Executive Board Introduction

Local 27 Members;

This letter is to inform you of the perspective of the Local 27 Executive Board regarding the Referendum Vote for the Welfare Trust Health Benefit Plan.

The Welfare Trust is responsible for the implementation and maintenance of this health plan.  The trust will begin setting up this plan as soon as the vote is complete on April 5, 2007 and the health plan will be implemented in January 2008.  A Local 27 Welfare Trust Health Plan may be an improvement over the health care options we have available to us currently.  The Executive Board would like to provide you with our perspective to help you decide what you would like to do for your medical care.

Presently we are part of the Health Care Coalition.  This is an organization of city employees that share in the city's medical care program.  We make up roughly 10 percent of that body.  Currently our agreement with the city covers 7% increase in annual health care premiums.  If it is over 7%, then the cost is shared, with us covering 15% and the city covering the other 85% of the cost.  This is a negotiated benefit.  If we choose to go out on our own, we would receive a monthly allocation from the city which we would spend on our own plan.  A major difference between a Local 27 Welfare Trust Health Plan and our participation in the Health Care Coalition is that if we stay with the Coalition the burden and the risk remain with the city.  However, if we go out on our own, the burden and the risk will lie on our shoulders.  Further, if there is a decrease in health care costs, the city gains from those decreased costs and we do not.  If we start our own plan then potentially we could either save money from decreased health care costs or we could make our benefits even better.

What this is not

Separate the term, "Retirement Medical," from this vote.  Retirement Medical could become feasible down the road, but you should not base your vote solely on your desire for retirement medical coverage.    A Welfare Trust Benefit Plan does not answer the LEOFF II shortfall.  Unfortunate as that may be, it could help as a supplement to retirement but it is not the Holy Grail that we have been searching for.  However, this Welfare Trust Health Benefit Plan will allow us some control over our own medical benefits and allow us to realize and retain any gains from health care costs in the future. 

In conclusion, this plan will be completely dependent on the Welfare Trust Board.  These Local 27 members will be responsible for managing you and your family's medical coverage.  This has both positive and negative ramifications that should influence your decision.  It is imperative that we have a Welfare Trust Board that is knowledgeable as well as dedicated.  We will not be able to run this plan with any sort of success without enthusiastic members on this welfare trust.  The Executive Board cannot take over the duties of the Welfare Trust Board at any time. 

The Local 27 Executive Board urges all members to carefully consider all of the available information before making a decision.  We want all members to make their own decision.  After all, it is ultimately your healthcare. 

Sincerely,

Executive Board