NOK – 006
August 21, 2017
To: All CWA Nokia Local Presidents and Formerly Represented Retirees
Re: Update - Results of the Joint Retiree Healthcare Committee (JRHC) Negotiations for Calendar Year 2018
As previously reported, the projected Healthcare Cost Deficit for plan year 2018 was $30 Million. The Joint Retiree Healthcare Committee (JRHC) made modest changes to the prescription drug co-pays, the medical plan deductibles and annual deductible for dental, as well as the contractual premium increase. All of these changes garnered a savings of $5,566,303. The remainder of the deficit, $24,433,697.00, was slated to come out of the Taft Hartley Trust.
During the JRHC negotiations, the Company was in the process of negotiating with various Pharmacy Benefit Managers (PBM) to see who would manage the prescription drug program. Express Scripts, our current vendor, guaranteed improved pricing terms that will save the plan, and ultimately our Retirees, money. Express Scripts was the vendor chosen and I am pleased to report that based on these results the plan is projected to save $8.8 Million.
In addition, United Healthcare (UHC) has agreed to increase the number of days in a skilled nursing facility from 100 days to 120 days at no additional cost to the plan. The premium the plan pays to United Healthcare has lowered slightly for an additional savings of $120,000.
The total savings between the PBM negotiations and the UHC premium savings is $8,920,000. This will result in a reduction in the Taft Hartley Trust reimbursement from $24,433,697 to $15,513,697.
If you have any questions, please contact me: email@example.com.