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Brown Cafe UPS Forum
UPS Union Issues
Teamcare unsustainable. Hoffa words, not mine.
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<blockquote data-quote="Bagels" data-source="post: 1171234" data-attributes="member: 43436"><p>The value of the health plan listed on your W-2 is the market rate; as UPS is self-insured, it spends less. When you're fully insured you pay a fixed amount to the plan administer, who then covers all contracted amounts. UPS is the plan administer - it pays providers (Aetna, Kaiser, Blue Cross -- there's dozens nationally) to manage the plan, but covers all contracted costs out-of-pocket from a fund it makes a finite contribution to as negotiated with IBT.</p><p></p><p>Example of Fully Insured vs Self Insured:</p><p>- In a fully insured policy, the employer signs a contract with Aetna. After the premium is paid, Aetna pays all claims & costs incurred by the participant -- whether they use the plan or not. This is why the % of people with dental insurance continues to drop at a torrid place -- employers are upset that they're paying significantly more than what's been paid out.</p><p></p><p>- In a self insured policy, the employer pays a few bucks toward Aetna (and other proividers) to manage all claims & costs incurred by the participant, but the actual monies being dispensed comes from the employer. If the employee does not use the insurance, it costs the employer nothing (beyond a small amount for fee management).</p></blockquote><p></p>
[QUOTE="Bagels, post: 1171234, member: 43436"] The value of the health plan listed on your W-2 is the market rate; as UPS is self-insured, it spends less. When you're fully insured you pay a fixed amount to the plan administer, who then covers all contracted amounts. UPS is the plan administer - it pays providers (Aetna, Kaiser, Blue Cross -- there's dozens nationally) to manage the plan, but covers all contracted costs out-of-pocket from a fund it makes a finite contribution to as negotiated with IBT. Example of Fully Insured vs Self Insured: - In a fully insured policy, the employer signs a contract with Aetna. After the premium is paid, Aetna pays all claims & costs incurred by the participant -- whether they use the plan or not. This is why the % of people with dental insurance continues to drop at a torrid place -- employers are upset that they're paying significantly more than what's been paid out. - In a self insured policy, the employer pays a few bucks toward Aetna (and other proividers) to manage all claims & costs incurred by the participant, but the actual monies being dispensed comes from the employer. If the employee does not use the insurance, it costs the employer nothing (beyond a small amount for fee management). [/QUOTE]
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