much and DPMP remained constant?
9. When will the current DPMP be up for renegotiation?
10. Could ALPA negotiate away Retiree DPMP?
11. How long has the HCTC program been in effect?
12. What happens when I turn age 65?
13. If I am on lifetime COBRA and receive the HCTC how is my spouse handled after I reach age 65?
14. What happens to my spouse's coverage if I die while under COBRA coverage?
15. –New / Revised– Anybody in GA using HCTC? Blue Cross Blue Shield is the only HCTC approved carrier in GA. My wife and I are both in good health. She does take medication for mild osteoporosis. The quote from BCBS was $861/month - my 20%,for a $1500 per person deductible, meaning the total premium was more than $4000.00/month, $48,000.00/year. Is that in line with other quotes?
16. Can my family members receive the HCTC?
17. Is there any hope of getting the HCTC for those of us not receiving a PBGC check?
18. Shouldn't LIFETIME COBRA Benefits continue past age 65? Shouldn't LIFETIME COBRA have a different intent? LIFETIME COBRA should mean just that; I should be entitled to my current DPMP coverage for the remainder of my life.
19. –Removed– 
20. –New / Revised– What is the best option for most of us – should we look at other HCTC qualified plans, such as state plans like BCBS and spousal coverage options?
21. –Removed– 
22. If I am on the DPMP already, does Delta change my premium on the day I turn 60?
23. –New / Revised– Where can I find the individual and family deductibles, and items covered under the DFCMP?
24. How do I apply for the HCTC and how long does it take to get reimbursed?
25. –New / Revised– When and if there is a VEBA, can I enroll in them and qualify for the HCTC if anyone in my family has a pre-existing condition?
26. –Removed– 
27. –New / Revised– I've heard that some retirees do not see listings for dependents. Are there any glitches in the online enrollment process?
28. –New / Revised– I can find no mention in any of the reference material to the 49% subsidy for retirees 60-65 years old, or the 16%/35% refund for PBGC zero guys. Do you know if the premium shown on one's medical options reflects the subsidies/refunds or is that the full premium amount?

Answers:

1. Delta has withdrawn the COBRA option for the 2010 enrollment. Does this apply to pilots who chose the lifetime COBRA option during the bankruptcy?
No, this does not affect you. You should continue to receive the HCTC if you have maintained the lifetime COBRA that was offered during bankruptcy. The withdrawal of the 2010 COBRA option applies only to those pilots who were originally denied the lifetime bankruptcy COBRA.
Back to questions

2. What are the basic requirements for getting the HCTC?
There are three main pre-requisites for qualifying for the HCTC. One, you must be receiving a payment from the PBGC. Two, you must be under age 65 and NOT on Medicare or Tricare. Three, you must be enrolled in a "qualified" plan, the three most common of which are any COBRA plan, a state qualified plan, or spousal coverage. Each of these different options has requirements and restrictions of their own. (See the next question for info on HCTC payments.) Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

3. What are the different payment methods for the HCTC?
The HCTC is available in either a monthly payment plan or in an annual credit taken on your tax return. Please note that there are different requirements for each of these payments plans. Remember, you must pay your HCTC invoices on time, or the IRS will not pay your premiums to the insurance provider - which could result in loss of your health insurance and even eligibility for this COBRA plan and subsequently the loss of the HCTC. The HCTC recommends paying a month ahead of time to prevent this undesirable outcome, and we concur with that recommendation. Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

4. Can I direct debit my premium payments if I have the HCTC?
No, you must pay the HCTC directly if you sign up for the monthly plan. Currently, the HCTC does not accept electronic payments, but it is rumored that they may begin accepting them in 2010. Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

5. I am not yet 60 years old. Once I turn 60, does Delta cover 49% of the DPMP option if I want to switch over?
Not yet being age 60, you do not qualify for the 49% contribution to the premium cost for the DPMP at this time. That benefit is mandated by the 1114 Committee Stipulations signed by Delta and ratified by the bankruptcy court. If you choose the DPMP and turn 60 during the year, the subsidy will begin mid-year (see question 22.)
Back to questions

6. Where is the HCTC eligible VEBA that DP3 was working on?
The VEBA is being held up in bankruptcy court and will not be an available health insurance option for you in the 2010 open enrollment cycle. A hearing is scheduled for November 13, 2009. Please read the article posted here for more information.
Back to questions

7.–Removed– 
Back to questions

8. Why have Cobra premiums risen so much and DPMP remained constant?
Here's the answer that Mr. Kight gives in his memo: "For current Lifetime COBRA participants enrolled in the DFCMP, there will be a COBRA premium increase of 20% for 2010. As indicated in my November 8, 2007, memo to Lifetime COBRA participants, we have been gradually phasing in the increase in COBRA premiums that otherwise would have occurred two years ago. We have been taking this multi-year approach in order to avoid the hardship that would be caused by such a large increase in a single year."
Back to questions

9. When will the current DPMP be up for renegotiation?
The amendable date of the current contract was set by LOA 51 as 12/31/2009. Remember that ALPA represents only the active employees, and whatever crumbs are thrown our way are the result of their negotiations. Take that as you will.
Back to questions

10. Could ALPA negotiate away Retiree DPMP?
First, there is no such thing as "Retiree" DPMP. There is a DPMP program that retirees are eligible to purchase, and the 1114 agreement provides for basic benefits regarding this program. The biggest threat to all who need these programs is the cost. There will always be a DPMP or some program similar to it as long as Delta continues to operate, and we have legal assurances in the 1114 process that we will have access to it.
Back to questions

11. How long has the HCTC program been in effect?
The HCTC began as a ground breaking tax credit program in 2002 and in 2009 was expanded as a result of the American Recovery and Reinvestment Act (ARRA). Described by some participants as "a lifesaver," the HCTC is a federally funded tax credit that enables individuals to pay only 20% of their health insurance premiums until December 31, 2010, at which time they will pay 35% unless the ARRA is extended. Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

12. What happens when I turn age 65?
You must enroll in Medicare, Part B, and Medicare will become your primary provider. There is no other option here if you desire insurance secondary to Medicare. (At this time Medicare, Part B will cost you $96.40 a month.) If you are enrolled under COBRA DFCMP when you turn 65 you may continue to use DFCMP as your secondary provider, but remember that the COBRA, and hence HCTC eligibility, will end. If you are merely enrolled under in DPMP (no COBRA, no HCTC) Delta will switch you automatically to Out of Area Coverage. (Reference: Healthcare Benefit Handbook, page 7.) Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

13. If I am on lifetime COBRA and receive the HCTC how is my spouse handled after I reach age 65?
The Trade Adjustment Assistance Health Coverage Improvement Act of 2009 authorizes the payment of HCTC benefits for up to 24 months if the primary eligible individual dies, divorces, or enrolls in Medicare. The key thing here is that the act expires on December 31, 2010, and Congress must authorize an extension of the Act if benefits are to be paid beyond that date. We believe this means that if a qualifying family member becomes eligible in 2010, the 24 months will continue past the expiration of the Trade Adjustment Assistance Health Coverage Improvement Act due to expire at the end of 2010. There is even a chance such qualifying family members in 2009 may be included - see our BLOG item about that. Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

14. What happens to my spouse's coverage if I die while under COBRA coverage?
If a retiree is continuing lifetime COBRA at the time of his or her death, the retiree's dependents who were covered under the lifetime COBRA coverage on the day before the retiree's death may elect an additional 36 months of COBRA coverage within an election period. No COBRA rights will extend beyond 36 months following the retiree's death. (Ref: Healthcare Benefit Handbook, page 7.)
Back to questions

15. Anybody in GA using HCTC? Blue Cross Blue Shield is the only HCTC approved carrier in GA. My wife and I are both in good health. She does take medication for mild osteoporosis. The quote from BCBS was $861/month - my 20%,for a $1500 per person deductible, meaning the total premium was more than $4000.00/month, $48,000.00/year. Is that in line with other quotes?
The GA BCBS HCTC rates are extremely high as compared to other states. Some of the trustees are using state sponsored HCTC packages and are paying reasonable rates even with spouses who have pre-existing conditions. The GA rates are an indication of the relationship between the insurance commissioner and the people he regulates. Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

16. Can my family members receive the HCTC?
Yes. Qualified family members may receive the HCTC. Also, the HCTC will soon be available to your family members for a longer period of time. Beginning in January 2010, qualified family members may continue receiving the HCTC for up to 24 months (but not beyond Dec. 31, 2010) after the primary eligible individual experiences one of the following life events - enrollment in Medicare, divorce or death. Please see the HCTC FAQ here. Or call the HCTC at 1-866-628-HCTC (4282).
Back to questions

17. Is there any hope of getting the HCTC for those of us not receiving a PBGC check?
Employers were authorized by Congress in the ARRA to extend HCTC benefits specifically to those persons who are receiving a check from the PBGC. This authorization to extend HCTC will expire on December 31, 2010. Our insurance broker has approached the PBGC on this issue, and the PBGC remains adamant that they can do nothing unless the law changes. DP3 may be able to approach this issue legislatively; however, such an effort would be a very long shot.

Under the terms of the 1114 settlement, those pilot retirees who are ineligible for the HCTC due solely to not receiving a PBGC benefit are entitled to an additional refund of 16% on top of the 49% subsidy of the full premium rate of their Delta Pilot Medical Plan health insurance premiums (only for pilots between 60-65, and only until the calendar year after Final Determination Letters are out.) The calendar year after the PBGC issues their Final Determination Letters (only for pilots between age 60 - 65), the entire 65% subsidy will be automatic without having to apply for a refund.

For more details, see the footnote on pages 2 and 3 of Exhibit B of the Bankruptcy Agreement of October 4, 2006: "If a Retired Pilot age 60-64 has commenced his retirement benefit from the Delta Pilots Retirement Plan and is not Health Coverage Tax Credit (HCTC) eligible solely because he will not (or does not) receive a payment from the Pension Benefit Guaranty Corporation ( PBGC ), then after the end of the calendar year and subject to proof of HCTC ineligibility reasonably satisfactory to Delta, such Retired Pilot shall be eligible for a refund from Delta of an amount equal to 16% of the DPMP rate for that year for himself and, if his spouse is also age 60-64 and otherwise HCTC eligible (but for no PBGC payment), a similar refund for his spouse. This refund procedure will apply until the first calendar year after the PBGC has finalized all pension benefit calculations from the Delta Pilots Retirement Plan ( First Calendar Year ). For the First Calendar Year and thereafter, a Retired Pilot or spouse who has provided sufficient proof of HCTC ineligibility (for the reasons described above) to Delta for the period following the PBGC's issuance of its final pension benefit calculations, will be required to pay only 35% of the DPMP rate, instead of receiving the refund, for the remainder of the period that he or she is between the ages 60 and 64. No Retired Pilot or spouse who is under age-60 as of January 1, 2007 shall be eligible for the refund; such individuals, however, shall be eligible for the refund or 35% contribution percentage upon reaching age 60 if they meet the criteria set forth in this Note. No Retired Pilot shall be eligible for the refund or the 35% contribution percentage for himself or his spouse after he reaches age 65. No spouse is eligible for the refund or 35% contribution percentage after the spouse reaches age 65." Please remember that the current 16% rebate is in addition to the 49% Delta subsidy if you are between ages 60 - 65, so it totals a 65% discount. Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

18. Shouldn't LIFETIME COBRA Benefits continue past age 65? Shouldn't LIFETIME COBRA have a different intent? LIFETIME COBRA should mean just that; I should be entitled to my current DPMP coverage for the remainder of my life.
Your COBRA DPMP policy is indeed lifetime, but it becomes secondary to Medicare Part B when you turn 65. We will venture that all policies have this feature. Take a look at page 39 of the Benefits Handbook (on the Delta Extranet) for a good explanation of this. Consider the cost for DPMP when it becomes secondary to medicare. On the one hand your DPMP will cost much less; on the other hand Medicare Part B will cost you $96.40 per month each (if your wife is on medicare Part B, too) and IF your modified adjusted gross income is less that $170 K a year. If more than that there will be additives to the basic amount. SSA takes these premiums out of your monthly SS check.
Back to questions

19.–Removed– 
Back to questions

20. What is the best option for most of us – should we look at other HCTC qualified plans, such as state plans like BCBS and spousal coverage options?
This is a question we simply can't answer for you. There are several ways to get the HCTC. Each of these different plans will have different deductibles, copays, maximum out of pocket limits, prescription drug copays, and the like. It is up to you to compare the different options and decide which is best for you and your family. If it helps, two of your DP3 trustees are using the BCBS plans in their respective states. Another trustee is using his spouse's health insurance plan for the same reason. All three of these trustees are sticking with the other HCTC qualified plans on the basis of careful comparison of all the plan costs and benefits. Here is a link to the list of state plans qualified for the HCTC: http://www.irs.gov/individuals/content/0,,id=187058,00.html. Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

21.–Removed– 
Back to questions

22. If I am on the DPMP already, does Delta change my premium on the day I turn 60?
Yes, or more precisely, they are supposed to. Trustee experience in this area is that they may miss the first month's premium change, but will credit the overpayment in due course.
Back to questions

23. Where can I find the individual and family deductibles, and items covered under the DFCMP?
Look at the bottom of page 7 of the Retiree Benefits Highlights brochure. You then take those numbers and go to the Benefits Handbook starting on page 61 and look up the DFCMP (which has the 2008 numbers) and you can see the program – but you must remember to replace certain benefit numbers with the higher numbers (less benefit) from the Highlights brochure.

Changes to the Standard Medical Option for 2010 include an increase in the:
• Annual deductible from $600 to $650
• Out-of-pocket maximum from $3,000 to $3,500
• Primary physician office visit copay from $20 to $30
• Specialist physician office visit copay from $50 to $60
• Emergency room copay from $100 to $150

Changes to the Standard Medical Option prescription drug benefit include an increase in the:
• Tier 3 copay from $50 to $60
• Tier 4 copay from $70 to $90

Back to questions

24. How do I apply for the HCTC and how long does it take to get reimbursed?
First, make sure you are eligible as partially explained in question 2 above and on the HCTC web page. Once you're eligible in all respects, complete the application contained in the HCTC Program Kit and mail it to the agency. They will give you instructions on payments, but it's very important to understand that the HCTC, as a result of the ARRA, is running 6-8 weeks behind in processing new applications, and may not get the program set up for you in time for the first premium due before January 1, 2010. In this case, you MUST make FULL payment of the premium to the provider by the due date or you stand to lose the insurance and lose the COBRA option forever. It is possible that you may have to make the first 2 monthly payments in full before the HCTC gets the monthly payments started - make sure the insurer gets the premium payment on time until the HCTC confirms that they are making the payments. (The credit for these full payments may be reimbursed, or claimed as a tax credit on your 2010 tax return using form 8885.) Please call the HCTC customer service center for additional information at 1-866-628-HCTC (4282) or visit the HCTC web page.
Back to questions

25. When and if there is a VEBA, can I enroll in them and qualify for the HCTC if anyone in my family has a pre-existing condition?
By law, one of the requirements for an HCTC health plan is that it cannot exclude pre-existing conditions. Since the VEBA will be an HCTC eligible plan, you should not have a problem with this. Additionally, We understand that if you were to select the subsidized DPMP program (if you're over 60 but not yet 65) you cannot be denied coverage during the open enrollment period. The right to re enroll is guaranteed by the bankruptcy court 1114 agreements. Finally, on page 54 of the Benefits Handbook, it says: "The Delta medical plans cover Covered Expenses for a Pre-Existing Condition the same as for any other medical condition."
Back to questions

26.–Removed– 
Back to questions

27. I've heard that some retirees do not see listings for dependents. Are there any glitches in the online enrollment process?
Some retired pilots are not showing all of their options on their paperwork - if you think you are eligible and do not have the option, call the Delta ESC. Also sometimes you cannot de-select an option, and it appears you are signing up for more than one. It has been reported to us that simply continuing the process will present the correct information at the end of the registration process, but we recommend that you call the ESC to ensure you have completed the selections properly. Finally, some members are reporting that they do not see enrollment options for their dependents - see answer number 26 above, and call the ESC to ensure your coverage selections are actually available and properly confirmed.
Back to questions

28. I can find no mention in any of the reference material to the 49% subsidy for retirees 60-65 years old, or the 16% refund or35% rate for PBGC zero guys. Do you know if the premium shown on one's medical options reflects the subsidies/refunds or is that the full premium amount?
The subsidies should be reflected on your online open enrollment option sheet, and you must apply for the refunds via the ESC. Breaking down the subsidies and refunds for the DPMP, we think it goes like this:

Under Age 60	No subsidy or refund.
Age 60-64	If on DPMP, retiree gets a 49% subsidy from Delta (Retiree pays 51%.) If Retiree is otherwise HCTC eligible but not getting a check from the PBGC: >Before the FD letters are sent out – Delta will refund 16% of the DPMP rate for that year for retiree (and 16% for his spouse if she is also 60-64.) >After the FD letters are sent out – the age 60-64 retiree will be required to pay 35% of the DPMP premium - no more refunds.
65 or over	Pre 97 retirees and SEP '96 retirees get a refund for self and spouse of the Basic Medicare part B premium of (2009) $96.40 per month. If enrolled in either DPMP or the Alternate Plan (DALRC), Delta will pay a monthly subsidy of: $84.29 a month for Pre-97 and SEP '96 retirees or $68.49 per month for Post '97 retirees. Eligible for DPMP and, if COBRA also for DFCMP. On reaching age 65 both Delta policies switch automatically to Out of Area premium rates. No longer eligible for HCTC when Medicare eligibility commences.

Note: The 16% refund and the 35% deal after the FD letters are sent out are contingent on the retiree submitting sufficient proof of HCTC ineligibility due to no check from the PBGC. In other words, the burden is on the retiree. Delta probably has no clue whether a retiree is a "Zero" or not.
Back to questions

Additional Resources

An excellent HCTC FAQ page on the PBGC web site.

Mr. Kight's MEMO re: new COBRA optionNOTE: This program has been cancelled. See Update...

HCTC FAQ

Download the HCTC Program Kit