Tom Searles says in part...

Michael Hohmann wrote, "They are in for sticker shock when
they find what types of family coverage are available for $400-$500 per
month; what deductible and co-pays are required, etc."

[TMS] Michael was a little low in his estimate. Here are the healthcare
costs as they appear on the union's web site. It's not entirely clear, but I
believe this is for 2 months of coverage. Ouch. I hope the striking workers
are aware of how much this could cost them. It does not include dental
coverage.
http://www.atu1005.com/Contract%20Updates.htm
"If a strike was to go beyond the first month, under Cobra Law, you would be
responsible for the entire premium amount plus 2%.  *Family coverage is
$1,131.10 plus 2% for a total of $1153.72. *Single coverage is $452.43 plus
2% for a total of $461.47."
~~~~~~~~
[MH]  First- I believe the costs Tom quotes above are for a one month
period, yes, over a thousand dollars a month on a group plan... a real
Cadillac of coverage to be sure!

Evidently I wasn't clear in my earlier statement.  I believe the $400-$500
amount I referenced, is close to what is being proposed to the union as
their monthly cost for family coverage under the settlement provisions-- in
the ballpark anyway. And, there are options being offered that would reduce
those monthly fixed costs in exchange for the employee assuming more risk
(or potential upside costs, in terms of deductibles and co-pays).

Contrast the coverage available to employees from Metro Transit at that
settlement cost (plus the employer's contribution), with what would be
available to the employee for the same price ($400-$500/mo) in the open
market, with no employer contribution- no group plan.  The value of the
employer contribution remains significant even under terms of settlement--
in terms of the family group coverage received.  As far as dental insurance,
the cost to transit workers to maintain family dental coverage under COBRA
(existing coverage) is $85 per month; and, I'm assuming that's for excellent
coverage in terms deductibles and co-pays.  Dental insurance gets very
expensive very quickly without a good group plan.

Granted, it will cost the transit employee more out of pocket under terms of
settlement -- but, welcome to the real world; the world outside of union
contracts.  That's my point.  What's fair and where is the parity with what
the majority of workers have-- in terms of coverage; monthly fixed cost
premiums, deductibles and co-pays?  It should not be the role of the
taxpayer to subsidize 'excessive benefit levels' for a select few public
employees.

As I said before, the outrageous cost of healthcare is an issue that
transcends individual employment contracts, and it should be addressed at
the appropriate state/federal level if fairness and parity are to be
achieved.


Michael Hohmann
Linden Hills

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