September 11, 2006
COMPANY CONSIDERS BLUE CROSS
AS AN OPTION FOR HEALTH CARE
Time Inc. officials met recently with the Guild to consult on changes in benefits for 2007. The company is obligated by our Collective Bargaining Agreement to consult with the union before making any changes in benefits. The Guild’s talks with the company are not negotiations. The union has no veto power; however, management is bound to give careful consideration to the union’s concerns.
A few weeks ago, the Guild distributed an e-mail to the staff questioning employees regarding their feelings about their health insurance, pro or con, and asking them to list any special issues or concerns. A number of you took the time to send an answer, and the information you gave us has been invaluable in our benefits discussions. Thanks to each of you. Having that specific information on what you like about your health insurance plan, and on what you don’t like, was terrific.
The union told management about your concerns, and the impression we received was that management is concerned about many of the same issues. We hope that our talks will continue to be constructive.
A number of improvements that management is looking at were mentioned, and the company did not propose any reduction or elimination of benefits or any increase in employees’ premiums, which is good news in this era of rising medical costs.
Stressing “absolutely nothing is final,” management officials told the Guild that they’re seriously considering replacing the Oxford health-care plan with a comparable Blue Cross and Blue Shield plan as an option for 2007.
Since Oxford was acquired by United HealthCare, which is the other major health-care option available to employees, and which will continue to be offered, “the service Oxford provides to participants is not as good as it once was,” Time Inc. officials noted. “We’re concerned about the state of Oxford and how long it’s going to be around,” one Time Inc. spokesman said.
The company said it is strongly considering the Blue Cross/Blue Shield network because it is the largest in the nation, with 88% of doctors enrolled and 99% of hospitals. The Blue Cross plan that management is considering is very similar to the Oxford plan, is superior in some respects, but comes with slightly higher co-pays in a few areas. One of the major advantages is that Blue Cross does not require the referrals that Oxford demands.
Under the Blue Cross plan, there would be a $15 co-pay for an adult’s physical examination, routine pediatric care, and routine gynecological care. There currently is no charge for these services in-network under Oxford. The cost of an out-of-network adult’s physical examination, however, which is not covered at all by Oxford, would be 70%-paid by Blue Cross. The same is true of out-of-network gynecological care.
Regarding in-network outpatient care, the Blue Cross plan would include a $25 co-pay for a specialist office visit, while the current Oxford plan has a $15 co-pay. For infertility treatment, the cost of an office visit would also rise to $25 from $15. Out-of-network infertility treatment would be covered 70%.
Company officials said it has no plans to change the formula for determining the employee contributions to the cost of premiums.
Time Inc. is also seeking an improvement in the prescription drug plan, which is administered by Medco. The new plan would cover 60% of the cost of drugs purchased at a non-participating pharmacy. Currently, they are not covered at all.
At this time, employees should not ask Time Inc. Human Resources or Benefits representatives about the company’s plans for next year, since they have not been finalized. But if you want to know more about plans, the plan websites may be helpful. The company is expecting to set a benefits open-enrollment period to begin very late in October or early in November. A “help desk” will be established by the company about that time to respond to any questions about the options.
The Guild will be providing additional information as it becomes available.
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09/11/06