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Old 08-07-2013, 03:20 PM   #1  
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Default FDX - Shift to High Deductible Health Plans

I understand our current health benefits are defined by the current CBA, but still
wondering how this is being addressed during negotiations

While we're trained to avoid thunderstorms everyday --- are we ready for this "tsunami of change"?

*******************************************

FedEx's shift to high-deductible health plans soon may be norm

Shift of expenses to employees is an effort to hold down costs and to avoid a tax on Cadillac health plans.

Article by: WAYNE RISHER
Scripps Howard News Service

MEMPHIS --- In a move likely to be repeated at large companies nationwide, FedEx's 400,000 employees and family members will shoulder a larger share of health-care costs next year, partly to protect against coming penalties on overly generous plans.

The changes are designed to slow one of the company's fastest-growing expenses, expected to top $1.5 billion next year, and to protect against Obamacare's penalties on overly generous plans in the future.

Premiums will hold steady or rise slightly, but employees no longer will have an option with relatively low deductibles.

FedEx is easing into the change by providing Health Reimbursement Accounts, but the cash won't come close to covering 80-140 percent increases in deductibles.

The company began rolling out information about the changes in July, well in advance of re-enrollment Oct. 15-Nov. 5, to give employees time to adjust.

FedEx currently has one plan that's considered high-deductible and one that isn't.

This new plan offers the best combination of benefits and incentives to address the rapid increase in health care costs, FedEx spokesman Patrick Fitzgerald said.

"Currently, more than 70 percent of large U.S. companies offer consumer-type health care plans, and many have slowed the growth in health care costs while still offering quality coverage and affordable premiums.

Officials dont think the change will harm FedExs reputation for taking good care of employees.

The company will continue to offer a $5-a-month plan for individual employees and coverage to part-timers.

There's this tsunami of change that's going on, that's affecting everybody,said Tim Finnell, a certified health care reform specialist and president of Group Benefits LLC in Memphis.

I would view this by FedEx as being on the leading edge of change and adopting it early.

They don't want to turn people over to the government and the [health care] exchanges.

FedEx's costs for self-insured health care coverage have been rising at two to three times the rate of overall inflation, or by $90 million to $100 million a year, officials said.

Last edited by DLax85; 08-07-2013 at 03:32 PM.
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Old 08-07-2013, 03:36 PM   #2  
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For 1.5 billion why don't we just open a company clinic.
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Old 08-07-2013, 06:15 PM   #3  
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I wouldn't worry because according to our Commander-in-Chief:

"... If you like your health care plan, you'll be able to keep your health care plan, period."

"This law will cut costs and make coverage more affordable for families..."

and

"This legislation will also lower costs for families and for businesses..."
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Old 08-07-2013, 07:43 PM   #4  
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Quote:
Originally Posted by chi05 View Post
I wouldn't worry because according to our Commander-in-Chief:

"... If you like your health care plan, you'll be able to keep your health care plan, period."

"This law will cut costs and make coverage more affordable for families..."

and

"This legislation will also lower costs for families and for businesses..."
Premiums have already increased for some upwards of around 30 % and maybe I must have read it wrong but what kind of healthcare are you getting for $5.00 a month ?
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Old 08-08-2013, 10:32 PM   #5  
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Call me a conspiracy theorist, but I suspect this is the nasty "surprise" awaiting us in CBA negotiations:

"So if you pilots don't agree to PBS in your new CBA, we (the company) have no choice but to jack your employee's share for health benefits 500% a month. So (pun intended) pick your poison, gents & ladies."
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Old 08-09-2013, 04:25 AM   #6  
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Quote:
Originally Posted by Dadof6 View Post
Call me a conspiracy theorist, but I suspect this is the nasty "surprise" awaiting us in CBA negotiations:

"So if you pilots don't agree to PBS in your new CBA, we (the company) have no choice but to jack your employee's share for health benefits 500% a month. So (pun intended) pick your poison, gents & ladies."
....+1

Beat me to it......
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Old 08-09-2013, 04:35 AM   #7  
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No special knowledge of what the company may pursue\not pursue....but, for perspective, just checked out the cost of my previous employer health plan.

For family coverage, would be paying 430$ a month for lesser coverage, no vision\no dental.
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Old 08-09-2013, 05:32 AM   #8  
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Quote:
Originally Posted by Dadof6 View Post
Call me a conspiracy theorist, but I suspect this is the nasty "surprise" awaiting us in CBA negotiations:

"So if you pilots don't agree to PBS in your new CBA, we (the company) have no choice but to jack your employee's share for health benefits 500% a month. So (pun intended) pick your poison, gents & ladies."
Are you seeing a possible change to premiums in another source of information or just stirring the pot on speculation? A higher deductible plan, as mentioned in the article, isn't a change to monthly premiums. Obviously, I'd rather not see any change but if it has to happen, I'd rather pay a higher deductible over a higher premium each month.

Deductibles are a one time charge when someone gets treatment - PBS is forever, month after month after month. IMO, there is no choice - and no need to panic quite yet.
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Old 08-09-2013, 05:56 AM   #9  
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Default Ugh!

And once every other employer imposes these wonderful "changes" into their own employee health plans in order to avoid cadillac plan taxes, etc, people will be practically begging the benevolent government to "help" out. That's how universal, govt health care will eventually happen in a few short years....IMO

Hope our negotiating committee stands strong on this, but you can bet your sweet butt the company will use our health care plan to divide us from the rest of the employees.
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Old 08-09-2013, 08:48 AM   #10  
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It's the free market.

Our health care costs are one-third higher than the average of the other industrial countries.

If we're going to compete, that has to change.

Because of, you know, the free market. That's what we want right?
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