New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Arconic Employees: Securing Your Future When Medicare Falls Short

Healthcare Provider Update: Healthcare Provider for Arconic Arconic, a leading provider of aluminum and aerospace products, collaborates with various insurance companies to offer healthcare benefits to its employees. The primary healthcare providers that partner with Arconic vary by location and include well-known insurers like UnitedHealthcare, Aetna, and Blue Cross Blue Shield, among others. Healthcare Cost Increases in 2026 In 2026, healthcare costs are expected to rise significantly, impacting employers and employees alike, including those at Arconic. The projected average increase in health benefit costs could reach nearly 8.5%, attributed to a perfect storm of higher medical expenses and the potential expiration of enhanced federal premium subsidies from the Affordable Care Act (ACA). Many employers are responding by considering changes to plan designs that shift more costs to employees. This could lead to out-of-pocket premium increases that may exceed 75% for a large portion of the workforce, making it critical for companies like Arconic to strategize their healthcare offerings effectively to mitigate financial impacts on their employees. Click here to learn more

The need for long-term care, especially in nursing homes, becomes increasingly pressing for many as the population ages. For Arconic employees, the increasing expenses of this type of care plus the fact that Medicare does not cover long-term nursing home stays make financial planning even more complicated.

The Increasing Need for Extended-Term Care

Studies reveal a notable increase in the need for long-term care. A Department of Health and Human Services research from 2022 found that 56% of Americans who reach 65 today will later have problems and require long-term care. As per the National Academy of Social Insurance, the number of elderly individuals in need of this type of care is expected to rise by over 50% by 2050, from 6.3 million in 2015. This trend highlights the importance for Arconic employees to plan ahead.

The Cost of Care in Nursing Homes

One of the most intimidating aspects of nursing home care is the financial factor. According to data from Genworth's 2022 Cost of Care Survey, a semi-private room in a nursing home typically costs $107,146 per year, while a private room costs roughly $120,304 annually. In sharp contrast, the average monthly Social Security retirement payment is $1,907 as of January 2024, which comes to just $22,884 annually—a far cry from enough money to meet these expenses.

Choices In Case Medicare Is Insufficient

Medicare offers limited reimbursement for stays in skilled nursing facilities under certain conditions, but it does not cover long-term stays in nursing homes. For example, Medicare Part A pays for the whole first 20 days of care in a skilled nursing facility after a qualifying hospital stay of at least three days in a row, as long as care starts within 30 days of hospital release. Beyond this, the patient is responsible for a $204 daily coinsurance from the 21st to the 100th day, with up to 100 days of care covered per benefit period.

Getting Around Medicaid Coverage

Medicaid becomes a vital resource for many, including Arconic employees, as, provided certain strict eligibility requirements are satisfied, it can pay for nursing facility expenses in full. These requirements cover both financial thresholds and level-of-care requirements. For example, in order to satisfy the level-of-care requirements, a person may have to exhibit substantial cognitive, physical, or behavioral demands. States establish financial thresholds for income and assets, which if surpassed, may still permit eligibility through a 'Medicaid spend down' procedure. This entails using the extra cash for medical bills up until the point at which eligibility is satisfied.

Long-Term Care Insurance's Function

An additional option for controlling the expense of nursing home care is long-term care insurance. The coverage provided by policies varies greatly; some may cover both skilled and non-skilled care. Because life expectancies fluctuate by gender, the cost of these plans typically rises with the policyholder's age. For example, at age 55, a guy may pay, on average, $900 a year for an insurance with $165,000 of coverage; at age 60, that amount could increase to $1,200. Because women often live longer, they tend to pay more.

As an Alternative, Home Care

Arconic employees who would rather stay at home may benefit from Medicare Parts A and B, which may fund qualified home health services for people who are homebound and in need of part-time skilled care. This covers treatments including occupational therapy, physical therapy, and skilled nursing care. But it's crucial to remember that Medicare does not pay for custodial services like washing and dressing, meal delivery, or 24-hour home care unless they are combined with professional nursing care.

Non-Profit Choices

Investigating non-profit facilities can be a good idea as well. These facilities are worth considering for Arconic employees who are struggling financially because they frequently offer financial aid programs along with rehabilitation services.

In summary

Considering insurance and eligibility for government help, assessing the range of care alternatives and related expenses, and taking individual preferences for the type of care facility are all part of planning for long-term care. Strategic financial planning becomes essential when expenses rise and government assistance becomes more limited. Being aware and ready is more crucial than ever as the demand for long-term care rises.

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It is critical for Arconic employees who are getting close to retirement to comprehend the possible tax advantages of long-term care insurance. Subject to certain limits, premiums paid on qualified long-term care insurance policies may be claimed as deductible medical costs. More specifically, an individual's age determines how much of the premium is deductible. In 2023, for example, people who are between the ages of 61 and 70 can deduct up to $4,510 of these costs. For people planning for future care needs, this tax factor may increase the attraction and financial viability of acquiring long-term care insurance.

Having to figure out how to pay for nursing home care without Medicare's assistance is like trying to plan a long trip in a car that breaks down. In the same way that a road tripper would arrange for a dependable car and possibly even roadside help in case of emergency, Arconic employees who are getting close to retirement should also make long-term care plans. Purchasing long-term care insurance acts as a safety net to guarantee the continuation of care in spite of high prices and probable obstacles, much like having that roadside help. The next step is to investigate Medicaid eligibility and other financial solutions. This will act as a map to help you navigate the less-traveled routes and arrive at your goal safely and debt-free.

What retirement benefits and options are available to employees of Arconic Corporation under the Arconic Corp. Pension Plan A, and how do these benefits change based on factors such as age, service length, and retirement category? Employees of Arconic Corporation should understand their eligibility requirements for normal retirement, early retirement, and disability benefits as outlined in the company's pension plan documentation.

The Arconic Corp. Pension Plan A provides retirement benefits based on a formula that considers average earnings and service length, with normal retirement eligibility at age 65 and at least five years of service. Early retirement is available at age 55 with 10 years of service, with benefits reduced based on actuarial assumptions. Disability benefits are available after 10 years of service, and preretirement death benefits offer 50% of accrued benefits to surviving spouses(Arconic Corporation_ Ja…).

How does the frozen state of benefits and service accruals impact current and future retirees at Arconic Corporation? Employees should evaluate how the freeze, effective April 1, 2018, affects their retirement planning and what measures they can take based on their individual circumstances to optimize their retirement benefits.

The frozen state of benefits and service accruals, effective April 1, 2018, means no new service credits or compensation increases are factored into pension calculations for current employees. This freeze affects retirement planning as employees must now rely on frozen benefits and other savings plans to meet retirement needs. It’s important for employees to reassess their financial goals and consider additional investments to optimize retirement benefits(Arconic Corporation_ Ja…).

In what ways can Arconic Corporation employees ensure they meet the requirements for spousal benefits outlined in the pension plan, especially regarding preretirement and postretirement scenarios? Understanding the specifics of eligibility and benefits, such as the surviving spouse benefit calculations, is crucial for employees planning for retirement.

To ensure eligibility for spousal benefits, employees need to meet certain requirements. Preretirement surviving spouse benefits require at least five years of service, and postretirement spousal benefits reduce the participant’s monthly benefit by 5%, with 50% of the reduced amount paid to the spouse if the participant dies first. Employees should understand these provisions to plan for their family’s financial security in retirement(Arconic Corporation_ Ja…).

What are the implications of the actuarial assumptions used by Arconic Corporation in valuing its pension obligations, and how do these assumptions affect the funding of the retirement plan? Arconic Corporation employees should examine how changes in interest rates and mortality tables influence the company's ability to meet its pension obligations.

Actuarial assumptions used in Arconic Corp.’s pension valuations, such as interest rates and mortality tables, directly impact the funding of retirement plans. Changes in these assumptions can affect the pension plan’s obligations and the amount of required contributions, making it important for employees to understand how these factors influence the stability and sufficiency of their retirement benefits(Arconic Corporation_ Ja…).

Can you explain the process by which Arconic Corporation employees can appeal decisions related to their pension benefits, and what support does the company provide during this process? Understanding the proper channels for appeals and the types of documentation required can be vital for employees facing issues with their pension benefits.

Employees can appeal pension benefit decisions through Arconic Corporation’s formal process, which includes submitting an appeal with supporting documentation. The company provides guidelines on what documentation is required, and employees should follow these closely to ensure their case is reviewed thoroughly. The support provided can include detailed responses to clarify benefit calculations and decisions(Arconic Corporation_ Ja…).

What resources are available to Arconic Corporation employees to help them make informed decisions about their retirement benefits, and how can they access these resources efficiently? Employees should know where to find comprehensive materials and support services concerning their retirement plans.

Arconic Corporation offers various resources to assist employees in making informed decisions about their retirement benefits. Employees can access comprehensive plan documents, financial planning tools, and counseling services through the company’s HR department and retirement plan administrators to ensure they fully understand their options(Arconic Corporation_ Ja…).

How does the Arconic Corporation define "average earnings" for calculating retirement benefits, and what methodologies are in place to ensure accuracy in these calculations? Understanding the basis for average earnings will allow employees to better project their pension benefits and prepare for retirement.

Average earnings, used in calculating retirement benefits, are defined as the average of the five highest consecutive calendar years of compensation within the last ten years for most participants. For certain participants, different rules apply based on service and plan conditions. Employees can review their earnings history to ensure accurate calculations and projections for retirement planning(Arconic Corporation_ Ja…).

What criteria does Arconic Corporation use to determine eligibility for deferred vested benefits, and how can employees maximize their advantages in this area? Employees need to be aware of the vesting schedule and how to plan for potential career transitions while maintaining their benefits.

Eligibility for deferred vested benefits in Arconic Corporation’s plan requires five years of service, and benefits can commence as early as age 55, with reductions based on actuarial calculations. Employees should plan career transitions carefully to maximize their vested benefits, especially when considering leaving the company before retirement(Arconic Corporation_ Ja…).

How can Arconic Corporation employees prepare for the potential tax implications of their pension benefits upon retirement, especially in light of IRS regulations for 2024? Being informed about tax strategies related to retirement income can significantly enhance retirees' financial wellbeing.

Employees preparing for retirement should understand the tax implications of pension benefits, particularly in light of IRS regulations for 2024. Strategies such as tax deferral and proper timing of distributions can help minimize the tax burden on retirement income, significantly enhancing financial outcomes(Arconic Corporation_ Ja…).

What contact methods does Arconic Corporation provide for employees wishing to learn more about their pension plan details, and how can employees best utilize these methods to get their queries resolved? Understanding the effective ways to communicate with the company for assistance is key for employees navigating their retirement benefits.

Arconic Corporation provides multiple contact methods for pension-related inquiries, including direct access to HR representatives and pension plan administrators. Employees are encouraged to utilize these resources effectively by preparing questions in advance and keeping detailed records of their communications for follow-up and clarity(Arconic Corporation_ Ja…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Arconic has announced a major restructuring plan that includes significant layoffs across its North American facilities. The restructuring is aimed at streamlining operations and reducing costs amid ongoing economic uncertainties. Additionally, Arconic is revising its pension and 401(k) benefits in response to shifting market conditions and regulatory changes.