We Want a DECREASE in Healthcare Costs
Last Thursday July 11th Union representatives met with management to discuss our healthcare plans for 2020 as part of our Labor Management Health Care Committee. We proposed a 2% decrease in health care costs to members and a return of interest from our reserves back to our plan.
Although this is supposed to be a consensus process between Labor and Management, the Employer admitted they had made up their minds before the meetings began. The employer is demanding NO changes to the plan (meaning no decrease to our workers), despite the actuary’s recommendation to decrease costs, citing vague fears of not having enough money to pay future healthcare costs.
WHY THE EMPLOYER’S POSITION IS WRONG:
The plan has 55 million dollars in reserve, 34 million more than the mandated reserve we need as a buffer against unexpected claims.
The plan is taking in 11% more money than it’s using to cover our healthcare costs. Last year the plan took in 13.7 million more than we used. This year we are on track to add another 14 million or more than we use.
The 34 million excess comes after an 11.3% increase in costs to members over the past two year. The plan is taking in more than it needs and the Employer is refusing to give us even one dime back.
We don’t even benefit from this large stockpile of money. The interest we earn from these reserves doesn’t go to our plan but to the County’s General Fund for administration to use as it likes. This year that interest will be around 1 million dollars.
We NEED affordable health insurance.
We’re CALLING on the Employer to do the right thing and decrease costs to members by 2% and return the reserve interest back to the plan.
Because Union Representatives on the Committee have stood united on the issue of interest, the Employer said they would be open to discussing returning the interest on our reserves back to the plan.