BNA - Guild News

Jan. 17 , 2003

Health Care: Guild Makes a Fair Counter

The Guild reluctantly made a health care counterproposal on January 14 that included increases in health care co-payments designed to encourage purchase of drugs through mail order, choose generics when available, and use network medical and dental providers. These three elements present the best opportunities for cost containment in the health plan, and do not curtail any benefits.

The Guild’s goal is to maintain a quality health care plan that is affordable both to employees and the company. That has become more difficult as health care costs have increased dramatically over the last few years, even though BNA employees continue to use more efficient managed care at levels higher than the national average.

In 2001, health care costs for BNA went up 12.6% (over $1.3 million), and 2002 numbers—when finally tallied— are expected to be even higher. The biggest cause of these increases are the costs of the dental plan and prescription drugs. According to an article in the December American Bar Association Journal, the pharmaceutical industry sold $154 billion in prescription drugs in the United States in 2001, up from $78.9 billion in 1997. A lot of that increase is due to rising prices and increased use of name brand drugs.

The Guild looks at health care bargaining against the backdrop of BNA’s wise decision not to propose health care premiums, though they reserved the right to change their minds if there are problems in bargaining. Studies show that 70% to 80% of employers require premium contributions for single coverage of at least $50 per month, and over 90% of employers require premiums for dependent coverage, of at least $190 per month. Both BNA’s and the Guild’s proposals are much less onerous in comparison. BNA’s corporate objectives, which have long set it apart from other companies, call for “maintaining a superior program of employee benefits”.

BNA has proposed premiums in the past and no one should believe that they would not have imposed them here years ago if there was no union to protect employees. Union dues are a bargain compared to the over $2000 annually in premiums people could be paying for health care. Since the early 90’s when the Guild last successfully blocked BNA proposals for employee premiums, BNA employees have saved tens of thousands of dollars. Hopefully, those of you who have not yet joined the Guild will think about that the next time someone asks you to support the Guild.

Key elements of the Guild’s counter proposal included:

• all changes will be made effective January 1, 2004.

• a cap on drug costs for lower-paid employees.

• On dental care, we are not only agreeing with management that the co-payment for non-network care should go from 20% to 25%, but we are proposing that it be cut from 20% to 15% for network care. We believe we will better be able to attract people into the dental network if it becomes more attractive financially, while non-network care becomes less attractive.

• Rejection of BNA’s proposal that routine dental exams should no longer be free if provided by an out of network dentist.

BNA made a counterproposal on January 16 which moved toward the Guild proposal on a number of co-payments and deductibles. BNA agreed to the Guild’s proposal to make all changes effective January 1, 2004, and agreed to continue to cover routine dental exams even if out of network. But BNA rejected a cap on drug costs for lower paid employees, and rejected a reduction of the in-network dental co-payment to 15%.

Bargaining resumes on Tuesday January 21 at 5:00 p.m.

-- Your Bargaining Committee

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