Tennessee Valley Authority (TVA), a federal agency, terminated its over-65 retirees' health plan in 2017 and directed about 14,400 retirees to a new TVA-sponsored retiree health plan administered by Via Benefits (formerly known as OneExchange).

From its inception, TVA retirees reported problems concerning the new over-65 retirees’ health plan. Retirees cited grossly inflated rates, coercion, inaccurate information, and misleading information about their options to purchase new plans. 

In violation of Medicare law, TVA retirees were improperly instructed that they ‘must” enroll through Via Benefits by December 31, 2016 or face a lapse in coverage that could last a year.  TVA has never notified retirees that this information was false and a violation of Medicare laws.  Around 14,400 retirees enrolled through Via Benefits during this time, and many are now stuck in Via Benefits’ high-priced plans with no way out unless we help them.

Of the 14,400 who enrolled, around 7,000 were receiving a 'healthcare credit" from TVA which was used to offset the cost of their Medicare plans.  To continue to receive that credit, TVA required those retirees to enroll in Via Benefits' plans, many of which had very high rates.  The remaining 7,400 retirees who enrolled were misled with promises of "competitive rates" and threats that they "must" enroll through Via Benefits or face a lapse in coverage. 

Some of these retirees may be paying an extra $1,000 or more per year  for Via Benefits’ plans - which include no extra benefits over other plans with identical benefits – a total waste of money. Hopefully, this petition will help shine a light on the abuse of these trusting seniors and the resulting inflated rates they are paying for Via Benefits’ plans. 

TVA Did Not Notify/Explain Retirees’ Rights as Required by Medicare Law.  During the transition to Via Benefits, TVA retirees were never informed, as required by law, that Medicare regulations guaranteed them the right to purchase plans through any agent or broker who offered plans in their area.  Under the law, no insurers could refuse to issue TVA retirees a plan or charge more because of pre-existing health conditions.  Often, these local agent/brokers offered plans at much lower rates than the plans available through Via Benefits – and yes, the plans had identical benefits.

Instead of complying with the law, TVA improperly instructed retirees that they “must” transition to Via Benefits’ plans and that failure to do so by December 31, 2016 would result in a “lapse” of coverage which could last for a year.  In addition, retirees were not notified that Medicare law allowed them 63 days after termination of their former TVA plan to purchase plans from any agent or broker – that law allowed them until March 3, 2017 to enroll without penalty.

Retirees Were Falsely Informed That Via Benefits’ Plan Rates Were “Competitive” or “Lowest Allowed” and that Medicare Had Approved the Rates.  Via Benefits told TVA and retirees that their plans were reviewed and approved by Medicare and their rates were competitive or the “lowest allowed” by Medicare.  Medicare does not review/approve plans or rates and it is a violation of Medicare law to tell potential enrollees that Medicare approved a plan or its rates.

 As a result of this misleading/ false information and failure to provide retirees explanations of their rights, thousands of trusting TVA retirees needlessly purchased their new plans through Via Benefits, many at very high rates - some may have paid rates up to 87% higher than plans with identical benefits from a local agent or broker.  As a result, some TVA retirees may end up paying an extra $20,000 ($40,000 for a couple) for plans purchased through Via Benefits, for plans that have identical benefits to the less expensive plans available for local agents/brokers.

After 2017, TVA Began Complying with Medicare Laws – Too Late For Those Retirees Who Enrolled for the 2017 plan year.   According to anonymous sources, TVA’s Office of General Counsel advised TVA leadership that information provided retirees during the 2017 transition to Via Benefits appeared to contain several instances of misleading information and that TVA should refrain from advertising to its retirees that Via Benefits’ rates were competitive. 

TVA now informs its retirees who are newly eligible for Medicare that they are free to enroll in Medicare plans from local agents or brokers and are not required to enroll in Via Benefits’ plans.  In addition, TVA informs retirees they have 63 days after their former plan ends to enroll in a new plan.  Apparently, TVA leadership thought it was unwise to continue with the position that "no laws were violated "and that Via Benefits’ rates were "competitive".

It is a positive sign that TVA is now complying with Medicare law, but that does not help those retirees who were pressured in 2017 to buy Via Benefits’ plans. Thousands of those retirees are stuck in the over-priced plans they bought then, with no existing way out – some may have already needlessly paid an extra $6,000 ($12,000 for a couple) for those plans over the past 5 years. 

How Can You Help?  Sign the petition!  The TVA Board is TVA's regulator.  One of the primary responsibilities of the TVA Board is to ensure compliance with laws and regulations.  Moreover, the TVA Board must establish procedures to ensure that TVA adheres to standards of ethics in conduct of its business and how it treats employees and retirees. 

We will continue to make sure the TVA Board and the Health and Human Services Inspector General are fully briefed on this issue.