Group Health members :Information on retiree medical benefits

In October 2008 we voted to approve a new contract that included a change to the retiree medical benefit.  Unfortunately, we now have a serious dispute with Group Health about this benefit. 

Why a payout of our retiree medical benefits?
Long-time employees remember the promise of lifetime medical coverage when we began working at Group Health twenty or thirty years ago.  But this “lifetime” benefit has eroded away since the early 1990s, when what had been free, unlimited coverage turned into a $250/month subsidy toward the cost of coverage. Healthcare costs have increased substantially since then and now our subsidy covers only a small fraction of the medical costs for retirees younger than 65. The cost of our medical benefit with the subsidy is higher than if we purchased individual coverage from Group Health, which has resulted in virtually no retirees younger than 65 signing up for Group Health retiree insurance.  

This is why our membership voted in 2008 for Group Health to “pay out” the value of our retiree coverage from the time we are older than 65 (the part actually used by retirees) in return for an end to the subsidy on our retiree insurance. The amount of money to be deposited in our 403(b) tax-sheltered accounts is calculated to be equal to the value of the current Group Health Medicare supplement plan once we turn 65.  See the enclosed list of payout charts that show the exact payout people get based on our age, years of service, and retirement eligibility based on the “55 and 12” (for pre-1993 hires) and “rule of 80” (for post-1993 hires) criteria.  

What is the current dispute?
We believe the payout should reflect our age and years of service as of December 31, 2009, as stated on the charts.  But the letters Group Health sent us in December state the value of our payout based on our age and years of service as of October 23, 2008.  This elimination of 14 months results in a smaller payout—a much smaller payout for some.  Group Health is justifying this reduction by arguing that the total payout would add up to more than the total cost we agreed to in our contract.  We believe that Group Health has the obligation to pay us the full amount based on the charts in our contract.

What are we doing?
Union members are signing on to a group grievance about Group Health's violation of the payout charts in our contract.

You can view the payout chart here.


In addition, we are filing an Unfair Labor Practice charge with the National Labor Relations Board.  We have the best chance of winning the best outcome for all of us by working together, and it is important for us to send a strong message to Group Health to resolve this issue.  Please sign the web form by March 12. Contact the delegate in your workplace or call a union organizer at 425-917-1199 if you have additional questions.


You can sign on to the grievance by filling out this form.