Right now we can file this under rumor but the rumor comes from a reliable source.
"Late last night the CWA agreed to a LOA to 27% reduced core plan but higher standard and value plans on healthcare."
The question to be asked on this rumor is how much higher are they talking about?
The Association (CWA/IBT PSA) has been working on an insurance plan proposal that would give our members coverage like they had at US Airways at the same rates that they would be paying at AA without making the company pay more for their contribution. Our Actuarial firm created a plan, however with the increasing medical costs and the rich benefits of the plan we wanted to provide, there was no way to keep the costs to our members low and we would have to increase the premiums in order to fund the plan to pay for all of the medical claims. Everyone would be forced to elect the plan in order to fund it and keep it solvent to pay for all of the medical costs.
Since approximately 3,000 of our members have opted out of taking the AA insurance, and the over 65% that have opted for the Standard or Core options, the bargaining committee decided it would not be fair to ask our members to vote on something that would be more expensive than what the AA plans offer and make everyone take the insurance. This means we will be staying in the AA insurance plans with the other union groups and non-covered employees.
The company came to the union and told us that they have examined the Core plan premiums and would like to reduce the premiums for 2018. This reduction would not affect the Standard or Value premium calculations. If the letter of agreement was not signed, the higher premiums would be in effect for our members who select the Core option. Again, there is no effect to the Standard or Value plans.
Our bargaining committee decided that they would vote to accept the reduction in the Core premiums to benefit our members who are healthy and choose that plan rather than keep the higher premiums for that option. Only one bargaining member chose to vote to keep the higher Core plan rates.
What does that mean for the rates in the Standard and Value plans? Nothing. The calculation of the Standard plan premiums are contractual and can’t be changed. The Value plan premiums were also not affected by the Core plan premium change. If we didn’t sign the agreement the Standard and Value plan premiums would remain the same as are being offered to you for 2018 and the Core plan premiums would continue to be almost as high as the Standard premiums.
Every year in July the company has their actuarial firm review the claims against the premiums and projected medical and prescription costs for the following year. They use that information to determine if the company is setting enough money aside to pay all the claims that come in for each plan. The projected national average increase to medical costs is 6%-9% for 2018. The Value plan will increase
6.3% in premiums and the Standard plan will increase 3.9%. This is within the national average. The change in the Core plan premiums does not affect the Standard plan calculations as it is contractual. It also doesn’t affect the Value plan calculations.
We are continuing to advocate for improved benefits for our members. In this climate of increased insurance, medical and prescription costs in this country it is important that we continue to work with the other unions and the company to make sure we have affordable healthcare for our members.
In solidarity,
Kimberly Barboro
President Teamsters Local 104
IBT National Coordinator for Customer Service
