Greetings,
Below, please find a new update from National Writers Union, President, Jonathan Tasini, on the union's group health insurance that was circulated to NWU members yesterday afternoon. Jonathan has asked that I forward this update to all of you to ensure that your organizations and members are kept appraised of all the latest developments concerning the NWU's Associate Benefits.
This update includes information on an important new development in the on-going Employers Mutual case, as well as further information on the NWU's new group insurance plan with UniCare. Please feel free to contact if me if you have any questions or if I can be of any further assistance.
Sincerely,
Chris Zic
Executive Director
National Writers Union, UAW Local 1981
_____________________________________
Dear Member,
This message contains a number of updates and clarifications
concerning National Writers Union group health insurance. The first update pertains to a recent development in the Employers Mutual court case that should be of interest to members who had participated in that plan. The other clarifications address common questions raised by members about the new UniCare plan following last week's email announcement.
This information should help members make informed decisions about their insurance options. Once again, we're pleased that we were able to land a plan in this difficult health care market. It's part of our ongoing commitment to working hard every day to serve our members.
In Solidarity,
Jonathan Tasini
President
National Writers Union
EMPLOYERS MUTUAL UPDATE
PERMANENT PROTECTION FOR MEMBERS
In March, the NWU obtained a temporary injunction barring health care providers from holding NWU members personally responsible for unpaid bills or taking collections actions against them while the Employers Mutual case moved through the courts. We are pleased to announce that the court has ruled that the injunction will become permanent after the case is finished. We'd like to thank attorney Lowell Peterson, who worked diligently with the court to bring about this permanent protection for NWU members.
Within the next week, we plan to distribute a new letter to all members who were affected by the Employers Mutual situation. This letter will specifically reference the court's new ruling, and it can be presented to any health care provider attempting to pursue collections action against an NWU member. As the letter will specify, providers who choose to ignore this injunction will be acting in contempt of court.
FURTHER INFORMATION REGARDING UNICARE CONTRACT STATUS
Last week's message stated that the NWU is "in the process of contracting a new group health insurance policy". Some members have asked us to clarify this statement. First, UniCare submitted a proposal for a group health plan to the National Writers Union. Then, the NWU formally submitted an application for coverage to UniCare as per their proposal. While the final contract has not yet been signed, pending there view of our attorneys, we expect that this plan will indeed be in effect by July 1, 2002. To ensure that our members are covered as of that date, enrollment has already begun. Our consultants advise use that it is not unusual in the health insurance industry to begin enrolling members into a plan before the final contract is signed.
DEADLINE FOR TRANSFER TO UNICARE
CSS has requested that NWU members return their insurance election forms advising CSS of their decision about the UniCare plan by June 15, 2002. This deadline reflects CCS's desire to ensure that as many members as possible have enrollment materials and insurance ID cards by the 7/1/02 effective date of the plan. However, July 30, 2002 is actually the last day to enroll in the UniCare plan and benefit from the pre-existing conditions and HIPAA waivers UniCare is extending to NWU members who participated in the Employers Mutual and/or Aetna plans within the past year. Members who enroll up to July 30 and pay for July will be assigned a 7/1/02 enrollment date. After July 30, members who enroll will be subject to the pre-existing conditions provision of the plan. We recognize that a decision of this magnitude requires research and reflection. However, we encourage members to move forward as quickly as possible, so as to avoid the logistical difficulties that often arise when many members wait until the last minute.
NEW YORK MEMBERS
UniCare WILL NOT be available to New York state residents. NWU members in New York will continue to be covered by Aetna.
DOMESTIC PARTNER COVERAGE
As in the past, NWU's new health plan will continue to recognize domestic partnerships
NWU Health Plan Issues
Aetna Health Plan Terminated
May 3, 2002
Dear Member,
We have disappointing news to report regarding Aetna health insurance coverage for NWU members. As the Health Care Solutions Committee reported last week, CSS has been in active negotiations with Aetna for the past several weeks.
Yesterday, the union learned that Aetna is no longer willing to insure NWU members as a group. Except in the state of New York, Aetna now considers us "sole proprietors" who must seek individual health insurance. While those currently enrolled in Aetna will be offered the opportunity to convert their group policy to individual coverage, on September 1, 2002, group rates will vanish, and premiums for individual policies could be enormous.
Here are the details:
Although our current renewal date is June 1, Aetna is offering a 90-day grace period, until September 1, 2002, during which our group plan will continue in all states where it is now available. During this period, all NWU Aetna subscribers outside of New York will receive a 30 percent rate increase. In New York, because state law mandates that Aetna continue to treat NWU as a group, members will continue to have access to group insurance and group rates after September 1, 2002. However, New York premiums will go up by 25-28 percent as of June 1. On September 1, NWU's Aetna group coverage will terminate in all states, except New York. As required by law, Aetna will offer enrolled members a "group conversion" option the opportunity to convert to individual policies.
Aetna WILL NOT turn down those NWU members currently enrolled in the group plan who apply for individual coverage. However, because individual premiums are based on age, gender, geographic location and health history, rates are likely to be very costly for many of our members.
Note that once Aetna group insurance terminates in September, NWU's dental and vision coverage may cease as well. This is because Guardian, our dental and vision carrier, has been willing to provide these benefits only if they are tied to group health insurance. We have asked CSS, the administrator of NWU health benefits, to investigate whether there is any strategy through which we can convince Guardian to retain us. The Health Plan Solutions Committee will also pose this question to its newly hired health insurance consultant. When there is news about this issue, we will be back in touch.
This is not what we'd hoped to report, but it is not altogether unexpected, considering the dreadful state of the health insurance industry and its hostility toward self-employed individuals.
What's next?
1.)You may wish to begin exploring your health insurance options now. Don't wait until July or August. It can take up to six weeks to complete the underwriting/enrollment process. In past updates, the national office and the Health Care Solutions Committee have provided information about various insurance alternatives. You can review past updates in the Health Plan Issues section of www.nwu.org {or call at (212) 254-0279}. In addition, the committee is preparing a new update on this subject and will send it out as soon as possible.
2.) We are continuing to seek new proposals for replacement insurance, and the 90-day grace period from Aetna will provide us with some additional time to attempt to find an insurer willing to quote group rates. Several proposals are pending, but none of them have progressed far enough to be reported here. We — the national office, the Health Care Solutions Committee and CSS — ask for your continued patience. As soon as we know anything concrete, we will report back to you. However, we must caution you that it's not certain we will ever receive a viable proposal, nor can we estimate the timing of such a proposal. We have thus far been unable to find a major national carrier willing to take us on, and several of the proposals from secondary companies have suggested plans structured similar to Employers Mutual, so we are being very thorough about researching alternatives.
3.)Legislative action could provide a long-term solution. As noted above, New York already has legislation that prevented Aetna from rejecting our group status. The Health Care Solutions Committee has volunteered to explore legislative options. This is an arduous task, because insurance is generally regulated on a state-by-state basis, so each state would need to adopt appropriate law. However, there is significant historical precedent for the development of model legislation, which could be marketed nationwide in collaboration with other groups representing self-employed individuals. While this approach will not provide short-term relief, it's clear that without some mandated change in the business climate, NWU members and other self-employed individuals will always be at risk when it comes to insurance. Note that implementing this strategy will require the effort of more than a few dedicated individuals: If it makes good strategic sense to pursue legislative remedies, we'll need to call upon all our members to pitch in and help.
Again, we share your disappointment in the outcome of our discussions with Aetna. Please be assured that we continue to pursue a more satisfactory solution that will meet the health insurance needs of all our members, and we ask for your support and patience as we move forward.
As we said earlier, this outcome is directly tied to the atrocious reality facing freelancers in the health care market, as well as other aspects of the economy. The only way we can gain fair health care for freelancers and decent contracts from our employers is to continue to build a strong union. If we have a strong voice in the legislative arena and at the negotiating table, we can build a better future for writers. We hope you will continue to work with us and encourage your colleagues to join our efforts.
In Solidarity,
Jonathan Tasini
President, National Writers Union
*For more information on this situation, please call the NWU at (212) 254-0279.
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