Medicare Supplement Choices For AT&T Retirees

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Medicare Supplement Choices For AT&T Retirees

Are you one of the many seniors offered limited Medicare Supplement choices with AON?  AON does not have to be your one stop shop.

There are other Medicare Supplement choices for AT&T retirees.  Although the cost of your Medigap insurance premium is subsidized through AT&T Health Retirement Account (HRA), the price of your Medicare Supplement insurance may be higher than normal.

If you ask AON about their pricing, they will tell you that a retiree purchasing individual Medicare insurance will pay the same premium no matter who the broker/agent is.  This is true.  However, what you may not be told is that AON is not shopping the entire Medicare Supplement insurance marketplace for you.  This means your Medigap choices are limited with AON.

Medicare Supplement insurance (also known as Medigap) plans are standardized by CMS (Centers for Medicare and Medicaid Services).  This means that Medigap Plan F with ABC insurance company is the same Medigap Plan F with XYZ insurance company.  The only difference is price.  The Medigap plans being offered by AON are the same exact Medigap plans in the independent marketplace.   AON, however, is contracted with only a few insurance carriers.  In contrast, the independent market has access to dozens of insurance companies for the same exact Medigap benefits.

Does price matter?  Depending on where you live, your age, and tobacco status determines your actual Medigap Premium. By law, AON cannot give special Medigap pricing for AT&T retirees.  As a Medicare Beneficiary, you will be offered the same Medigap premiums as any other Medicare eligible person.  Shopping the independent market will make sure you are receiving the best priced premium.  Remember, your unused HRA dollars roll over to the next year.  AT&T has not made a funding commitment beyond 2015.  So, indeed, price does matter.

Here are a few tips on getting the most out of your HRA dollars.

  1. You are required to purchase only one plan through AON in order to activate your HRA account — either a Drug or Medicare Supplement.
  2. Choose ONE plan to buy outside of AON and then shop the entire Medicare Supplement market using an independent agent to help you compare prices.
  3. Use HRA to pay for both premiums (Drug and Medigap).

Possible Scenario:

  • Buy a drug plan through AON.
  • Contact an Independent Agent to shop the Medicare Supplement market for the Medigap Plan you want (for example, Plan F).
  • Compare AON’s quotes for Plan F with Independent Market Quotes.
  • Purchase Plan F at the lowest premium available using your HRA for the premiums.

In conclusion, AON is a private health exchange vendor who has brokered a relationship with AT&T.  You may be one of many seniors offered limited Medicare Supplement plans with AON.  In reality, there are other Medicare Supplement choices for AT&T retirees.

If you want the freedom of shopping the independent market for your Medigap Plan, you have options outside the private health exchange.


By working directly with REMEDIGAP, you will have one contact throughout the entire process. No long waits to talk to someone. Whether you have many questions or just a few, we will answer them promptly. Our service is completely free of charge to you.

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