Document:

ex10h.htm

    
      Exhibit 10-h
 

    

    
      

    

    
      

    

    
      

    

    
      

    

    
      
 

    

    
      

    

    
      

    

    
      

    

    
      

    

    
      

    

    
      AT&T HEALTH PLAN

    

    
      

    

    
      

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Effective:  January 1, 1987

    
                 Revisions
Effective:  January 1, 2008

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      AT&T HEALTH PLAN

    

    
      TABLE OF
CONTENTS

    

    
      

    

    
      

    

    
      
        
          	
                  ARTICLE 1

                	
                  PURPOSE

                	
                  1

                
	
                  ARTICLE 2

                	
                  DEFINITIONS

                	
                  1

                
	
                  ARTICLE 3

                	
                  ELIGIBILITY

                	
                  3

                
	
                  ARTICLE 4

                	
                  BENEFITS

                	
                  3

                
	
                  ARTICLE 5

                	
                  TERMINATION OF
      PARTICIPATION

                	
                  4

                
	
                  ARTICLE 6

                	
                  DISABILITY

                	
                  6

                
	
                  ARTICLE 7

                	
                  COSTS

                	
                  7

                
	
                  ARTICLE 8

                	
                  COVENANT NOT TO
      COMPETE

                	
                  8

                
	
                  ARTICLE 9

                	
                  MISCELLANEOUS

                	
                  9

                
	
                  ARTICLE 10

                	
                  COBRA

                	
                  11

                
	
                  ARTICLE 11

                	
                  PRIVACY OF MEDICAL
      INFORMATION

                	
                  14

                

        

    

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      AT&T HEALTH PLAN

    

    
      

    

    
      

    

    ARTICLE 1   PURPOSE

    
      The AT&T Health Plan ("Plan") provides Eligible Employees,
certain Retired Eligible Employees, and each of their Dependents with
supplemental medical, dental, and vision
benefits.  

    

    
      

    

    ARTICLE 2   DEFINITIONS

    
      For purposes of this Plan, the following
words and phrases shall have the meanings indicated, unless the context clearly
indicates otherwise:

    

    
       

      2.1  Basic
Plan(s).
“Basic Plan(s)” shall mean
AT&T’s group managed care medical (known as
the AT&T Medical Plan), dental (non-DHMO option), and vision care plans (including the AT&T Retiree Vision
Care Program).   For a Participant who
Retired on or before August
31, 1992, Basic Plans shall
mean the AT&T Medical and Group Life Insurance Plan–CustomCare
(“CustomCare”) and dental (non-DHMO option) plans.

    

    

    2.2  CEO.  "CEO" shall mean the Chief
Executive Officer of AT&T Inc.

    

    2.3  COBRA.  “COBRA” shall mean the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

    

    2.4  Committee.  "Committee" shall mean the
Human Resources Committee of the Board of Directors of AT&T Inc.

     

    2.5  Dependent(s). “Dependent(s)” shall mean those individuals who would
qualify as an Eligible Employee’s dependent(s) under the terms of the major medical Basic Plan in which the
Eligible Employee participates, or, if applicable, Substitute Basic
Coverage.

    

    2.6  Disability.  "Disability" shall mean
qualification for long term disability benefits under Section 3.1 of the Officer Disability
Plan.

     

    2.7  Eligible
Employee.  "Eligible Employee" shall
mean an Officer.  Notwithstanding the
foregoing, the CEO may, from time to time, exclude any Officer or group of Officers from being an “Eligible Employee” under
this Plan. Employees of a
company acquired by AT&T shall not be considered an Eligible Employee unless
designated as such by the CEO.

    

    2.8  Employer. "Employer" shall mean AT&T Inc. or any of its
Subsidiaries.

    

    2.9  Officer.  "Officer" shall mean an
individual who is designated as an officer level Employee for compensation purposes on
the records of
AT&T.

     

    
      
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    2.10  Participant. “Participant” shall mean an Eligible
Employee or Retired Eligible Employee who has been designated to participate in
the Plan and his/her Dependent(s).

    

    2.11  Plan
Year.
 ”Plan Year” shall mean the calendar
year.

    

    2.12  Qualified
Dependent.  “Qualified Dependent”
shall mean a Dependent who loses
coverage under a COBRA Eligible Program due to a Qualifying Event.

     

    2.13  Qualifying
Event. “Qualifying Event” shall mean any of the following events
if, but for COBRA continuation coverage, they would result in a Participant’s
loss of coverage under this Plan:

    (1)    death of a covered
Employee;

    (2)    termination (other
than by reason of such Employee's gross misconduct) of an Employee's
employment;

    (3)    reduction in hours of
an Employee;

    (4)    divorce or legal
separation of an Employee or dissolution of an Employee's registered domestic
partnership;

    (5)    an Employee's
entitlement to Medicare benefits; or

    (6)    a Dependent child
ceasing to qualify as a Dependent under a Program.

     

    2.14  Retire or
Retirement.  “Retire” or "Retirement" shall mean the
termination of an Eligible Employee's employment with AT&T or any of its
Subsidiaries, for reasons other than death, on or after the earlier of the
following dates:  (1) the date such Eligible Employee has attained age
55, and, for an Eligible Employee on or after January 1, 2002, has five (5)
years of service, or (2) the date the Eligible Employee has attained one of the
following combinations of age and service at termination of employment on or
after April 1, 1997: 

    
       

      
      

       

      
        	 Net
      Credited Service 	 Age
	 25 years or
      more                        	 50 or
      older
	 30 years or
      more    	 Any
    age

      

       

       

    

     

    

    2.15  SEVP-HR.    “SEVP-HR” shall mean AT&T’s highest
ranking Officer, specifically responsible for human resources
matters.

     

    2.16  Subsidiary.  "Subsidiary" shall mean any
corporation, partnership, venture or other entity in which AT&T holds, directly or indirectly, a 50% or
greater ownership interest.  The Committee may, at its sole
discretion, designate any other corporation, partnership, venture or other
entity a Subsidiary for the purpose of participating in this
Plan.  Notwithstanding anything herein to the contrary, unless
designated a “Subsidiary” pursuant to the immediately preceding sentence,
Cingular Wireless LLC, Sterling Commerce, Inc., and their respective subsidiaries shall
not be considered a Subsidiary under this Plan.

    

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.17   AT&T.  "AT&T" shall mean AT&T Inc.

    

    ARTICLE 3   ELIGIBILITY

     

    3.1  Active Participants and
their Dependents. Each Eligible Employee shall be eligible
to participate in this Plan along with his/her Dependent(s) beginning on the effective date of the
employee becoming an Eligible
Employee.

    

    
      Upon becoming an Eligible Employee, he/she shall have 90 days to elect to
participate in this Plan.  In order to continue participation, the
Eligible Employee must pay all applicable contributions.  If an
Eligible Employee terminates participation in this Plan at any time for any
reason, that Eligible Employee and his/her Dependent(s) shall be ineligible to participate in
the Plan at any time in the future.

    

    
       

      3.2  Retired Participants and
their Dependents.  Provisions of this Plan will continue in
effect during Retirement for each Eligible Employee and his/her Dependent(s) with respect to any Eligible Employee
who became a Participant before January 1, 1999.  Neither an Eligible
Employee who became an Eligible Employee after December 31, 1998 nor his/her Dependent(s) shall be eligible for participation
hereunder on or after such Eligible Employee’s
Retirement.

    

     

    3.3  Requirement to Enroll and
Participate in Basic Plans and Medicare.  As a condition to
participation in the Plan, each Participant must be enrolled in, paying for, and
participating in (i) the Basic Plans, or, if applicable, Substitute Basic
Coverage, and (ii) all parts of Medicare for which such Participant is
eligible and for which
Medicare would be primary if enrolled therein, except for Medicare Part D
relating to prescription drug coverage.

    

    
      Notwithstanding any other provision of
the Plan to the contrary, an individual who first becomes an Eligible Employee
in the middle of a Plan Year and who is enrolled in AT&T sponsored group health plans other than
the Basic Plans, will be allowed to participate in the Plan for the remainder of
the Plan Year along with his/her Dependent(s) who are enrolled in such other
AT&T sponsored health plans, as if they were
participating in the Basic Plans.  At the next group enrollment
opportunity for the Basic Plans, the Eligible Employee and his/her Dependent(s) must enroll in the Basic Plans to
continue participation in this Plan.

    

    

     ARTICLE 4   BENEFITS

     

    4.1  Covered
Benefits.
Subject to the limitations in this Article, this Plan provides 100% payment,
through reimbursement or otherwise, of all medical, dental, and vision services not paid under the
Eligible Employee’s (i) Basic Plans or, if applicable, Substitute Basic
Coverage, or (ii) Medicare, provided expenses for such services would qualify as
deductible medical expenses for federal income tax purposes, whether deducted or
not. Contributions or
premiums for participation in this Plan, the Basic Plans, Medicare, or any other
health plan are not considered “services”, and are therefore not eligible
benefits under this Plan.

     

     

    
      
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    4.2  Benefit
Limits.  Benefits paid to any
Eligible Employee or any one of his/her Dependents under this Plan shall not
exceed $50,000 per Plan Year per individual, and benefits paid to any Eligible Employee
and his/her Dependents under this Plan shall not
exceed $100,000 total per Plan Year. Amounts paid to or on behalf of an Eligible
Employee or his/her Dependent(s) under (i) the Basic Plans, or if
applicable, Substitute Basic Coverage, (ii) Medicare, or (iii) any other AT&T sponsored group health plan will not be
included in these limits.

    

    4.3  Priority of Paying Covered
Claims.  Claims for benefits will be
applied against the various health plans and coordinated with Medicare
in the following
order:

    (1)    Medicare, to the extent the Participant
is eligible therefore and such claim is actually paid by
Medicare,

    (2)    Basic
Plans,

    (3)    CarePlus, if
elected,

    (4)    Long Term Care Plan,
if elected,

    (5)    this
Plan.

     

    4.4  Substitute Basic
Coverage.  Notwithstanding any other
provision of this Plan to the contrary, if an Eligible Employee is eligible for
participation under this Plan during Retirement, but not eligible to participate
under the Basic Plans, the Plan shall provide medical, dental, and vision
benefits for the Eligible Employee and his/her Dependent(s) substantially equivalent to the
benefits under the Basic Plans through an insured product (hereinafter,
"Substitute Basic Coverage"). Eligibility for Substitute Basic Coverage is
conditioned upon the Eligible Employee’s payment of contributions in the same
amount that a similarly situated retired Basic Plan participant is required to
pay under the Basic Plans. Such Substitute Basic Coverage shall constitute such
Eligible Employee’s Basic Plans for all purposes under this Plan.  The
costs of Substitute Basic Coverage (except for the required monthly
contributions referenced in this paragraph) shall be borne by AT&T, and the costs of Substitute Basic
Coverage shall not be included in the determination of any Participant’s annual
Plan contribution amount as provided in Article 7.

    

    ARTICLE 5   TERMINATION OF
PARTICIPATION

    

    5.1  Termination of
Participation.  Participation will cease on
the last day of the month in which one of the following conditions
occurs:

    

    
      
        	
              	
                (1)  

              	
                The Participant is no longer a
      participant in the Basic Plans or Substitute Basic Coverage, in
      which case participation ceases for such
    Participant;

              

      

       

       

      
        
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                (2)  

              	
                A
      Participant eligible to enroll in Medicare is no longer a participant in
      all parts of Medicare for which such Participant is eligible to enroll and
      for which Medicare would be primary if enrolled therein, except for
      Medicare Part D relating to prescription drug coverage, in which case
      participation ceases for such
Participant;

              

      

    

    
      

    

    
      
        	
                (3)  

              	
                The Eligible Employee’s
      termination of employment for reasons other than Death, Disability, or Retirement, in which
      case participation ceases for the
      Eligible Employee and his/her Dependent(s);

              

      

    

    
      

    

    
      
        	
                (4)  

              	
                The demotion or designation of an
      Eligible Employee so as to no longer be eligible to participate
      in the Plan, in which case participation ceases for the Eligible employee
      and his/her Dependent(s);

              

      

    

    
      

    

    
      
        	
                (5)  

              	
                The Eligible Employee (or Retired
      Eligible Employee) engages in competitive activity under Article
      8, in which case participation ceases for the Eligible Employee
      (or Retired Eligible Employee) and his/her Dependent(s);
  or

              

      

    

    
      

    

    
      
        	
                (6)  

              	
                Discontinuance of the Plan by
      AT&T, or, with respect to
      a Subsidiary’s Eligible Employees
      (or Retired Eligible Employees), such Subsidiary’s failure to make the
      benefits hereunder available to Eligible Employees employed by
      it (or its Retired Eligible Employees), in which case
      participation ceases for the Eligible Employee (or Retired Eligible
      Employee) and his/her Dependent(s).

              

      

    

    
       

      5.2  Dependents Failure to
Participate in Basic Plans.  If a Dependent ceases
participation under a Basic Plan or, if applicable, Substitute Basic
Coverage, such Dependent’s
participation under this Plan will cease with the same effective
date.

    

     

    5.3  Death.  In the event of the Eligible
Employee’s (or Retired Eligible Employee’s) death, the Eligible Employee’s (or
Retired Eligible Employee’s) Dependents may continue participation in this Plan
as
follows:

    

    
      	
              (1)

            	
              In the event of the death of a
      Retired Eligible Employee such Retired Eligible
      Employee’s Dependents
      may continue participation in this Plan for so long as such
      Dependents are participating in the Basic Plans (or, if applicable, Substitute
      Basic Coverage) and
      are paying any applicable contributions for this Plan as provided in Article
      7.

            

    

     

     

    
      
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              (2)

            	
              In the event of an in-service
      death of an Eligible Employee eligible to participate in the Plan in
      Retirement as provided under Article 3.2, such Eligible
      Employee’s surviving Dependents may
      continue participation in this Plan for so
      long as such Dependents are participating in the Basic Plans
      (or, if applicable
      Substitute Basic Coverage) and are paying any applicable
      contributions for this Plan as provided in Article
      7.  If a surviving spouse of such Eligible Employee otherwise
      eligible for participation in the Plan remarries, his/her participation
      will cease with the effective date of his/her
    marriage.

            

    

    

    
      	
              (3)

            	
              In the event of an in-service
      death of an Eligible Employee not eligible to participate in the Plan in
      Retirement as provided in Article 3.2, such Eligible Employee’s
      Dependent(s) may continue participation in this Plan for a 12-month period
      commencing the month following the month in which such Eligible Employee
      dies as long as such Dependent(s) are participating in the Basic Plans and
      are paying any applicable contributions for this Plan as provided in
      Article 7.  If the Eligible Employee’s Dependent(s) are eligible
      for COBRA, they will automatically be enrolled in COBRA so that there is
      no lapse in coverage, and this 12-month coverage will be integrated and
      run concurrently with COBRA
coverage.

            

    

    

    ARTICLE 6   DISABILITY

     

    6.1  Disability. With respect to any Eligible Employee
who is receiving short term or long term disability benefits under the Officer
Disability Plan, participation under this Plan will be as
follows:

    

    
      
        	
                (1)

              	
                The Eligible Employee will be
      eligible to participate in this Plan for as long as he/she receives short
      term or long term disability benefits under the Officer Disability
      Plan.

              

      

    

    
      

    

    
      
        	
                (2)

              	
                An individual who became an
      Eligible Employee on or after January 1, 1999 will no longer be eligible to
      participate in this Plan once long term disability benefits under the
      Officer Disability Plan are discontinued, unless the Eligible Employee is
      otherwise eligible for continued benefits under this
      Plan.

              

      

    

    
      
      

    

    
      

    

    
      
        	
                (3)

              	
                An Employee who became an Eligible
      Employee before January 1, 1999, will be eligible for
      participation in this Plan as
follows:

              

      

    

    
      

    

    
      
        	
                (a)

              	
                If the individual is Retirement
      eligible at the time long term disability benefits under the Officer
      Disability Plan commence, he/she will be eligible to continue
      participation in this Plan on the same terms and conditions that
      participation would be available to such Eligible Employee in Retirement,
      regardless of his/her continued receipt of long term disability
      benefits.

              

      

    

    
       

      
        
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                (b)

              	
                If the individual is not
      Retirement eligible at the time long term disability benefits under the
      Officer Disability Plan commence, he/she will be eligible to participate
      in this Plan for as long as such Eligible Employee
      participates in the Basic
Plans.

              

      

    

    
      

    

    ARTICLE 7   COSTS

     

    7.1  Costs of the
Plan.  Except as provided below in
this Article 7, costs and expenses incurred in the operation and administration
of this Plan will be borne by AT&T, and each Subsidiary shall reimburse
AT&T for applicable costs and expenses
attributable to Eligible Employees employed by it (and Retired Eligible Employees formerly
employed by it).

     

    7.2  Participant Contributions
for 2006,
2007, and
2008.  For Plan Years 2006 and 2007
contributions made by Participants shall be set annually by the SEVP-HR in an
amount that approximates the aggregate monthly contribution the Participant
would have paid under this Plan and CustomCare as if CustomCare was the
applicable Basic Plan.  The SEVP-HR may adopt tiered rates for
similarly situated groups of Participants based on factors such as the number of
Dependents covered or Medicare eligibility.  For the 2008 Plan Year,
contributions made by Participants shall equal the contributions made by
similarly situated Participants in 2007.

     

    7.3  Eligible Employee
Contributions. Effective January 1, 1999, an Eligible Employee electing to
participate in the Plan will pay to participate in the
Plan while in active service or while receiving short term or long term
disability benefits under the Officer Disability Plan. The contribution for participation may
change annually, effective at the beginning of each Plan
Year.  Except as
provided in Article 7.2 such contribution will equal 10% of the
Plan’s actual costs per Eligible Employee and Retired Eligible Employee for the
entire Plan Year beginning two (2) years prior to the Plan Year for which
the calculation is being made (e.g., the contributions for 2004 are based on the Plan’s costs
during calendar year 2002).

     

    7.4  Retired Eligible
Employees.
Eligible Employees entitled
to participate in the Plan after Retirement or after termination of long term
disability benefits under the Officer Disability Plan who elect to participate
will pay to participate in the Plan. The contribution for participation may
change annually, effective at the beginning of each Plan Year. Except as provided in Article 7.2
such contribution will
equal a percentage of the Plan’s actual costs per Eligible Employee and Retired
Eligible Employee for the entire Plan Year beginning two (2) years prior to the Plan Year for which
the calculation is being made (e.g., the contributions for 2004 are based on the Plan’s costs
during calendar year 2002).  An Eligible Employee retiring prior to
January 1, 1999 will pay a 10% contribution percentage.
 Eligible Employees retiring after
December 31, 1998 shall pay the lower of the annual contribution percentage
determined using such Eligible Employee’s age or years until Retirement as of December 31, 1997
as follows:

    
       

      
        
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              Age As Of

              December 31,
      1997

            	
              Annual Contribution
      Percentage

            	
              OR

            	
              Years Until Retirement As
      Of

              December 31,
      1997

            	
              Annual Contribution
      Percentage

            
	
              if age 55 or
      older

            	
              10%

            	 	
              if retirement
      eligible

            	
              10%

            
	
              if age 50 or older but less than
      55

            	
              25%

            	 	
              if not retirement
      eligible

            	
              10% plus 5% for each whole year*
      until retirement eligibility (not to exceed 50%)

            
	
              if less than age
      50

            	
              50%

            	 	 	 

    

    
      

    

    
      *In the event an Eligible Employee is less
than one whole year from retirement eligibility, the Annual Contribution
Percentage shall be determined as if one whole year from retirement
eligibility.

    

    
      

    

    
      Upon the
death of an Eligible Employee the contribution percentage paid by the surviving
spouse will be equal to the contribution, adjusted (if applicable) for factors
such as the number of Dependents or Medicare eligibility that that would have
been paid by the Eligible Employee had he/she survived.  In the event
there is no surviving spouse but there are surviving eligible Dependents, such
Dependents shall pay a ratable share of the contribution, adjusted (if
applicable) for factors such as the number of Dependents or Medicare eligibility
that would have been paid by the Eligible Employee had he/she
survived.

    

    
      

    

    
      In order to continue participation, the
Retired Eligible Employee or his/her Dependent(s) must pay all applicable
contributions.

    

    
      

    

    
      If a Retired Eligible Employee
terminates participation at any time for any reason, participation of that
Retired Eligible Employee and his/her Dependent(s) may not be reinstated for any reason.

    

    

    ARTICLE 8   COVENANT NOT
TO COMPETE

    

    Non-Competition.  Notwithstanding any other provision of
this Plan, no coverage shall be provided under this Plan with respect to any
Eligible Employee who shall, without the written consent of AT&T, and while employed by AT&T or any Subsidiary thereof, or within three (3)
years after termination of employment from AT&T or any Subsidiary thereof, engage in competition
with AT&T or any Subsidiary thereof or with any business
with which a subsidiary of AT&T or an affiliated company has a
substantial interest (collectively referred to herein as "Employer
business").  For purposes of this Plan, engaging in competition with
any Employer business shall mean engaging by Eligible Employee in any business
or activity in the same geographical market where the same or substantially
similar business or activity is being carried on as an Employer
business.  Such term shall not include owning a nonsubstantial
publicly traded interest as a shareholder in a business that competes with an
Employer business.  However, engaging in competition with an Employer
business shall include representing or providing consulting services to, or
being an employee of, any person or entity that is engaged in competition with
any Employer business or that takes a position adverse to any Employer
business.  Accordingly, benefits shall not be provided under this Plan
if, within the time period and without the written consent specified,
the Eligible Employee either engages
directly in competitive activity or in any capacity in any location becomes
employed by, associated with, or renders service to any company, or parent or
affiliate thereof, or any subsidiary of any of them, if any of them is engaged
in competition with an Employer business, regardless of the position or duties
the Eligible Employee takes and regardless of whether or not the employing
company, or the company that Eligible Employee becomes associated with or
renders service to, is itself engaged in direct competition with an Employer
business.

     

     

    
      
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    ARTICLE 9  MISCELLANEOUS

     

    9.1  Administration.  Subject to the terms of the
Plan, the CEO or
SEVP-HR shall establish
such rules as are deemed necessary for the proper administration of the Plan.
AT&T will compute a "gross-up" allowance
which will be paid to an Eligible Employee to offset any income tax liabilities
incurred as a result of receiving benefits under this Plan. 

    

    9.2  Amendments and
Termination.  This Plan may be modified
or terminated at any time in accordance with the provisions of AT&T's Schedule of
Authorizations.

     

    9.3  Newborns' and Mothers'
Health Protection Act of 1996.  To the extent this Plan
provides benefits for hospital lengths of stay in connection with childbirth,
the Plan will cover the minimum length of stay required for deliveries (i.e., a
48-hour hospital stay after a vaginal delivery or a 96-hour stay following a
delivery by Cesarean section.)  The mother’s or newborn’s attending
physician, after consulting with the mother, may discharge the mother or her
newborn earlier than the minimum length of stay otherwise required by
law.  Such coverage shall be subject to all other provisions of this
Plan.

     

    9.4  Women's Health and Cancer
Rights Act of 1998.  To the extent this Plan provides
benefits for mastectomies, it will provide, for an individual who is receiving
benefits in connection with a mastectomy and who elects breast reconstruction in
connection with such mastectomy, coverage for reconstruction on the breast on
which the mastectomy was performed, surgery and reconstruction on the other
breast to give a symmetrical appearance, and prosthesis and coverage for
physical complications of all stages of the mastectomy, including
lymphedemas.  Such coverage shall be subject to all other provisions
of this Plan.

     

    
      
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    9.5  Mental Health Parity Act of
1996.  To the extent this Plan provides mental health
benefits other than treatment for substance or alcohol abuse, it will not place
annual or lifetime maximums for such benefits that are lower than the annual and
lifetime maximums for physical health benefits.  Such coverage shall
be subject to all other provisions of this Plan.

     

    9.6  Continuation of Coverage
During Family or Medical Leave.  During any period which
an Eligible Employee is on a family or medical leave as defined in the Family or
Medical Leave Act, any benefit elections in force for the Eligible Employee
shall remain in effect.  While the Eligible Employee is on paid leave,
contributions shall continue.  If the Eligible Employee is on an
unpaid leave, the Eligible Employee may elect to prepay required contributions
on a pre-tax basis before the commencement of such unpaid
leave.  Alternatively, the Eligible Employee may elect to make such
payments on an after-tax basis monthly in accordance with an arrangement that
the Plan Administrator shall provide.  If coverage is not continued
during the entire period of the family or medical leave because the Eligible
Employee declines to pay the premium, the coverage must be reinstated upon
reemployment with no exclusions or waiting periods, notwithstanding any other
provision of this Plan to the contrary. If the Eligible Employee does not return
to work upon completion of the leave, the Eligible Employee must pay the full
cost of any health care coverage that was continued on his/her behalf during the
leave.  These rules apply to the COBRA Eligible Programs.

     

    9.7  Rights While on Military
Leave.  Pursuant to the provisions of the Uniformed
Services Employment and Reemployment Rights Act of 1994, an Employee on military
leave will be considered to be on a Leave of Absence and will be entitled during
the leave to the health and welfare benefits that would be made available to
other similarly situated Employees if they were on a Leave of
Absence.  This entitlement will end if the Employee provides written
notice of intent not to return to work following the completion of the military
leave.  The Employee shall have the right to continue his/her
coverage, including any Dependent coverage, for the lesser of the length of the
leave or 18 months.  If the military leave is for a period of 31 days
or more, the Employee may be required to pay 102 percent of the total premium
(determined in the same manner as a COBRA continuation coverage
premium).  If coverage is not continued during the entire period of
the military leave because the Employee declines to pay the premium or the leave
extends beyond 18 months, the coverage must be reinstated upon reemployment with
no pre-existing condition exclusions (other than for service-related illnesses
or injuries) or waiting periods (other than those applicable to all eligible
Employees).

     

    9.8  Qualified Medical Child
Support Orders.  The Plan will comply with any Qualified
Medical Child Support Order issued by a court of competent jurisdiction or
administrative body that requires the Plan to provide medical coverage to a
Dependent child of an Eligible Employee.  The Plan Administrator will
establish reasonable procedures for determining whether a court order or
administrative decree requiring medical coverage for a Dependent child meets the
requirements for a Qualified Medical Child Support Order.  The cost of
coverage or any additional cost of such coverage, if any, shall be borne by the
Eligible Employee.

     

    
      
        10

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.9  Right of
Recovery.  If the Plan has
made an erroneous or excess payment to any Participant, the Plan Administrator
shall be entitled to recover such excess from the individual or entity to whom
such payments were made.  The recovery of such overpayment may be made
by offsetting the amount of any other benefit or amount payable by the amount of
the overpayment under the Plan.

    

    ARTICLE 10   COBRA

     

    10.1  Continuation of Coverage
Under COBRA.  Participants shall have all COBRA
continuation rights required by federal law and all conversion
rights.  COBRA continuation coverage shall be continued as provided in
this Article 10.

     

    10.2  COBRA Continuation Coverage
for Terminated Participants.  A covered Participant may
elect COBRA continuation coverage, at his/her own expense, if his participation
under this Plan would terminate as a result of one of the following Qualifying
Events: an Employee’s termination of employment or reduction of hours with an
Employer.

     

    10.3  COBRA Continuation Coverage
for Dependents.  A Qualified Dependent may elect COBRA
continuation coverage, at his/her own expense, if his/her participation under
this Plan would terminate as a result of a Qualifying Event.

     

    10.4  Period of Continuation
Coverage for Covered Participants.  A covered
Participant who qualifies for COBRA continuation coverage as a result of an
Eligible Employee’s termination of employment or reduction in hours of
employment described in Subsection 10.2 may elect COBRA continuation coverage
for up to 18 months measured from the date of the Qualifying Event. 
Coverage
under this Subsection 10.4 may not continue beyond the:

    

    
      
        	
                (1)  

              	
                date
      on which the Participant’s Employer ceases to maintain this
      Plan;

              

      

    

    
      

    

    
      
        	
                (2)  

              	
                last
      day of the month for which premium payments have been made with respect to
      this Plan, if the individual fails to make premium payments on time, in
      accordance with Subsection
10.6;

              

      

    

    
      

    

    
      
        	
                (3)  

              	
                date
      the covered Participant becomes entitled to Medicare;
  or

              

      

       

       

      
        
          11

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      

    

    
      
        	
                (4)  

              	
                date
      the covered Participant is no longer subject to a pre-existing condition
      exclusion under the Participant's other coverage or new employer plan for
      the type of coverage available under the COBRA Eligible Program for which
      the COBRA election was made.

              

      

    

    
       

      10.5  Period of COBRA Continuation
Coverage for Dependents.  If a Qualified Dependent
elects COBRA continuation coverage under a COBRA Eligible Program as a result of
the an Employee’s termination of employment as described in Subsection 10.2,
continuation coverage may be continued for up to 18 months measured from the
date of the Qualifying Event.  COBRA continuation coverage for all
other Qualifying Events may continue for up to 36 months.

    

    

    Continuation
coverage under this Subsection 10.5 with respect to a COBRA Eligible Program may
not continue beyond the date:

    

    
      
        	
                (1)  

              	
                on
      which premium payments have not been made, in accordance with Subsection
      10.6 below;

              

      

    

    
      

    

    
      
        	
                (2)  

              	
                the
      Participant becomes entitled to
Medicare;

              

      

    

    
      

    

    
      
        	
                (3)  

              	
                on
      which the Employer ceases to maintain this Plan;
  or

              

      

    

    
      

    

    
      
        	
                (4)  

              	
                the
      Participant is no longer subject to a pre-existing condition exclusion
      under the Participant’s other coverage or new employer plan for the type
      of coverage available under this
Plan.

              

      

    

    
       

      10.6  Contribution Requirements
for COBRA Continuation Coverage.  Covered Participants
and Qualified Dependents who elect COBRA continuation coverage as a result of a
Qualifying Event will be required to pay continuation coverage
payments.  Continuation coverage payments are the payments required
for COBRA continuation coverage that is an amount equal to a reasonable estimate
of the cost to this Plan of providing coverage for all covered Participants at
the time of the Qualifying Event plus a  2% administrative
expense.  In the case of a disabled individual who receives an
additional 11-month extended coverage under COBRA, the Employer may assess up to
150% of the cost for this extended coverage period.  Such cost shall
be determined on an actuarial basis and take into account such factors as the
Secretary of the Treasury may prescribe in regulations.

    

    

    Covered
Participants and Qualified Dependents must make the continuation coverage
payment prior to the first day of the month in which such coverage will take
effect.  However, a covered Participant or Qualified Dependent has 45
days from the date of an affirmative election to pay the continuation coverage
payment for the first month's payment and the cost for the period between the
date medical coverage would otherwise have terminated due to the Qualifying
Event and the date the covered Participant and/or Qualified Dependent actually
elects COBRA continuation coverage.

     

    
      
        12

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
covered Participant and/or Qualified Dependent shall have a 30-day grace period
to make the continuation coverage payments due
thereafter.  Continuation coverage payments must be postmarked on or
before the completion of the 30-day grace period.  If continuation
coverage payments are not made on a timely basis, COBRA continuation coverage
will terminate as of the last day of the month for which timely premiums were
made.  The 30-day grace period shall not apply to the 45-day period
for the first month’s payment of COBRA premiums as set out in the section
above.

    

    If
payment is received that is significantly less than the required continuation
coverage payment, then continuation coverage will terminate as of the last day
of the month for which premiums were paid.  A payment is considered
significantly less than the amount due if it is greater than the lesser of $50
or 10% of the required continuation coverage payment.  Upon receipt of
a continuation coverage payment that is insignificantly less than the required
amount, the Plan Administrator must notify the covered Participant or Qualified
Dependent of the amount of the shortfall and provide them with an additional
30-day grace period from the date of the notice for this payment
only.

    

    10.7  Limitation on Participant's
Rights to COBRA Continuation Coverage.

    

    
      
        	
                (1)  

              	
                If
      a Qualified Dependent loses, or will lose medical coverage under this Plan
      as a result of divorce, legal separation, entitlement to Medicare, or
      ceasing to be a Dependent, such Qualified Dependent is responsible for
      notifying the Plan Administrator in writing within 60 days of the
      Qualifying Event.  Failure to make timely notification will
      terminate the Qualified Dependent's rights to COBRA continuation coverage
      under this Article.

              

      

    

    
      

    

    
      
        	
                (2)  

              	
                A
      Participant must complete and return the required enrollment materials
      within 60 days from the later of (a) the date of loss of coverage, or (b)
      the date the Plan Administrator sends notice of eligibility for COBRA
      continuation coverage.  Failure to enroll for COBRA continuation
      coverage during this 60-day period will terminate all rights to COBRA
      continuation coverage under this Article.  An affirmative
      election of COBRA continuation coverage by a Participant or his/her spouse
      shall be deemed to be an election for that Participant's Dependent(s) who
      would otherwise lose coverage under the
Plan.

              

      

    

    
       

      10.8  Subsequent Qualifying
Event.  If a second Qualifying Event occurs during an
18-month extension explained above, coverage may be continued for a maximum of
36 months from the date of the first Qualifying Event.  In the event
the Dependent loses coverage due to a Qualifying Event and after such date the
Participant becomes entitled to Medicare, the Dependent shall have available up
to 36 months of coverage measured from the date of the Qualifying Event that
causes the loss of coverage.  If the Participant was entitled to
Medicare prior to the Qualifying Event, the Dependent shall have up to 36 months
of coverage measured from the date of entitlement to
Medicare.

    

     

    
      
        13

      

      
        
        

        
          

        

      

      
        
        

      

       

      10.9  Extension of COBRA
Continuation Period for Disabled Individuals.  The
period of continuation shall be extended to 29 months in total (measured from
the date of the Qualifying Event) in the event the individual is disabled as
determined by the Social Security laws within 60 days of the Qualifying
Event.  The individual must provide evidence to the Plan Administrator
of such Social Security determination prior to the earlier of 60 days after the
date of the Social Security determination, or the expiration of the initial 18
months of COBRA continuation coverage.  In such event, the Employer
may charge the individual up to 150% of the COBRA cost of the
coverage.

    

    

    ARTICLE 11   PRIVACY OF MEDICAL
INFORMATION

    

    11.1  Definitions.  For purposes of this Article
11, the following defined terms shall have
the meaning assigned to such terms in this subsection:

    

    
      
        
          	 (1)	 “Business
      Associate” shall mean an outside entity or person that performs
      administrative or other functions on behalf of the
  Plan;

        

      

       

       

      
        	(2)	 “Health
      Care Operations” shall mean activities that involve, but are not limited to, quality assessment
      and improvement, the assessment of health care
      professionals, disease management, case management, legal services,
      benefits fraud and abuse investigations, and business
      planning and development (including cost-management and planning
      analyses).  Health Care Operations also include, but are
      not limited to, general health care plan administrative functions such
      as management activities relating to compliance with
      HIPAA’s administrative simplification requirements, customer service
      involving the provision of data analysis for the Plan Sponsor of
      the HIPAA Plan and other entities whose employees participate in the
      HIPAA Plan, resolution of internal grievances and due diligence in
      connection with the sale or transfer of assets to a
      potential successor in interest if the potential successor is a covered
      entity, or will become a covered entity, under
      HIPAA;

      

    

     

    
 

    
      	(3)	 “HIPAA”
      shall mean the Health Insurance Portability and Accountability Act of 1996 as
      amended from time to time.

    

    
       

    

    
      

      
        	(4)	 “Payment”
      shall mean any activities performed that involve making benefit determinations and
      payment. These activities include, but are not limited to, billing,
      reviews for medical necessity, claims management, coordination of
      benefits, adjudication of health benefits claims (including appeals and
      other payment-related disputes), subrogation, plan reimbursement,
      investigations of potential fraud, determining employee contributions,
      reviews of appropriateness of care, preauthorizations and utilization
      reviews;

      

    

     

    
      
        14

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                (5)

              	 “Protected
      Health Information” or “PHI” shall mean
      individually  identifiable information
      created or retained by the HIPAA Plan beginning on or after April 14, 2003
      which pertains to a person’s past, present or future physical or mental
      health, the health care the person is receiving or has received in the
      past and all past, present or future Payments for the person’s health
      care;

      

       

       

      
        	(6)	 “Treatment”
      means the provision, coordination or management of health care and related services
      by one or more health care providers. This category includes, but is not
      limited to, consultations and referrals between health care providers, the
      coordination or management of health care by a health care provider with a
      third party and the referral of a patient for health care from one health
      care provider to
another.

      

    

    
      

    

    
11.2  Privacy Provisions Relating
to Protected Health Information
(“PHI”).  The Plan and its Business Associates
(collectively referred to in this Article 11 as a “HIPAA Plan”) shall use and
disclose PHI to the extent permitted by, and in
accordance with, HIPAA.  Specifically, each HIPAA Plan will use and
disclose PHI for Treatment, Payment and Health Care
Operations.

     

    11.3  Disclosure of De-Identified
or Summary Health Information.  The HIPAA Plan, or, with
respect to the HIPAA Plan, a health insurance issuer, may disclose de-identified
or summary health information to the Plan Sponsor of the HIPAA Plan (and its
affiliates) if such entity requests the de-identified or summary health
information for the purpose of:

     

     

    
      	 (1)	 Obtaining
      premium bids from health plans for providing health insurance coverage under the HIPAA
      Plan;

    

     

    
      	(2)	 Modifying,
      amending or terminating the group health benefits under the HIPAA
      Plan;

    

    
      
        
        

In addition, the HIPAA Plan or a health
insurance insurer with respect to the HIPAA Plan may disclose to the Plan
Sponsor of the HIPAA Plan (or its affiliates) information on whether an
individual is participating in the group health benefits provided by the HIPAA
Plan or is enrolled in, or has ceased enrollment with health insurance offered
by the HIPAA Plan.

    

    
      

      
        
          15

        

        
          
          

          
            

          

        

        
          
          

        

         

        11.4  The HIPAA Plan Will Use and
Disclose PHI as Required by
Law or as Permitted by the
Authorization of the Participant or Beneficiary.

      

    

    

    Upon submission of an authorization
signed by a Participant, beneficiary, subscriber or
personal representative that meets HIPAA requirements, the HIPAA Plan will
disclose PHI to a Company (or affiliate) sponsored
pension plan, long term care plan, disability plan or other benefit plan
sponsored by the Company (or an affiliate) with a need to access this
PHI for purposes related to such benefit
plan’s administration. Authorizations will also be honored when provided to the
HIPAA Plan with respect to job accommodation requests, Family Medical Leave Act
requests, drug/substance abuse testing, fitness for duty exams, and workers compensation
claims.

    

    
      In addition, PHI will be disclosed to the extent
permitted or required by law, without the submission of an authorization
form.

    

    
       

      11.5  Disclosure of
PHI to the Plan
Sponsor.  The HIPAA Plan will disclose
information to the Plan Sponsor only upon certification from the Plan Sponsor
that the HIPAA Plan documents have been amended to incorporate the assurances
provided below.

    

    

    
      The Plan Sponsor agrees
to:

    

    
      

    

    
      
        	
                (1)

              	
                not use or further disclose
      PHI other than as permitted or
      required by the HIPAA Plan document or as required by
      law;

              

      

    

    
      

    

    
      
        	
                (2)

              	
                ensure that any affiliates or
      agents, including a subcontractor, to whom the Plan Sponsor provides
      PHI received from the HIPAA Plan,
      agrees to the same restrictions and conditions that apply to the Plan
      Sponsor with respect to such PHI;

              

      

    

    
      

    

    
      
        	
                (3)

              	
                not use or disclose PHI for employment-related actions
      and decisions unless authorized by the individual to whom the PHI
  relates;

              

      

    

    
      

    

    
      
        	
                (4)

              	
                not use or disclose PHI in connection with any other
      benefits or employee benefit plan of the Plan Sponsor or its affiliates
      unless permitted by the Plan or authorized by an individual to whom the
      PHI
  relates;

              

      

    

    
      

    

    
      
        	
                (5)

              	
                report to the Plan any
      PHI use or disclosure that is
      inconsistent with the uses or disclosures provided for of which it becomes
      aware;

              

      

    

    
      

    

    
      
        	
                (6)

              	
                make PHI available to an individual in
      accordance with HIPAA’s access
rules;

              

      

    

    
       

      
        
          16

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
       

      
        	
                (7)

              	
                make PHI available for amendment and
      incorporate any amendments to PHI in accordance with
      HIPAA;

              

      

    

    
       

      
        	(8)	make
      available the information required to provide an accounting of
      disclosures;

      

    

     

    
      
        	
                (9)

              	
                make internal practices, books and
      records relating to the use and disclosure of PHI received from the HIPAA Plan
      available to the Secretary of the United States Department of Health and
      Human Resources for purposes of determining the Plan’s compliance with
      HIPAA; and

              

      

    

    
      

    

    
      
        	
                (10)

              	
                if feasible, return or destroy all
      PHI received from the HIPAA Plan that
      the Plan Sponsor still maintains in any form, and retain no copies of such
      PHI when no longer needed for the
      purpose for which disclosure was made (or if return or destruction is not
      feasible, limit further uses and disclosures to those purposes that make
      the return or destruction
infeasible.)

              

      

    

    
      

    

    11.6  Separation Between the Plan
Sponsor and the HIPAA Plan.  In accordance with HIPAA,
only the following employees and Business Associate personnel shall be given
access to PHI:

    

    
      
        	
                (1)

              	
                employees of the AT&T Benefits and/or AT&T Executive Compensation
      organizations responsible for administering group health plan benefits
      under the HIPAA Plan, including those employees whose functions in the
      regular course of business include Payment, Health Care Operations or
      other matters pertaining to the health care programs under a HIPAA
      Plan;

              

      

    

    
      

    

    
      
        	
                (2)

              	
                employees who supervise the work
      of the employees described in (1),
  above;

              

      

    

    
      

    

    
      
        	
                (3)

              	
                support personnel, including other
      employees outside of the AT&T Benefits or AT&T Executive Compensation
      organizations whose duties require them to rule on health plan-related
      appeals or perform functions concerning the HIPAA
    Plan;

              

      

    

    
      

    

    
      
        	
                (4)

              	
                investigatory personnel to the
      limited extent that such PHI is necessary to conduct
      investigations of possible
fraud;

              

      

    

    
      

    

    
      
        	
                (5)

              	
                outside and in-house legal counsel
      providing counsel to the HIPAA
Plan;

              

      

    

    
      

    

    
      
        	
                (6)

              	
                consultants providing advice
      concerning the administration of the HIPAA Plan;
  and

              

      

    

    
       

       

      
        
          17

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      
        	
                (7)

              	
                the employees of Business
      Associates charged with providing services to the HIPAA
      Plan.

              

      

    

    
      
The persons identified above shall have
access to and use PHI to the extent that such access and use
is necessary for the administration of group health benefits under a HIPAA
Plan.  If these persons do not comply with this Plan document, the
Plan Sponsor shall provide a mechanism for resolving issues of noncompliance,
including disciplinary sanctions. 

       

       

       

       

       

       

       

       

       

       

      18ex10i.htm

    Exhibit
      10-i

    AT&T
      Inc.

    Retirement
      Plan for Non-Employee Directors

     

    Effective
      February 1, 1986

    

    Preamble

    

    The
      Retirement Plan for Non-Employee Directors (the "Retirement Plan") provides
      retirement benefits to certain Directors of AT&T Inc. (the "Corporation")
      whose right to payment hereunder is not guaranteed.  All rights,
      hereunder shall be governed by and construed in accordance with the laws of
      Missouri.

    

    Administration

    

    The
      Retirement Plan shall be administered by the Officer of the Corporation ("Plan
      Administrator") as may be designated by the Chief Executive
      Officer.  The Plan Administrator may delegate any or all duties
      hereunder to other individuals.  The Plan Administrator's decisions
      regarding the interpretation and application of the Retirement Plan shall be
      binding on all parties.

    

    Eligibility

    

    An
      individual who has never been employed by the Corporation or any of its
      subsidiaries, who began service as a Director of the Corporation on or before
      November 21, 1997, who terminates service as a Director of the Corporation
      on or
      after February 1, 1986, and who served as a Director of the Corporation ("Board
      Service") for five years or more shall be eligible to receive benefits under
      the
      Retirement Plan (a "Participant").  For the purpose of determining
      eligibility hereunder, service as a Director of Southwestern Bell Telephone
      Company prior to January 1, 1984, shall be considered Board Service
      hereunder.

    

    Directors
      of companies acquired by the Corporation, directly or indirectly, pursuant
      to a
      merger, consolidation, acquisition or otherwise who are appointed to the
      Corporation's Board pursuant to the agreement providing for such transaction,
      or
      any amendments thereof, or any related agreements, shall not be eligible to
      participate in the Retirement Plan, unless otherwise provided by the Human
      Resources Committee of the Board.

    

    Benefit
      Amount

    

    Participants
      shall receive an annual benefit equal to 10% of the annual retainer for Board
      Service (exclusive of retainers for Board committees or meeting fees) in effect
      upon termination of Board Service for each complete year of Board Service,
      with
      a maximum annual benefit of 100% of the applicable annual retainer.

    Unless
      a Participant terminates Board Service at or after age 70, benefits under the
      Retirement Plan shall be actuarially reduced for each month the initial payment
      date precedes the Participant's attaining age 70; provided, however, that there
      shall be no reduction in benefits if payments commence prior to age 70 if a
      Participant terminated Board Service (a) on account of a permanent and total
      disability in accordance with the definition of Section 22(e)(3) of the Internal
      Revenue Code or any successor provision, or (b) upon the expiration of the
      final
      term of Board Service for which the Participant was of age to stand for
      election.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Manner
      and Term of Payments

    

    Benefit
      payments shall commence on the first day of the first calendar quarter following
      a Participant's termination of Board Service and shall be paid quarterly
      thereafter for the longer of the life of the Participant or the 10-year period
      commencing on the date of the first payment and ending on the day next preceding
      the tenth anniversary of such date (Life with 10-Year Certain
      Benefit).  If a Participant who is receiving a Life with 10-Year
      Certain Benefit dies prior to the expiration of the 10-year period described
      above, the Participant's Beneficiary shall be entitled to receive the remaining
      Life with 10-Year Certain Benefit installments which would have been paid to
      the
      Participant had the Participant survived for the entire 10-year
      period.  Each benefit payment shall be one-quarter of the
      Participant's annual benefit net of applicable withholding taxes if
      any.

    

    If
      an individual with five years or more of Board Service dies while still serving
      as a Director, a pre-retirement death benefit will be calculated and paid as
      though the individual had retired on the date of death, except that no actuarial
      reduction shall apply if the individual dies before attaining age
      70.

    

    No
      right or interest in the Retirement Plan or to Retirement Plan benefits shall
      be
      assignable or transferable or shall be subject to any lien, obligation or
      liability of any Participant.

    

    Term
      of Retirement Plan

    

    The
      Retirement Plan shall remain in effect until terminated by the AT&T Inc.
      Board of Directors, which may amend the Retirement Plan from time to
      time.

    

    

    

    

    

    Revised:
      November 18, 2005 - Name Change

     

    -
      2
      -

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