IMPORTANT CHANGES TO SUPPLEMENTAL MEDICAL

Active Employees and participating Spouses/Domestic Partners

American Airlines will be terminating the Supplemental Medical coverage for all active employees effective 1/1/2011. AA will be offering a premium holiday to active employees in November and December. All active employees and spouse/DPs from participating workgroups (Management, Agents/Reps/Planners, Support Staff, TWU-represented, FAs) of the Supplemental Medical Plan will be eligible to enroll in Supplemental Medical at the time they commence retiree medical coverage provided it is during the time the plan remains open for retirees/spouse/DPs (December 31, 2013 or when the Health Insurance Exchanges open)

Retirees and participating Spouses/Domestic Partners

American Airlines will continue the Supplemental Medical Plan as a Retiree Supplemental Medical Plan until 12/31/2013 or when the Health Insurance Exchanges open. Retiree and current Surviving Spouses will continue to pay a monthly premium of $15 per member per month rate, which is paid annually to HealthFirst, $180 annually per member; we will continue to monitor contributions to ensure we are meeting our financial obligations for coverage during the next 3 years.

All future retirees from the current workgroups will be eligible to enroll in Supplemental Medical at the time they commence retiree medical; they will have 30 days from **commencement of retiree medical** to enroll in Supplemental Medical. This applies only during the timeframe for which we will continue this plan. Employees who terminate from the Company under the 50 – 55 Rule will no longer pay for Supplemental Medical coverage, they will be eligible to enroll in coverage when the **commence retiree medical** coverage, provided it is during the timeframe for which we will continue this plan.

American Airlines will be mailing letters that will give the details and includes FAQs (Frequently Asked Questions) concerning the changes to Supplemental Medical Plan.

On Another note; Flexable Spending Accounts (FSA’s) will remain at $5000 limit for 2011. This is a correction to the presentation given at the September’s Shop Steward’s meeting.

D’Ann will present new updated information concerning October Benefits Enrollment at September’s Membership Meeting on September 27 at 7:45am, 11:45am, 3:45pm and 11:45 pm.