New contract offers health care benefits improvements; Browse FAQ on premium holiday

Feb. 28, 2006 - Union members were pleased that the new contract holds the line on the cost of many health care components and even offers several improvements. “Our share of the health care premium will remain unchanged, as will the costs of generic prescriptions,” said OCSEA President Ronald C. Alexander. “We also negotiated improvements in preventive screenings and full coverage for diabetic supplies.”

Oversight of the employee’s health care benefit is done through a joint labor-management committee and Alexander attributed the gains in this arena to the committee’s good work.

“Our wise stewardship of the health care plan, coupled with tough bargaining with health care providers, has allowed us to forestall many of the health increases being experienced in other sectors,” said Alexander.

He also noted that sound fiscal health of his members’ health care plan would allow a premium “holiday” – a month where no premium is due – in both 2006 and 2007.

Browse the list of Frequently Asked Questions (FAQ) below to learn more about the Premium Holiday recently negotiated by the OCSEA bargaining team.

Q.  Who is getting the health care premium holiday?

Q. How many state employees are in those plans?

Q.  What about the 5% who are enrolled in Paramount, The Health Plan and Qualchoice?

Q. Explain why only plans that are self-funded will give the premium holidays.

Q. Is there any way a Qualchoice, The Health Plan or Paramount enrollee can get a premium holiday?

Q.  Who is getting the health care premium holiday?
A.  Employees enrolled in Ohio Med, UHC and Aetna will get a one month health care premium holiday in the fall of 2006 and the fall of 2007.

Q. How many state employees are in those plans?
A.  95% of employees are in these three plans.

Q.  What about the 5% who are enrolled in Paramount, The Health Plan and Qualchoice?
A.   Those employees will not get the holiday premium, because these plans are fully-ensured products and as such are not part of the Health Benefit Fund. Only plans that are self-insured, which makes them a part of the Health Benefit Fund will give these premium holidays.

Q. Explain why only plans that are self-funded will give the premium holidays.
A.  Ohio Med, UHC and Aetna are self-funded plans. That means that the state takes all the monthly premium payments it makes and state employees makes for these plans and puts them into the Health Benefits Fund. From this fund the state pays the health care claims that state employees and their dependents in these plans have. For a number of reasons the fund balance is too high so the excess is being used to grant the premium holidays. The money in the fund only applies to Ohio Med, UHC and Aetna. Since employees in Paramount, The Health Plan and Qualchoice are not a part of the Health Benefit Fund, they cannot get the premium holiday.

Q. Is there any way a Qualchoice, The Health Plan or Paramount enrollee can get a premium holiday?
A. The only way would be for the employee to switch to Ohio Med, Aetna or UHC during the next open enrollment this spring. Since the first premium holiday will not be paid until the fall of 2006, employees can switch plans during the next open enrollment and enroll in one of the three plans that will provide the premium holiday.

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