TVA Survey Narrative
To: TVA Retirees Chapter Members
From: Dan Pitts
Subject: Important Update: NRLN’s Ongoing Efforts to Address Injustice to TVA Retirees
Dear TVA Retirees,
I wanted to take a moment to update you on the important ongoing work the National Retiree Legislative Network (NRLN) is doing to address the injustices faced by TVA retirees regarding the termination of our company-sponsored Medicare supplemental coverage.
As detailed in NRLN President Bill Kadereit’s November 22 update, the NRLN is continuing its efforts to rectify the issues that began in January 2017 when TVA unilaterally ended retirees’ company-sponsored Medicare coverage and redirected us to enroll in new plans through a private Medicare exchange (PME) known as OneExchange (now Via Benefits). Around 14,000 TVA retirees ultimately purchased their new plans through Via Benefits in 2017.
We first began receiving complaints from retirees in August 2017 about the treatment they received during the transition. Many retirees felt pressured into making quick decisions and were told that they “must” enroll through Via Benefits to avoid a “lapse” in coverage, which could last for a year. Others reported that the rates for Via Benefits’ Medigap plans were much higher than those available in the open market.
Medicare law includes Guaranteed Issue Rights (GIR), which protect retirees when an employer ends a Medigap plan. Unfortunately, we found that TVA’s communications with retirees were often misleading, and in some cases, incorrect. Moreover, the Medigap rates offered through Via Benefits were often significantly higher than those available elsewhere.
In addition, as we’ve investigated further, we’ve found similar complaints from retirees across the country whose employers also ended their Medigap plans. Many of these retirees were not provided proper notice of their GIRs, which is required by law. If retirees did not receive adequate notice, they may be eligible for a Special Enrollment Period (SEP), which would allow them to purchase new Medigap plans without restrictions due to pre-existing conditions.
Bill Kadereit recently shared with me a near-final draft of a white paper that will be used in Washington, D.C. in the coming months to advocate for TVA retirees who were affected by these violations. (Please find the Executive Summary of the white paper attached.) The NRLN intends to push for restitution for the affected 14,000 TVA retirees, seeking compensation for the difference between the premiums they paid and the lower premiums they could have paid had their rights been properly honored.
The white paper also documents similar violations involving AT&T, Avaya, and IBM retirees, whose employers also failed to provide proper GIR notifications, violating federal law and National Association of Insurance Commissioners (NAIC) guidelines.
As we move forward, NRLN’s Executive Director will be meeting with key Congressional staff and officials from the Centers for Medicare and Medicaid Services (CMS) after the 119th Congress opens on January 3. The goal is to present the white paper and urge action to remedy these violations. In addition, letters will be sent to federal officials responsible for enforcing these laws.
Please be aware that these efforts will take time. I will continue to work closely with Bill and keep you updated on our progress.
Thank you for your continued support as we work together to seek justice for TVA retirees.
Sincerely,
Daniel M. Pitts
865-242-4139
