Boeing's nonunion workers to pay more for health insurance

Seattle Times ^ | September 13, 2010 | Dominic Gates

[djwright]

Albaugh said the health-care law passed earlier this year will add to the company's costs over the next several years. He added that the law "in 2018 could subject Boeing to a substantial tax on health-care plans exceeding a certain threshold."

This is a reference to the so-called "Cadillac Health Plan" excise tax, a provision in the law that was intended to bring down overall heath-care costs by discouraging high-cost plans, and to help fund the health-care overhaul by raising money from the more well-off.

[djwright]

uh-oh Boeing might be on Kathleen Sebelius' naughty list for implying that their healthcare costs are going up as a result of Obamacare.

[chilltherats]

This situation should be ripe for a major lawsuit.

[USNBandit]

A Washington Freeper posted the letter to employees last night.

I think what it was saying was that with the way healthcare costs are expected to increase a pretty run of the mill plan will meet the "cadillac" threshold by 2018. As a price for their support, unions were able to carve out an exemption to the tax.

[PA-RIVER]

Oral arguments were heard today , I think, in Florida.

Bill McCullem? People of the States VS Kenyan King?

[NavyCanDo]

A Washington Freeper posted the letter to employees last night.

That was me and I have it here:

From: Jim Albaugh
Sent: Monday, September 13, 2010 11:59 AM
Subject: Health care changes

With two new airplanes to deliver, derivatives to design, and decisions to make on the 737 and 777 that will impact our company for decades to come, it’s hard to think of a more exciting time to work for Commercial Airplanes. We have the opportunity to define aerospace in this century, just as we have in the last. But we have extraordinary challenges too.

The competitive landscape has changed and we are no longer in a duopoly with Airbus. The Canadian airplane-maker Bombardier already is selling an airplane to compete with the 737; other competitors in Brazil, Japan, Russia and China will be following suit. To regain and maintain our position as the market leader, we must continue to invest in innovation. And we must always look for ways to improve what we do, increase productivity and provide outstanding value to our customers.

The soaring cost of health care, which for decades has exceeded the rate of inflation, has had a profound impact on our company and our ability to offer superior products at competitive prices. The Health Care Reform Law passed earlier this year, while broadening access to health care, could further add to the company’s costs over the next several years – and in 2018, could subject Boeing to a substantial tax on health care plans exceeding a certain threshold.

Today, Boeing pays about 89 percent of total health care costs for employees, far above peer companies such as Lockheed Martin, General Electric and 3M, which pay about 70 percent. The company expects to spend more than $2.4 billion on health care this year, which adds about $2 million to the cost of every airplane we build. Costs could reach $3.1 billion by 2015.

We’ve got to work together to manage these costs. The company will continue to offer excellent health-care benefits and to bear most of the financial burden. But beginning in 2011, nonunion employees will be asked to pay a greater share of their health care costs. Health-care coverage for employees represented by unions is governed by collective bargaining agreements and will be discussed as those contracts are renegotiated. Detailed information about coming changes will be available in October when letters go to the homes of Boeing employees in advance of the 2011 enrollment period.

Change is difficult, but necessary to compete in the ever-changing environment we face. The essence of Boeing is its people – the tens of thousands of workers who put on their badges every morning, come to work and do the amazing things we do. We have an obligation to do what is required, now, to ensure our competiveness and the future of Boeing and its workers for generations to come.

Boeing people know how to build airplanes better than anyone in the world. While our competitors are working on today’s airplane, we are working on the airplanes of the future. Thanks for your continued support as we move into these challenging but exciting times…JIM

[djwright]

It isn't that unions will be exempt it is that the company will have to negotiate any changes to their benefits at the next contract.

These announcements to the non-union folks give a pretty clear indication of the direction the company wants to go.

[chilltherats]

All the more reason to sue. Otherwise, the solution will be to unionize the non-union people, which is one of the goals of the carve-out.

[NavyCanDo]

The Unions IAM and SPEEA aren’t off the hook just yet. All this says is their plans will not change through their existing contract agreement. That is pretty much the boiler plate answer too all Labor unions across the Nation.

I was planning on buying a car in 2011, but until I know how much more I will be paying, all major purchases are off. So it looks like I won't be stimulating the economy anytime soon.

[NavyCanDo]

One area I am sure we will get hit is Boeing Spouses.

Currently our spouses are covered under our plan with zero monthly contributions - if coverage is not provided by their employer. In 2011 I would bet money on it that monthly contributions will be required from then out for both the employee and the spouse, and that amount would increase each year until the Obama plan is available in 2018. Oh, when the letter from Jim came out, I could here collective groans all over my office area, which is 80% Obama voters.

[USNBandit]

I’m a federal employee (boo, hiss) and my plan is a pretty standard 1/3 of total premiums, 20%, and a $5k catostrophic cap. I used to use pre-tax payroll deductions to fund a flexible savings account to pay for my copays and deductibles. Now that account is going to be capped at $2500. Thanks you Mr. President, for raising my taxes. I’m sure that is just the beginning, but I’m already seeing the negative effects of Obamadontcare.

[sionnsar]

Say WA? Evergreen State ping

Quick link: WA State Board

FReepmail sionnsar if you want on or off this ping list.
Ping sionnsar if you see a Washington state related thread.

[NavyCanDo]

“I’m a federal employee (boo, hiss) and my plan is a pretty standard 1/3 of total premiums, 20%, and a $5k catostrophic cap.”

P.S.N.S.Y.?

My brother works there and I often trade jabs with him about our health plan vs. his, and our pay vs. his. The only place he has me beat is overtime, where he can work just about any weekend he wishes. And he doesn't worry about strikes or layoffs, like we do. My Dad got laid off one time at the ship yard in his 30 years and they hired everyone back 24 hours later. One of those political year end things.

Our current health plan cost the company $13,950 for you+spouse+child. We pay zero monthly contributions, but pay the first $600 for the annual deductible, plus a $15 co-pay for each visit. Most things are covered %100 in network.

Pretty sweet plan.

That $13,950 will go up big time and the company will have to pass the cost on. They have no choice.

[USNBandit]

Nice plan. The only people with plans like that must be really evil, rich people, who deserve to be taxed into the poorhouse. :)

Actually, I work for a small law enforcement group within DHS. Most of the comprehensive plans are $340 a month for the employee and a little over $600 for the government share.

[NavyCanDo]

We'll see how the nice the plans are during the November open enrollment. Lot of Obama voters at Boeing are going to be asking themselves what the heck did they do?