1000% Increase In Retiree Health Care Cost?!?!?!?

[ddomino]

I found a copy of this letter on the tdu.org TDU=Teamsters for a Democratic Union


https://web.archive.org/web/2013012...retiree_healthcare_plan_increase_Dec-2012.pdf


The reason for the increase is because UPS has a ceiling of $6250.00 per year that they pay towards a retiree benefit package. Their claim is that it now exceeds that ceiling by 12 times the new monthly charges for each coverage.

 

[cheddarhead]

I received the letter 12-31-2012-------------Happy New Year! I've also heard from two sources that a division manager, whom is generally well liked, that this letter was sent to us in Local 710 by mistake. I wouldn't take that to the bank though.

 

[Catatonic]

Their claim is that it now exceeds that ceiling by 12 times the new monthly charges for each coverage.

Do math much.
Perhaps you can try again.

 

[kingOFchester]

Do math much.
Perhaps you can try again.

He is using UPS math. If 3 drivers can deliver 375 stops, then 2 drivers should be able to do 374.9 stops.

 

[moreluck]

"While the most sweeping provisions of the health care overhaul have not yet gone into effect, plenty of Americans will still be paying higher insurance premiums this year -- as insurance companies try to preemptively cover the cost of a tax increase included in President Obama's Affordable Care Act."

Read more: Premiums set to rise this year in run-up to ObamaCare tax on insurance industry | Fox News

 

[kazranch]

Yes I got the letter also, the bad part is retirees do not get raises!!! when I retired I was told our healthcare would be $50.00 a month. Im not happy at all!!! I can understand if I was a new retiree, but we should be grandfathered in at $50.00 a month. I just wonder how much profit has UPS made last year!! I gave 27yrs of service to the company working 50-60 hours weekly, I didnt have a life, and this is what we get. I sure hope that alot of retirees have made phone calls to speak their piece of mind.

 

[beentheredonethat]

Yes I got the letter also, the bad part is retirees do not get raises!!! when I retired I was told our healthcare would be $50.00 a month. Im not happy at all!!! I can understand if I was a new retiree, but we should be grandfathered in at $50.00 a month. I just wonder how much profit has UPS made last year!! I gave 27yrs of service to the company working 50-60 hours weekly, I didnt have a life, and this is what we get. I sure hope that alot of retirees have made phone calls to speak their piece of mind.

Who told you $50/month?

Did they say it would be 50/month forever?
Did you get anything in writing regarding $50/month?



Did you or they read the contract to see how healthcare in retirement would be covered?

I don't get how people retire and not do tons of research on the subject and rely on "so and so told me"..

 

[kazranch]

every month for the last 4 yrs I have $50 auto deduct out of my checking account, which is for health care, now effective Aug 1 they want to raise it, gee imagine that, aug 1 is when the new contract comes up. Im sure theres alot of pissed off retirees.

 

[beentheredonethat]

every month for the last 4 yrs I have $50 auto deduct out of my checking account, which is for health care, now effective Aug 1 they want to raise it, gee imagine that, aug 1 is when the new contract comes up. Im sure theres alot of pissed off retirees.

None of us are happy that health care costs are going up. I'm not happy I pay 650/month between my copay and my HCSA for my health care for a family. I've been paying way more for health care then you for years and I'm a current employee.

I'm doing my Taxes now, and my w2 shows that UPS paid $15,832 for my HW, not even counting what I pay for health care of $650/month. That's my 7800 plus the $15,832 UPS paid for me and thats a total $23,632 for the cost of my health care costs. That was last year. You paid 50/month or $600 total. You should be happy how low it was for as long as it was.

However, going back to what you first said.. You said you were promised $50/month for HW. Can you answer the questions I asked? Who said it, do you have it in writing.

One last thing, the HW costs etc are negotiated in the contract. Just like anything there are dates in the contract for start\end dates etc. I see the changes happening for HW making sense it occurs on a new contract ratification date.

If the union does negotiate a lower cost for you, that means UPS will pay more then what is currently being planned, which means somewhere that money has to be made up. Lower raises, less HW and pension for current teamsters, possibly a split rate for new teamsters. It's got to come from somewhere.

 

[oldngray]

I find it very odd that beenthere has all of these numbers that nobody else can see. He insists "everyone" was sent those booklets but apparently he was one of the lucky few who got it. And I am sure we all expected the rates to go up over time but of course its the timing of the huge increase that raises flags. What was the cost per person last year or the year before? Was it over $6250 per person? Possibly but we are not given that information. And why did rates not go up previously? Could the rates increasing the day the current contract ends be a coincidence? And the extra costs due to Obamacare are very possibly what tripped the much higher costs. What everyone is complaining about is we are NOT given any actual costs or explanations and most people feel we are owed at least that much. And when I retired I just got a letter telling me I would need to pay $50 per month to continue current coverage. No explanations beyond that or any booklet explaining details or options to choose a different plan. (the fine print DID say that not all details were explained there. I guess that was the information I was supposed to get. And I saved everything I got in mail and went through it and nope, never got anything with details).

 

[mg5]

Just looks like many versions here. Thought I would say that some districts benefits are not Union benefits but UPS benefits. This makes for a large difference of how much you pay weekly and co-pays or pay nothing at all for your Benefits. It really is a major difference. Same goes for what benefits the retiree has from one of these Districts. Costs, co-pays, prescriptions Etc.

Management benefits while working and retired are way different since management has been paying monthly and large co-pays for years. Has been very costly for them.

So when you see what others pay it may help to know if it is a Union or Company Benefit plan. Just my thoughts.

 

[kumet]

.I want to raise the question re. the fact that our retiree, grandfathered insurance plan does not give us certain rights under the health reform act,patient protection and affordable care act .specifically the $500,000 cap on health expenses and dependent care coverage

 

[Catatonic]

.I want to raise the question re. the fact that our retiree, grandfathered insurance plan does not give us certain rights under the health reform act,patient protection and affordable care act .specifically the $500,000 cap on health expenses and dependent care coverage

OK ... What's the question?

 

[kumet]

what is it about our "plan" that we don't get the same privileges mandated to protect everyone else . That's the question.

 

[tominky]

The biggest handicap for us retirees is we have no voice! All we can do is bitch and discuss issues with like minded people on this great web site! I hope our union does not forget us the people who helped to build UPS to be the great company that it is today.

 

[detailkings]

I spoke with my local union #631 here in Las Vegas. They basically said that it was sent out because yes it is indeed a contract year. Whether or not they are going to sell the out retiree's on this one remains to be seen. As is all negotiations, they use everything they can as a bargaining chip, including this. I suggest you do as I did and remind your representatives that they one day will be retiring as well. It would be in their best interest to protect their retirement as well.

 

[Inthegame]

I find it very odd that beenthere has all of these numbers that nobody else can see. He insists "everyone" was sent those booklets but apparently he was one of the lucky few who got it. And I am sure we all expected the rates to go up over time but of course its the timing of the huge increase that raises flags. What was the cost per person last year or the year before? Was it over $6250 per person? Possibly but we are not given that information. And why did rates not go up previously? Could the rates increasing the day the current contract ends be a coincidence? And the extra costs due to Obamacare are very possibly what tripped the much higher costs. What everyone is complaining about is we are NOT given any actual costs or explanations and most people feel we are owed at least that much. And when I retired I just got a letter telling me I would need to pay $50 per month to continue current coverage. No explanations beyond that or any booklet explaining details or options to choose a different plan. (the fine print DID say that not all details were explained there. I guess that was the information I was supposed to get. And I saved everything I got in mail and went through it and nope, never got anything with details).

Unless an actuary or trustee of the UPS plan starts posting, it's speculation as far as costs go. But clearly the annual average retiree costs far exceed $6250. In most plans, retirees have the highest utilization rates and UPS is no exception, most likely higher utilization than other plans as many retirees are "worn out" and in need of fixin'. But UPS has carried these costs as long as they have because the Teamsters have refused increases. Of course this is a negotiation ploy to show the Teamsters how serious the issue is to UPS but these rates are going up. Ask your friends or neighbors what they pay. Even at the rates in the letter, UPS will still be shouldering 2/3 of the actual costs. If the Teamsters get this reduced by 1/2 it'll be a great deal.

 

[kumet]

Unless an actuary or trustee of the UPS plan starts posting, it's speculation as far as costs go. But clearly the annual average retiree costs far exceed $6250. In most plans, retirees have the highest utilization rates and UPS is no exception, most likely higher utilization than other plans as many retirees are "worn out" and in need of fixin'. But UPS has carried these costs as long as they have because the Teamsters have refused increases. Of course this is a negotiation ploy to show the Teamsters how serious the issue is to UPS but these rates are going up. Ask your friends or neighbors what they pay. Even at the rates in the letter, UPS will still be shouldering 2/3 of the actual costs. If the Teamsters get this reduced by 1/2 it'll be a great deal.

profits are up expenses will go up also.

 

[island1fox]

Kumet,

Retiree plans are not covered under Obama care--another "dispensation" Hence the cap and will not cover children till 26.

 

[beentheredonethat]

I find it very odd that beenthere has all of these numbers that nobody else can see. He insists "everyone" was sent those booklets but apparently he was one of the lucky few who got it. And I am sure we all expected the rates to go up over time but of course its the timing of the huge increase that raises flags. What was the cost per person last year or the year before? Was it over $6250 per person? Possibly but we are not given that information. And why did rates not go up previously? Could the rates increasing the day the current contract ends be a coincidence? And the extra costs due to Obamacare are very possibly what tripped the much higher costs. What everyone is complaining about is we are NOT given any actual costs or explanations and most people feel we are owed at least that much. And when I retired I just got a letter telling me I would need to pay $50 per month to continue current coverage. No explanations beyond that or any booklet explaining details or options to choose a different plan. (the fine print DID say that not all details were explained there. I guess that was the information I was supposed to get. And I saved everything I got in mail and went through it and nope, never got anything with details).

i never said I got a booklet.. I'm in mgmt and still an active employee, so I wouldn't get one. However, my two points are that others here had mentioned they had gotten the information when they retired and that the details are in the contract itself. Which everyone has or can get. The details being how the costs are allocated.