Health Insurance Costs

Over the last 10 years, the cost of health insurance has risen dramatically. In the summer of 2000, the UO and the GTFF reached an agreement where the UO would pay the vast majority of the health insurance costs which had risen to ~$1 million. Today, the health insurance plan costs closer to $5.5 million. The UO has paid for all of the increase over the years. The rates to GTFs for summer coverage and dependents have not increased since the Fall of 2000.

We knew going into bargaining that it was time for GTFs to share in some of the pain of the increasing health care costs. We indicated to the UO that this was our intention going into bargaining. The proposals from both parties have centered on how much of an increase GTFs would see and how it would be calculated.

One of the major hurdles both parties face is that we have to figure out a way to bargain how much each party will pay of an increase when we don't yet know what that increase will be. This makes bargaining health care, understanding what's happening in bargaining, and (believe you me) explaining what is happening with health care bargaining rather complicated.

The framework in which the two parties are bargaining is something like this:

The UO will pay x percentage of the first 10% increase in the cost of health insurance costs and 100% of all costs increases over 10%.

0r put another way:

The current cost of the heath care plan is $5.5 million. If costs go up 10%, then the two parties will need to come up with an additional $550,000 next year to maintain benefits. We are bargaining over how much of that $550,000 each party will contribute. Anything over a 10% increase will automatically be paid by the University.

The UO has proposed that they pay 90% of the first 10% increase, or $495,000 of the $550,000, leaving $55,000 for GTFs to pay.

The GTFF has proposed that the UO pay 95% of the first 10% increase, or $522,500 of the $550,000, leaving $27,500 for GTFs to pay.

Both parties, at this point, want this to be a two year agreement. This means that if costs rise again next year there will be additional costs for GTFs.

While the differences between the proposals may seem small, it is important to keep in mind that we are talking about taking money out of GTF pockets. Any money subtracted from net take home pay is a detriment to our brothers and sisters.