Added 4/13/2012 Q: When the new medical changes are finalized, will active employees have the opportunity to elect different coverage based on new plans?
Once American receives approval on the healthcare benefits from all represented workgroups, we will open a special enrollment window.
Added 4/13/2012 Q: Will the cost of retiree medical for ‘Current Retirees’ who are not 65 years of age be affected, and if so how much?
While current retirees were not included in the changes announced February 1, their retiree medical benefits will be addressed separately in the coming months.
Added 4/13/2012 Q: Are other various life insurance plan options outside the company going to be communicated to employees in the future if retiree life insurance is terminated or if the basic life insurance amount is decreased?
American does not have relationships with other life insurance companies. Currently, there are no proposed changes to American’s current basic life insurance for active employees. An employee whose employment ends with American does have the option of Conversion of the basic term life insurance coverage elected while an active employee. Please refer to the Employee Benefit Guide section called Life Insurance Benefits.
Added 4/13/2012 Q: What is being reviewed with our life insurance plans such as the increased premium cost as you age with the minimal cash value you take away upon retirement after paying contributions for decades?
American’s basic life insurance is funded by American through a flex funding arrangement. In other words, American’s basic life insurance coverage for active employees and retirees is self-insured. American pays rates similar to employee voluntary life insurance. If an employee elects to purchase voluntary life insurance through American’s administrator, MetLife, the employee is purchasing a term life policy. Term life insurance is a policy purchased annually and is only paid in the event of a death of the participant during the annual term of the policy. The voluntary term life policy for employees and spouses/domestic partners does have the option of Conversion or Portability should the employee end employment with American. Please see the Employee Benefit Guide section called Life Insurance Benefits.
Added 4/13/2012 Q: For employees that previously separated from the company under the 50-55 age rule, and are not yet 55, what retiree medical benefit will they be eligible for when they reach 55 and retire?
Employees who separated under the 50 and over rule are not considered active employees or current retirees. These employees who may have met the eligibility for retiree medical and resigned under the 50 and over rule will be addressed separately in the Court restructuring process.
Added 3/30/2012 Q: Would cuts for Vacation, Holidays and Benefits become effective the day we exit bankruptcy or sooner if a decision is reached?
If there are any changes to Vacation, Holidays and Benefits, they would be effective on a date announced in the future, not one in the past.
Added 3/30/2012 Q: With the proposed changes to Health Benefits, has it been discussed to bring back the FSA Debit card?
No, the Flexible Spending Account debit card will not be reinstated at this time.
Added 3/30/2012 Q: Is the number of days in my 2012 vacation bank going to change during restructuring or, since I accrued the benefit prior to November 29, 2011, are they fixed?
Vacation accrued in 2012 for use in 2013 would remain unchanged as it is already accrued. Any changes would be applied to future accruals which are taken in 2013 and later.
Added 3/30/2012 Q: I read that if the restructuring plan goes through, all the retirement medical prefunding I have contributed to will be reimbursed with investment interest. How can I find out how much this is and when I will receive this money?
Management, Support Staff and ARP employees have already been refunded their retiree medical prefunding balances. For American’s union-represented employees, if the proposed changes are implemented, American will send additional information to employees.
Added 3/30/2012 Q: If I retire early, between 55-65, but go to work somewhere else, can my spouse still be on AA medical program and pay 100% of the group plan contribution?
No, your spouse is not eligible for coverage until after you have elected retiree medical coverage for yourself.
Added 3/30/2012 Q: Will the credits we earned last year for healthcare premium discounts and the credits we’re earning this year for 2013 discounts be affected by restructuring?
We are evaluating the changes to the wellness program and restructuring proposals and will explain how wellness rewards will be impacted if the active medical proposal is implemented in 2012. We will also provide information on how rewards will or will not work with the new plan designs.
Added 3/30/2012 Q: Is restricted duty accommodation for personal sick going to be considered by the AMV and work area?
Improving employees’ health and speedy recovery is a primary goal for AA and the AMV. Providing disability management support for our employees will help our employees and managers work together to determine if restricted duty is a viable solution.
Added 3/30/2012 Q: If I retire before 65 and have to pay the “full premium” to maintain my AA Medical insurance, am I eligible for the “HCTC” (Health Care Tax Credit) through the PBGC? I understand that the monthly rate would be approximately $464.
The Health Care Tax Credit through the PBGC is only available if the pension plan is terminated. American announced on March 7 that it was proposing to freeze rather than terminate the non-pilot pension plans. If the plans are frozen, the HCTC would not be available to participants in that plan.
Added 2/24/2012 Q: What happens to the accumulated sick bank time for those who have saved maximum available time?
Employee sick bank caps and accruals will remain unchanged.
Added 2/24/2012 Q: The restructuring website says an under-65 spouse of a retiree over 65 will have access to AA’s company-sponsored retiree medical option at full cost. Is this a reference to COBRA?
This is not a reference to COBRA. If an employee over the age of 65 retires and his wife is under the age of 65 and thus, not Medicare eligible, the spouse will still have access to the company-sponsored retiree medical option. The retiree’s spouse would pay 100 percent of the cost of American’s sponsored pre-65 retiree medical option.
Added 2/24/2012 Q: On the Universal Changes for Medical, under the Value and Standard plans for Spending Accounts, it indicates non-HSA compatible. Does this mean that a flexible spending or dependent care accounts will no longer be offered? Or is it simply indicating that the HSA is only available with the Core option (as it usually is)?
The “non-HSA compatible” phrase does not refer to the flexible spending or dependent care accounts. These plans are not compatible with a Health Savings Account option.
Added 2/24/2012 Q: At one point there were discussions about better aligning coverage costs with the number of family members covered. Is that still a possibility to make it more equitable so that employees with one child aren’t paying the same amount as someone with 3 children?
The proposed medical benefits for active employees have a four-tier coverage contribution system. Our actuaries have reviewed the cost of children to our healthcare plan and do not find any data that supports one child or multiple children create a cost disadvantage to our healthcare expenses, so we will continue to offer employee + child(ren) in our solution.
Added 2/24/2012 Q: Regarding the deductible, will medical be recalculated retroactively to January 1 or from the date the new medical is implemented?
If the active medical proposal is implemented in 2012, we will provide information on how current deductibles will or will not work with the new plan designs.
Added 2/24/2012 Q: When will Jetnet be updated to reflect the new retiree checklist without health insurance options?
Please keep in mind any changes to the retiree medical plan design will not be implemented until we have agreement from the three unions. If an employee chooses to retire between this time and when any changes are implemented, they will be considered a “current retiree.” And while current retirees were not included in the changes announced February 1, retiree medical benefits will be addressed separately in the Court restructuring process.
Added 2/24/2012 Q: The proposed medical changes seem to remove the financial incentive to elect the core plan. Wouldn’t the company want to encourage more people to elect the core option to promote employees taking more personal accountability for their own healthcare as well as driving down cost?
While we cannot advise employees on which medical option is best for their individual needs, we do hope employees will take an active role in helping manage the cost of healthcare. The three medical options were designed to allow the employee to determine which plan design and contributions works best for their healthcare needs – a lower deductible and higher contributions, or lower contributions with a higher deductible.
Added 2/17/2012 Q: Will all employees get the same type of Healthmatters incentive? Will they be able to lower their monthly premiums by satisfying their Healthmatters goals?
All employees will be eligible for the same Healthmatters benefits, provided they meet the criteria established by American and provided American continues offering incentives in any plan year. Changes to the Healthmatters program for 2012 will be included in any special enrollment communication for 2012.
Added 2/17/2012 Q: Can accrued sick time be used for FMLA for immediate family members (spouse, child, and parent)?
We have shared this idea with our colleagues in Human Resources and will take the suggestion into consideration as we continue to look for ways to improve productivity and reduce costs.
Added 2/17/2012 Q: Will employees have an opportunity to increase their FSA contributions at the same time medical benefit contribution increases take effect?
We are still evaluating what enrollment options will be available to employees if there is a special enrollment in 2012. This information will be communicated in our special enrollment material. Some benefits may not be available during a special enrollment due to regulations or policies.
Added 2/08/2012 Q: Will any of the three medical benefit plan options offer a flexible spending account (FSA)?
Both the Value and the Standard plan will be FSA-eligible, as long as the company continues to offer FSA options.
Added 2/08/2012 Q: Will AA reopen open enrollment so that employees have the option to drop their insurance and go onto their spouse’s plan? Will the implementation of these active medical changes be considered a life event, for changing insurance options?
Once American receives approval on the healthcare benefits from all represented workgroups, we will open a special enrollment window. American cannot speak to what your spouse’s coverage may allow for enrollment. Therefore, you should check with your spouse’s plan with regard to whether they will allow an off-cycle enrollment.
Added 2/08/2012 Q: What is meant by contractual features and non-contractual features under Value, Standard and Core medical options?
Contractual items are features American is agreeing to make part of our collective bargaining agreements for the represented workgroups. There are other plan provisions that will not be incorporated into the collective bargaining agreements and thus, will not be contractual.
Added 2/08/2012 Q: Will HMOs still be offered as they are today? Will Kaiser be one of the three medical plan options offered to employees?
We will continue to evaluate whether HMOs fit in American’s cost solution. Kaiser is an HMO, and the company evaluates HMO plans on an annual basis.
Added 2/08/2012 Q: Dental insurance is not addressed in the company’s proposed medical benefit changes. Does that mean it stays the same or has it been eliminated?
There are currently no changes proposed to dental insurance for employees.
Added 2/08/2012 Q: Can you explain what “In-Network Deductible (Single/Family) $750 pp” looks like?
The in-network deductible is the amount an employee pays per year for in-network services before the plan begins to pay the 20 percent cost share.
Added 2/08/2012 Q: Is the Value Plus option still available? Is it available to management?
The Value Plus option will no longer be part of American’s healthcare solution. American has not determined the eligibility requirements to its medical options for the Agent, Representative and Planner employees or for Management and Support Staff.
Q: When will the new plans be effective? How will employees be notified?
Changes for all unionized employees will not take place until we reach ratified labor agreements with each of the unionized workgroups.
Q: What if I am a part-time employee but I work 40 hours per week, on average?
Healthcare coverage is based on your job definition classification. We are proposing that part-time TWU-represented employees be eligible for Part-Time Employee Healthcare.
Q: Will you implement part-time benefit options for ARP employees?
The independent, non-union employee restructuring plans are still under development. As with the restructuring plans for the represented employee groups, these plans will take into account many factors, including staffing based on American’s network and airports, productivity and workflow, and customer service needs.
Q: How much do American Airlines employees contribute for active medical costs today?
Today, many AA employees already pay close to 23 percent for their healthcare benefits. However, there are a number of employee groups that pay far less than this amount.
Q: Will American continue to offer wellness incentives?
Yes, provided AA continues offering incentives in any plan year to employees for participating in the Healthmatters wellness program, all employees enrolled in one of American’s medical plans will be eligible for those incentives, provided they meet the criteria established by American.