Negotiators met on both July 2 and July 3 and talked about a host of items.

PEF and the State shared more detail about their positions on Article 9, Health Insurance. The discussion was both useful and productive, as we now have a clearer understanding of the needs each party hopes to address in this round of negotiations. With issues as complex as health insurance, there will be many discussions between the parties before it is resolved, and during that process, the proposals and positions of each party will change as we work toward an agreement. To this point, we each have presented only our initial “opening” position, and while they will no doubt change before negotiations are concluded, they provide some insight into the main objectives of each party.

PEF presented a detailed proposal outlining our proposals for improvements in the health insurance benefits. We expressed our strong need to see real and meaningful improvements made to the State Dental plan. Our proposal also included language to move to a “stand alone” prescription drug program. We have proposed enhancements to the Empire Plan benefit package, and we are trying to find ways to assure the continued viability of the network of participating providers in that program.

The State’s proposal, while less detailed, communicated their need to save money though changes in the health insurance benefits. Although we have no indication is which of these proposals are higher priorities than the others, they have proposed making dramatic changes in the way the Empire Plan is structured and in how the level of benefits is determined for all enrollees.

Specific to the Empire Plan, the State proposed, among other things, that a network of participating hospitals be established and full payment by the Plan will be made only at participating hospitals. They have told us they need to increase the amounts of the various Empire Plan co-pays but they have not yet provided an amount associated with the increase. The State proposed to change the methodology used to determine the level of reimbursement for using non-participating providers (which will increase the cost to the enrollee. For the Empire Plan Prescription Drug Program, the State will propose a three tiered drug system with different (but so far unspecified) co-pays for generic, brand name (preferred) and brand name (non-preferred) drugs.

The most dramatic proposals affect all enrollees in the Empire Plan and the HMOs. The State wants to increase the percentage all enrollees pay toward their bi-weekly premium. Perhaps even more significant is their proposal to link the State share of Premium for Retiree Health Insurance to an individual’s years of service. The starting point, under this proposal, is that retirees with 10 years of state service at retirement would pay 50% of the individual coverage (compared to the current 10%) and 65% of dependent coverage (currently 25%). (Their proposal does not intend to apply to employees already retired).

It is no surprise to those of you who attended one of the over 50 negotiation’s oriented membership meetings our PEF Team held across NYS or those of you who’ve visited the FAQ section of the PEF CONTRACT ’03 Web (www.pef.org) that one of PEF’s priorities in this round of bargaining is to successfully fend off any significant concessionary demands by the employer in the health benefits arena. Given the differences in the State’s and PEF’s proposed changes, it is clear that health insurance will be one of the more challenging areas of negotiations.

In addition to Health Benefits, the negotiators discussed contract articles 14, 20, 32 and 36 as well as the Union’s proposal for greater protections in the employee privacy area.

- Negotiators meet again on July 9. Topics on the agenda include a presentation by the Union on the Article 34 grievance procedure – what works and what doesn’t.