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

Medicare Open Enrollment Insights for Howmet Aerospace Employees: What You Need to Know About 2024 Cost Changes!

Healthcare Provider Update: Healthcare Provider for Howmet Aerospace Howmet Aerospace employees typically access healthcare services through a variety of insurance plans facilitated by their employer. Currently, major providers for companies like Howmet may include plans from national insurers such as UnitedHealthcare, Anthem (Elevance Health), and Cigna, although specific details may vary based on location and plan offerings. Potential Healthcare Cost Increases in 2026 As we approach 2026, Howmet Aerospace employees, like many others across the nation, face significant concerns about rising healthcare costs. Health insurance premiums, particularly for Affordable Care Act (ACA) marketplace plans, are projected to surge, with some states expecting hikes exceeding 60%. This rise is attributed to higher medical costs, the expiration of enhanced federal premium subsidies, and aggressive rate increases from insurers, potentially leading to out-of-pocket premium costs that could soar by 75% for many policyholders. For Howmet employees, these changes could mean a drastic adjustment in their healthcare budgeting as they navigate an increasingly challenging insurance landscape. Click here to learn more

Medicare's Open Enrollment Period — which runs from October 15 through December 7 — is your annual opportunity to switch your current Medicare health and prescription drug plans to ones that better suit your needs. Just in time for Open Enrollment, 2024 Medicare premiums, deductibles, and other costs have been announced, and surprisingly, some of these costs are lower than they were last year.

What to consider
Start by reviewing any materials your plan has sent you. Look at the coverage offered, the costs, and the network of providers, which may be different than last year. Maybe your health has changed, or you anticipate needing medical care, or new or pricier prescription drugs. If your current plan doesn't meet your health-care needs or fit your budget, you can make changes. But if you're satisfied with what you currently have, you don't need to do anything. The coverage you have will continue.

During Open Enrollment, you can:

Switch from Original Medicare to a Medicare Advantage Plan
Switch from a Medicare Advantage Plan to Original Medicare
Change from one Medicare Advantage Plan to a different Medicare Advantage Plan
Change from a Medicare Advantage Plan that offers prescription drug coverage to a Medicare Advantage Plan that doesn't offer prescription drug coverage
Switch from a Medicare Advantage Plan that doesn't offer prescription drug coverage to a Medicare Advantage Plan that does offer prescription drug coverage
Join a Medicare prescription drug plan (Part D)
Switch from one Part D plan to another Part D plan
Drop your Part D coverage altogether

Any changes made during Open Enrollment are effective as of January 1, 2024.

Medicare Part B (Medical Insurance) Costs for 2024

Any changes made during Open Enrollment are effective as of January 1, 2024.

Most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $174.70 in 2024. This premium has increased from 2023 due to rising healthcare costs and adjustments in Part B items and services ( Grant Thornton ) ( Kiplinger.com ).

People with higher incomes may pay more than the standard premium. If your modified adjusted gross income (MAGI) as reported on your federal income tax return from two years ago (2022) is above a certain amount, you'll pay the standard premium amount and an Income-Related Monthly Adjustment Amount (IRMAA), which is an extra charge added to your premium, as shown in the following table ( Grant Thornton ) ( Kiplinger.com ).

You filed an individual income tax return with MAGI that was:	You filed a joint income tax return with MAGI that was:	You filed an income tax return as married filing separately with MAGI that was:	Total monthly premium in 2024 is:	*Total monthly premium in 2024 immunosuppressive drug coverage only is:
$103,000 or less	$206,000 or less	N/A	$174.70	$103.00
Above $103,000 up to $129,000	Above $206,000 up to $258,000	N/A	$244.60	$171.70
Above $129,000 up to $161,000	Above $258,000 up to $322,000	N/A	$349.40	$274.70
Above $161,000 up to $193,000	Above $193,000 and less than $500,000	N/A	$454.20	$377.70
Above $193,000 and less than $500,000	Above $386,000 and less than $750,000	Above $103,000 and less than $397,000	$559.00	$480.70
$500,000 and above	$750,000 and above	$397,000 and above	$594.00	$515.10

Additional Information

People with higher incomes may also pay a higher premium for a Medicare Part D prescription drug plan, as an IRMAA will be added to the Part D basic premium based on the same income limits in the table above. The average basic monthly premium for 2024 is projected to be about $55.50 ( Centers for Medicare & Medicaid Services ) ( Kiplinger.com ) ( Medicare ).

People with Medicare Part B must also satisfy an annual deductible before Original Medicare starts to pay. For 2024, this deductible is $240, up from $226 in 2023 ( Centers for Medicare & Medicaid Services ) ( Kiplinger.com ).

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*This premium applies to a new benefit that extends coverage for immunosuppressive drugs for people who qualify for Medicare coverage due to end-stage renal disease. Prior to 2024, Medicare coverage, including immunosuppressive drug coverage, ended 36 months after a successful kidney transplant. Beginning January 1, 2024, Medicare will offer a new benefit that will help continue to pay for immunosuppressive drugs beyond 36 months for people who don't have other health coverage. It does not cover other items or services. Rates shown apply to people who file individual or joint tax returns. Premiums for beneficiaries filing as married filing separately are different ( Centers for Medicare & Medicaid Services ) ( Medicare ).

Medicare Part A (Hospital Insurance) Costs for 2024

Part A deductible for inpatient hospitalization: $1,632 per benefit period (up from $1,600 in 2023).
Part A premium for those who need to buy coverage: Up to $514 per month (up from $506 in 2023) — most people don't pay a premium for Medicare Part A.
Part A coinsurance: $408 per day for days 61 through 90, and $816 per 'lifetime reserve day' after day 90, up to a 60-day lifetime maximum (up from $400 and $800 in 2023).

Part A skilled nursing facility coinsurance: $204 for days 21 through 100 for each benefit period (up from $200 in 2023) ( Centers for Medicare & Medicaid Services ) ( Kiplinger.com ).

How can Howmet Corporation employees ensure that they are maximizing their pension benefits under the Howmet Salaried Employees Pension Plan? Are there specific contributions or actions that could enhance their benefits over the years of their employment with Howmet Corporation?

Maximizing Pension Benefits: To maximize their pension benefits, Howmet Corporation employees should focus on accumulating years of service and ensuring they meet the eligibility criteria for the highest percentage of compensation credits under the pension plan. Employees should review their benefit statements regularly, especially considering how age and years of service affect their pension accrual. Consulting financial advisors or using Howmet's retirement planning tools can also aid in making strategic decisions about retirement timing and additional personal savings to complement their pension(Howmet Corporation_July…).

In what situations might employees at Howmet Corporation find themselves ineligible for pension plan benefits? What steps should they take, if they suspect they fall into such categories, to clarify their eligibility status?

Ineligibility for Pension Benefits: Employees at Howmet Corporation might be ineligible for pension benefits if they are not classified as salaried employees hired before January 1, 2002, or if they leave the company before accruing sufficient vesting service (three years or more). If employees believe they fall into a category of ineligibility, they should contact the plan administrator or consult HR to clarify their status, especially regarding vesting service(Howmet Corporation_July…).

Given the complexities of the Howmet Corporation Pension Plan, what resources are available for employees to understand their pension calculation, and how can they access such resources through Howmet Corporation?

Understanding Pension Calculation: Employees can access resources like the Your Benefits Resources (YBR) platform or call 1-888-ALCOA123 for assistance in calculating their pension benefits. These tools offer detailed projections and estimates based on individual account balances, years of service, and compensation, allowing employees to plan for retirement effectively(Howmet Corporation_July…).

With the elder workforce approaching retirement, how does the Howmet Corporation Pension Plan accommodate early retirees, and what factors should employees consider when deciding the optimal time to retire?

Early Retirement Considerations: The Howmet Corporation Pension Plan allows early retirement starting at age 55, with a reduced benefit. Employees should weigh the impact of reduced payments against their financial needs and Social Security options. Additionally, delaying retirement can increase benefits significantly. Employees should use the available calculators and consult financial advisors to determine the optimal retirement age(Howmet Corporation_July…).

What are the specific implications of the Internal Revenue Service (IRS) limitations for Howmet Corporation employeesâ€™ pension benefits, and how might these changes affect future retirement planning?

IRS Limitations and Future Planning: IRS limitations affect pension benefits by capping the maximum benefit amount that can be received, which for defined benefit plans is subject to annual adjustments. Employees nearing high compensation levels should consider how these caps might limit their pension payouts and integrate personal savings strategies, such as 401(k)s or IRAs, into their overall retirement plan(Howmet Corporation_July…).

How does the Howmet Corporation Pension Plan protect employees' rights under ERISA, and what recourse exists for employees who believe their rights have been violated during the pension application process?

ERISA Protections: The Howmet Corporation Pension Plan is governed by the Employee Retirement Income Security Act (ERISA), ensuring that employees' rights are protected. If employees believe their rights have been violated during the pension application process, they can file a claim with the Benefits Management Committee and, if necessary, pursue an appeal or legal recourse under ERISA(Howmet Corporation_July…).

For Howmet Corporation employees planning their estates, how essential is it to name beneficiaries in the pension plan, and what process should they follow to ensure that their beneficiaries are correctly registered?

Naming Beneficiaries: It is essential for Howmet Corporation employees to name beneficiaries for their pension plan, especially to ensure that survivor benefits are properly allocated. Employees can update beneficiary information through the YBR platform or by submitting the appropriate forms to HR. Spousal consent is required if designating a non-spouse beneficiary(Howmet Corporation_July…).

Howmet Corporation employees often have questions regarding survivor benefits. What provisions does the Howmet Pension Plan have in place for surviving spouses, and how do these benefits differ based on the employee's marital status at retirement?

Survivor Benefits: The Howmet Pension Plan offers survivor benefits, which provide ongoing payments to a spouse or designated beneficiary. For married employees, the default option is a joint and survivor annuity, which ensures a percentage of benefits continues for the surviving spouse. Single employees can designate other beneficiaries, but should review their options carefully to ensure proper coverage(Howmet Corporation_July…).

What are the essential milestones employees of Howmet Corporation should be aware of regarding vesting service under the pension plan, and how does this vesting impact their eventual payout?

Vesting Milestones: Employees become vested in the Howmet Pension Plan after completing three years of service or reaching age 65. Once vested, employees have a right to receive pension benefits even if they leave the company before retirement age. Knowing these milestones helps ensure employees fully benefit from their time at Howmet(Howmet Corporation_July…).

If Howmet Corporation employees have further questions regarding their benefits as detailed in the document, what steps should they take to contact the plan administrator, and what information will they need to provide for personalized assistance?

Contacting the Plan Administrator: Employees with further questions about their pension benefits should contact the plan administrator through the YBR website or by calling 1-888-ALCOA123. Employees will need their Social Security number, date of birth, and user ID to access personalized assistance(Howmet Corporation_July…).

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

Pension Plan Information: Name of Pension Plan: Howmet Aerospace Pension Plan Years of Service and Age Qualification: Employees typically need to have a minimum of 5 years of service to qualify for the pension plan. The plan is available to employees who are 21 years old or older. Pension Formula: The pension benefit is calculated based on a formula that considers years of service and average salary during the highest-paid years. Specifics can vary, so it’s best to refer to the plan document for precise details. 401k Plan Information: Name of 401k Plan: Howmet Aerospace 401(k) Plan Qualifications: Employees are eligible to participate in the 401(k) plan immediately upon hire. The plan includes company matching contributions based on employee contributions. Details of the Plan: The Howmet Aerospace 401(k) Plan offers a range of investment options, and employees can contribute up to the maximum limit set by the IRS.

Restructuring and Layoffs: In early 2024, Howmet Aerospace announced a restructuring plan aimed at improving operational efficiency. This plan included layoffs impacting approximately 2% of their workforce. The restructuring is part of their broader strategy to streamline operations and enhance profitability in a challenging economic environment. The importance of addressing this news lies in its impact on employees and the company's operational effectiveness amid current economic uncertainties.

Howmet Aerospace provides stock options and RSUs to eligible employees as part of their compensation package. For 2022, 2023, and 2024, the company offers these benefits to key employees, executives, and directors. Specific plans and eligibility criteria are outlined in their annual reports and proxy statements.

Healthcare Terms/Acronyms: HSA (Health Savings Account): Offers tax-advantaged savings for healthcare expenses. FSA (Flexible Spending Account): Allows employees to set aside pre-tax income for eligible expenses. HDHP (High Deductible Health Plan): A health plan with lower premiums and higher deductibles. Health Benefits Overview: Howmet Aerospace provides comprehensive health insurance options including medical, dental, and vision coverage. They offer both HSA and FSA options, alongside a range of wellness programs. Additional benefits include employee assistance programs and telemedicine services.