AT&T Healthcare Changes Likely Coming in 2025

For the past two years AT&T has cut healthcare benefits, but will the trend continue? Certain AT&T employees who have posted on thelayoff.com seem to believe that there will be changes coming in 2024. One employee posted that they received a notification that 2023 would be the last year for “T subsidized healthcare”. That same person went on to state that “everyone gets the UHC provided AT&T group advantage plan. It will stay this way for five years running. At that time the company will evaluate if they will offer any T-subsidized healthcare.”

Another employee followed up saying that the HRA (Health Reimbursement Account) is officially being taken away in 2024. This was a benefit enjoyed by retirees. According to this AT&T employee, “The only option will be the UHC AT&T Group Medicare Advantage (PPO) Plan. The annual HRA contribution will go away at the end of 2023. Details from AT&T will follow during 2023.”

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AT&T’s Summary Plan description states that eligible former employees used to receive an HRA credit of $2,700 for themselves and $1,500 for an eligible dependent. That would be a total healthcare credit of $4,200 per year. Therefore, former couples with a 20-year life expectancy, would have received an HRA credit could account of $84,000 in total.** That is no longer available.

In addition to those cuts AT&T announced that for those who retired in 2022, the company will not pay for a portion of the retiree’s monthly premium for medical or dental. However, this does not currently apply to all AT&T employees, and you should check with the benefits office for information regarding your specific situation.

If AT&T does decide to cut benefits they will not be alone. According to an article in FierceHealthcare, 49% of employers expect to change their benefit structure because the current benefits they offer are too expensive to maintain.

It should also be noted that AT&T has also cut pension benefits and life insurance benefits in the past few years. This was all part of a $10 billion cost cutting initiative proposed by CEO John Stankey in 2020.

Michael Lee

Principal, Wealth Advisor & Focus Team Lead

With over 10 years of experience as an advisor, Michael brings a laser-focused approach to holistic wealth management. His first foray into retirement planning was when his mother retired from Kaiser Permanente Walnut Creek. As a first generation American, Michael had the duty of translating for his family – and he felt, firsthand, the stress and anxiety that large financial decisions can cause for

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