Q: I read the Medical Insurance Premiums post on the JNC Blog, but could you elaborate a bit more? I understand that contractually AS must offer us a comparable plan/coverage to the pilots although my concern is not the coverage itself as much as the other items such as deductibles and the amount the Company has contributed to the HSA. Is there any protection or cap on the deductibles they can offer with a plan? Could the Company retract the money they have contributed to the HSA in the past?
A: The deductibles, out-of-pocket maximums, co-insurance, life-time caps, even prescription costs are all detailed in the pilots’ CBA. The Company must offer the same plans and provisions to the Flight Attendant group. The HSA company contributions (currently $1,000 employee only and $2,000 for family) are not contractual for ALPA. In years when management was attempting to increase participation in the high-deductible PPO plan, the contributions were increased.
Important note: The Alaska PPO plans are self-insured, so changing plan administrators can not bring significant change.
The Premera plans (Regular PPO and Consumer Choice PPO) are self-insured by Alaska Airlines and Premera is the administrative services provider. Negotiated plan terms cannot be unilaterally altered by the Company so the health plan provider doesn’t matter as long as the health plan provider can accommodate the services needed to comply with the contract. The Company has changed service providers before (e.g. from Aetna to Premera) and the labor group leaders were invited to participate in the process before a decision was made.
Q: Can we see the plan that the pilots have to research if our current providers, services, etc/, are in the plan?
A: AFA has verified with the ALPA Alaska Benefits representative that the pilots have the exact same network coverage as the FAs. Here is the relevant contractual language for your reference:
ALPA CBA Section 27 Health Insurance >
ALPA Alaska’s contract is amendable April 2020.
Susan Moses says
Hi . . . two questions: is it possible that Alaska can withdraw the “regular PPO insurance plan” at their whim?and could you explain #8 of the pilot insurance plan that is printed in the ALPA Alaska’s Section 27 Health Insurance? Thank you. Susan Moses LAXFA
Jeffrey Peterson (MEC President) says
No, the Company is contractually obligated to offer the “regular PPO insurance plan” pursuant to ALPA Alaska CBA §27.A.1.a.
Could you let us know specifically which #8 you are seeking clarification in regards to the pilot insurance plan: 27.A.8 or 27.B.8?
Caleb Leo says
The TA says that healthcare will be frozen at 2019 rates. Do we know what these rates are? If the TA passes, is there a limit to how high the company can raise the 2019 rates?
Jeffrey Peterson (MEC President) says
The 2019 insurance rates have yet to be determined. However, there is language in the JCBA which limits how much the 2019 rates may change from the 2018 rates. The maximum may be a 15% increase from the 2018 rates. These protections can be found in Section 23.A of the JCBA.