RESULTS OF THE JOINT RETIREE HEALTHCARE COMMITTEE NEGOTIATIONS

As we have reported in the past, as negotiated in 2004, each year the JRHC reviews the formerly represented retiree healthcare costs, projected by the Company, to have exceeded the negotiated Retiree Healthcare Caps for the upcoming year. The JRHC is required to “True Up” the balance of the excess cost by making changes to the Medical and/or Prescription Plan Designs, as well as Provider recommended programs designed to help save future costs for the Plans and for the Retirees. The JRHC must also consider possible increases to Retiree Contributions over and above those mandated by the collective bargaining agreement.

The results of these negotiations were very positive for the upcoming plan year.

Premiums - The Committee was able to hold the current premiums flat for the third year in a row for the POS and MAPPO! The contributions for Pre-65 Retirees will remain at 14.5% for single and 29% for family. The premiums for the Post 65 Retirees will continue to be 10% for single and 20% for families. However, due to the enormous cost to the plan; the cost adjustment contributions for those who elect Traditional Indemnity (TI) over the default MA PPO will continue and have increased significantly. The cost adjustment contributions for pre 3/1/90 retirees who elect TI will be 18% single and 36% family. For those retirees who are post 3/1/90 who elect TI the cost adjustment contributions coupled with the premiums will be 28% single and 56% family.

Prescription Drug Program - Slight modifications to the prescription drug co-payments were made for both retail and mail order. The new co-payments are Retail - $14/50/85 (currently $14/47/82) and Mail Order - $35/125/212.50 (currently $33/118/205). The out of pocket maximum remain the same at $1,700. The retail deductible will be increased to $115 from the current $100. The Prescription Drug Utilization Programs that we currently have in place will continue to expand to include other categories of drugs. In addition, we are currently looking into a savings program that will help our retirees who are utilizing Specialty Drugs. We will keep you apprised as more information becomes available.

There are no changes to the Medical and Dental plans.

If you have any questions, please send them via e-mail to Mary Jo Reilly:  msherman@cwa-union.org