WHEREAS:

The cost of health care coverage continues to escalate at rates far in excess of the Consumer Price Index. Even in some jurisdictions that have redesigned plan provisions in efforts to contain expenses, plan costs have increased substantially. Some of the increases are related to factors beyond the control of the employees and employers such as advanced medical technology, the aging of the workforce, and the increased number of tests ordered by physicians wary of malpractice suits; and

WHEREAS:

The cost of health plan coverage continues to be a critical factor in AFSCME contract negotiations. Annual costs of health care benefits now exceed an average of $2,000 per employee, and the expense for many AFSCME employers is far in excess of $2,000. In some jurisdictions the cost is of health care as a percent of payroll exceeds the cost of pension coverage. Wage settlements often depend on the joint efforts of the union and employer to modify health plans to incorporate health care cost-containment techniques. Proposals to increase deductible and employee copayments may place an unfair burden on many AFSCME members; and

WHEREAS:

AFSCME labor-management committees on health care have assumed active roles in reviewing plan design and utilization; monitoring plan administration; developing education materials; implementing cost-containment provisions; and approving health maintenance organizations to be offered to members. Communication with plan carriers is important to make carriers aware that they must be responsive to the concerns of the union as well as to those of the employer; and

WHEREAS:

State legislative actions including hospital all-payer rate setting and requirements for disclosure of price and quality information have proven effective in controlling health care costs and improving health services for all Americans; and

WHEREAS:

Adequate health care coverage at a reasonable cost is a necessary protection for all AFSCME members and their families.

THEREFORE BE IT RESOLVED:

That AFSCME councils and locals continue health benefit plan cost-containment efforts, looking to areas that may not have been previously addressed. Cost-containment proposals should focus on areas of inappropriate use of medical services — both inpatient and outpatient — rather than shifting costs to the employees, and must not compromise the quality or accessibility of medical care. Plan design changes that shift costs to the employees are not acceptable alternatives to cost-containment; and

BE IT FURTHER RESOLVED:

AFSCME councils and locals continue to take an active role in the management of health benefit plans by developing new labor-management committees for health care, and where appropriate, expanding the focus and involvement of established committees; and

BE IT FURTHER RESOLVED:

The International Union shall continue to assist councils and locals in their support of state legislative initiatives to control health costs; and

BE IT FURTHER RESOLVED:

That the International Union assist councils and locals in their efforts to control health care costs in order to maintain affordable health coverage for all AFSCME members.

SUBMITTED BY:

Pete Benner, Delegate
AFSCME Council 6, AFL-CIO