Update on Health Care
Reimbursement Account (HCRAR)
AT&T page Back to
Update on Health Care Reimbursement Account (HCRAR)
Dear AT&T Retiree and Long Term Disability Beneficiaries
As you know, in bargaining with AT&T this year the Company was
unsuccessful in its attempt to shift a portion of retiree health care
cost to you.
CWA was successful in negotiating a separate Health Care Reimbursement
account (HCRAR) to cover the cost of health care premiums. The account
will be funded by the Company to offset the premiums owed for retiree
health for those who retired or commenced Long Term Disability (LTD)
benefits on or after March 1, 1990.
You should have received, or will receive, a new letter from the
Company that supersedes the May 20, 2002 letter and outlines the new
accounting and reimbursement process for the HCRAR accounts. This is a
result of further discussions between the Union and the Company.
Retirees and LTD beneficiaries will now have the following options:
1) Do nothing and when you receive your pension check the stub will be
used to reflect monthly the health care premium and the associated
HCRAR reimbursement. (These reimbursements are not taxable Ė see
2) Request to receive a monthly bill, make payments and seek
reimbursement through the HCRAR account.
3) Defer medical coverage if you have other coverage. A HCRAR account
is established and can be utilized for other medical expenses. You
have the ability to change this option if you have a qualifying event
take place and need to seek coverage.
Although the primary intent of the HCRAR account is to offset the
health care premium it can also be used for co-payments, deductibles,
out of pocket expenses etc. If used this way however the retiree would
be required to pay the health care premium out of pocket.
Retirees and LTD participants who donít receive a monthly pension
check will receive monthly statement that will reflect the amount of
the premium as well as the amount deducted from the HCRAR account.
All post March 1, 1990 retirees and LTD participants will receive a
quarterly statement as well reflecting the HCRAR account status.
In addition, you have the ability to switch options during the life of
the Agreement simply by contacting the Benefit Direction Enrollment
These options are a result of the Unionís continued effort in trying
to force the company to do the right thing for our retirees and CWA
will continue to fight on behalf of all retirees. While we have
reservations with the process the company has finally selected we will
continue to challenge any and all contract violations.
The contract with AT&T expires in November 2003. We fully expect
the Company to make another run at shifting health care costs to
retirees. We will, again, be looking for support from all retirees in
our efforts to beat back any such attempts at shifting health care
costs. Together we can make the difference.
Ralph V. Maly, Jr.
Vice President CWA
For the most up to date information
please visit: CWA
Communications & Technologies Web Site