The health plan serving the 300,000-member American Postal Workers Union is offering premium reductions to entice employee members to enroll in its consumer-driven health plan.
The reduction is stipulated in the collective bargaining agreement that APWU members ratified earlier in the year. The agreement limits the amount that active postal employees will pay in premium costs when they enroll in the consumer-driven option for 2008.
Employees will be making coverage selections beginning Nov. 12, and they have about four weeks to make coverage choices.
APWU members who are active employees will pay $7.77 biweekly for individual coverage, down $10.63 (57.7 percent) from the biweekly payment for 2007. Family coverage in 2008 will cost $17.48 biweekly, a decline of $23.92, down 57.7 percent from last year's rate.
Under the collective bargaining agreement, the U.S. Postal Service will pay 95 percent of the premium cost for workers that enroll in the consumer-driven option, up from 89 percent in 2007.
Under the consumer-driven plan, members use funds from a Personal Care Account for care, up to $1,200 for an individual or $2,400 for a family. Those covered by the plan then are responsible for their next care expenditures – the next $600 for an individual or $1,200 for a family. Then, traditional coverage takes over, with beneficiaries paying co-payments for care.
The consumer-driven plan is offered by the American Postal Workers Union Health Plan, a department of the union, and is administered by Definity Health.
"This is great news for APWU members," said William Burrus, the union's president. "Our members can give themselves a nice raise by switching to - or staying in - the consumer-driven health plan. Union members who switch to the consumer-driven plan from costlier health plans will realize even greater savings."