9/12/2003

Table Talk

The negotiators met on September 10 and 11. On September 10 the Union presented the last of its proposed contract language changes and responded to employer questions. The language dealt with Nursing and Institutional Issues. We also provided the State with economic demands in the few articles remaining where we had “to be named later” placeholders. The union has not made a specific wage proposal and will not do so until the pace of bargaining heats up. The State presented its costing of PEF’s initial demands and explained the methodology used for each calculation. The parties did not reach any tentative agreements.

On September 11 Health Insurance experts for both sides met for the first time since early July. The State confirmed they understood the importance of PEF’s demand for an improved Dental program. Although not tying the two, the State went on to explain the importance to them of prescription cost control. The negotiators did not discuss in any detail the State’s 2 main Premium Contribution related proposals both of which would shift costs away from the state - one to the employees and the other to future retirees. They are:

1) The State proposes to move from a 90% employer/10% employee contribution rate to an 85%/15% split for individuals and from a 75%/25% to a 70%/30% for dependent coverage in the Empire Plan. The State’s premium contribution for HMO coverage is capped at the Empire Plan rate so any change here would negatively impact all HMO enrollees also.

2) The State proposes to tie the State's maximum contribution rate for a future retiree’s health insurance premium to the retiree’s actual State seniority using the following method.

10 years – 50% of Individual / 35% of Dependent

15 years – 58.75% of Individual / 43.75% of Dependent

20 years - 67.5% of Individual / 52.5% of Dependent

25 years – 76.25% of Individual / 61.25% of Dependent

30 years – 85% of Individual / 70% of Dependent

Lastly, the negotiators discussed the unique health benefit problems faced by PEF members working in Chicago.

Negotiations resume on Tuesday, September 23. With PEF now having completed its entire presentation we look forward to responses from the State negotiators.

On October 11 PEF negotiators will again meet with State negotiators to discuss Health Benefits.

On October 9 PEF representatives will meet with other Union representatives who are members of the State Employee Coalition on Health Insurance Negotiations. All unions negotiating with the State - except one - are members of the coalition. PEF began the coalition in order to share information and build alliances.

Q&A – VRWS Program

Q. On the Contract Negotiation summary for 9/4/03, can someone describe what is meant by "Changes to the VRWS program lead the agenda." Are changes being proposed by PEF or GOER? What types of changes? I am a PEF member currently utilizing this program, and hope to continue to be able to during the upcoming contract period. Thank you.

A. The State has proposed no changes to the VRWS program. The Union has proposed modest improvements to VRWS as well as the movement of the program into a new contract article entitled "Flexible Work Environment". The bottom line is that you and the other 670 plus PEF folks who enjoy VRWS will see no diminishment in the program based upon what is currently on the bargaining table.

Speaking of Health Benefits here is a timely article excerpted from “Survey Says Health Insurance Premiums Rose in Past Year”
Washington Post
By Bill Brubaker
September 9, 2003
See the entire article at http://www.washingtonpost.com/wp-dyn/articles/A47157-2003Sep9.html

Health insurance premiums for American employees rose 13.9 percent during the past year, the biggest annual jump since 1990, according to a survey of employers released today in Washington.

"A key finding, which is not entirely surprising but is still terribly important for employers and workers and the economy, is that we did not find any letup in the rate of increase of health care costs in 2003," Drew E. Altman, chief executive of the Kaiser Family Foundation, said in an interview.

"Actually, the rate of increase for premiums was a little bit higher than last year, when it was 12.9 percent. So that's bad news for employers. But it's especially bad news for working people who are again paying more."

Employers attributed the higher premiums to higher prescription drug spending, higher hospital costs and a decision by health insurers to raise premiums to boost their own profitability.

The average 13.9 percent hike marks the seventh consecutive year that premiums have increased and the third straight year of double digit increases, the survey said.

Employees also faced higher deductibles for out-of-network services in PPO (preferred provider organization) plans, higher copayments for office visits in HMO plans and higher copayments for prescription drugs, the survey reported.

And a trend toward eliminating health benefits for retirees held steady this year. The survey found that 38 percent of all large employers (200 or more workers) offered retiree health coverage this year, almost unchanged from last year's survey. In 1988, however, 66 percent of large employers offered retiree coverage.