Sent: Monday, August 15, 2016 20:26
To: HFS.SendAll
Subject: Health Benefits Update from John Terranova
Dear Colleagues,
Many of you have questions about the State’s health insurance proposal. That is understandable, as health insurance is a very important topic that affects us all. Indeed, like you, I participate in the very same health insurance program, so frequently have many of the same questions. Would I be able to continue paying the same premium I am paying now? How much would it cost to obtain basic services like immunizations and vaccines? What would be the most that I have to pay out of pocket in any given year?
To answer these and other questions, I sat down with a knowledgeable colleague, Teresa Flesch, who serves as the Assistant Deputy Director in the CMS Bureau of Benefits. Teresa is a terrific source of knowledge about health insurance benefits, and what resulted from my conversation with her is a very informative and short video that you can access by clicking here. Teresa and I believe you will find the video useful and recommend that you find five minutes to watch it.
As always, if you have more questions, please do not hesitate to reach out to me and my colleagues in CMS Labor Relations, or submit questions through the FAQ website.
Yours,
JT
John Terranova
Deputy Director
Office of Labor Relations
Department of Central Management Services
* I asked AFSCME for a response…
Rich,
This latest video from the Rauner Administration is riddled with misstatements, omissions and outright falsehoods—not unlike all of its communications related to the state contract.
To be clear, despite our repeated information requests across the bargaining table dating back nearly a year, the Rauner Administration has refused to provide AFSCME with its proposed health plan summaries containing the level of detail discussed in this video. As a result we cannot independently analyze the validity of some of these claims.
That said, under the terms the Rauner Administration had on the table when it walked away from negotiations back in January, for an employee to keep their current plan—same doctors, same coverage and same co-pays and other out-of-pocket costs—premiums would double in the first year the plan is implemented, and could continue to go up another 10% per year after that.
Those premium increases would cost the average worker some $10,000 over the term of the contract. Since Rauner is also demanding a four-year wage freeze, that’s effectively a $10,000 pay cut for the typical employee.
The Administration claims it would offer a choice of other plans, including ones at current premium levels. But employees would likely pay sharply higher co-pays, deductibles and other out-of-pocket costs under those plans. In essence, here the Rauner Administration is telling workers who can’t afford higher premiums to simply hope they don’t get sick.
What the Rauner Administration never admits is that its overall demand is for workers to pay 67% more of the cost of health care in the aggregate. Their vaunted “choice” for employees is whether to bear those vastly higher costs in the form of premiums or co-pays, deductibles and other out-of-pocket costs.
The AFSCME bargaining committee has made clear its willingness to moderate increases in employee health costs. But there is no justification for the radical cost-shifting demanded by the Rauner Administration. The overall value of the state health plan is now about average among the states. The Rauner Administration’s demands would drop Illinois to the bottom five worst state health plans in the nation.
Just two examples of this video’s misleading claims and omissions:
* The section from 1:23-1:40 discusses certain plan options that may offer the same coverage at the same premiums as today—but doesn’t disclose until a later section the vastly higher co-pays, deductibles and other out-of-pocket costs that would be imposed under these options.
* The section beginning at 1:55 discusses preventive care, noting that “many of the most common services would be free”. The implication is that the Rauner Administration is somehow due credit for this, or that it’s offering free services out of kindness. The reality is that every health plan is required by federal law—President Obama’s Affordable Care Act—to provide these preventive services free of charge.
It’s also worth noting that it’s not only the 38,000 AFSCME-represented state employees who would be affected by the Rauner Administration’s demands. These demands would be imposed on all the more than 360,000 people covered by the state group health plan, including all active and retired state employees, active and retired university employees, and their spouses and dependent children.
Misleading communications—including videos like this one—are intended to confuse employees. It’s a disservice to workers and to the collective bargaining process for the administration to cherry-pick information in this manner instead of providing the complete proposed plan summaries to our union. This type of misinformation is even more troubling when public taxpayer resources are being expended to produce and disseminate it, and when public employees are being subjected to it on the job.
Many state employees feel these videos and emails are inappropriate and unethical. State workers have tough and important jobs to do, serving their communities. When they’re at work they want to focus on their service, not be distracted and harassed on the job by the Rauner Administration’s anti-union misinformation campaign.
I hope this information is helpful.
Martha Merrill
Director of Employee Benefits
AFSCME Council 31
- Frenchie M - Tuesday, Aug 16, 16 @ 2:52 pm:
BTW — who is this guy? And why is he sending *videos* to state employees? It’s one of the weirdest things I’ve ever seen. And what’s with the creepy, vintage set?
- Fixer - Tuesday, Aug 16, 16 @ 2:55 pm:
To state employees- if you feel this is unethical, report it to the OEIG. This administration clearly does not believe the rules apply to them.
- Honeybear - Tuesday, Aug 16, 16 @ 2:57 pm:
THAT’S WHY WE ARE STRIKING SEPTEMBER 1RST!!!!
COME COMRADES! ONCE MORE INTO THE BREACH OR FILL THE GAP WITH OUR UNION DEAD!!!!
s/
I can’t stop laughing. I crack myself up. The whole Sept 1 strike thing makes me laugh so hard. God if Rauners’ people only knew how stupid even the thought is.
But seriously I think the whole Sept 1 Strike thing is cover for Rauner imposing the insurance on us.
Hey, he’s the one who will cause the near immediate collapse of the workforce.
I’d give it two months before the loss of workers shuts down function.
Anyone who can leave…..will.
Spouse and I discussed it just this weekend.
- Norseman - Tuesday, Aug 16, 16 @ 3:02 pm:
Please get off the complaints to the IG stuff. While I don’t trust what Terranova says without verification, nobody is going to say that giving state employees information on health benefits is unethical or illegal.
- Small Town Girl - Tuesday, Aug 16, 16 @ 3:07 pm:
No matter how many times they interrupt my workday with these infomercials, the Rauner administration is never going to brainwash me into thinking that they are doing me a favor.
- Cubs in '16 - Tuesday, Aug 16, 16 @ 3:07 pm:
‘JT’ should stop wasting time and resources on these “informational” emails and videos. I would imagine the vast majority of state offices have at least one employee who’s wise to the reality and who keep their coworkers informed of the facts.
- Anonymous - Tuesday, Aug 16, 16 @ 3:15 pm:
AFSCME’s response is pretty much on point. I agree, very bizarre getting these emails at work. And they are cheesy. Informed people know the difference between this 1970’s morning show “informational” piece and reality. Jeez.
- New Slang - Tuesday, Aug 16, 16 @ 3:16 pm:
My comment at 3:14ish
- Thoughts Matter - Tuesday, Aug 16, 16 @ 3:17 pm:
1. Used the closed captioning. Punctuation would be helpful, as would not covering up info on the slide with the closed captioning.
1. My family members have some health issues- none that prevent working, but that require medication and frequent Doctor visits. If we pay the same premium as now, our prescription costs will double and our doctor visit costs go up 50%. That’s per her own words in the video. We already max out the MCAP flex benefits account every year, and use every bit of it.
- Gotta ask - Tuesday, Aug 16, 16 @ 3:17 pm:
Which one of Bruce’s cronies makes money filming these cheesy videos? Is there a budget for that?
- SOIL M - Tuesday, Aug 16, 16 @ 3:24 pm:
Is there anywhere that we can see the actual real increases that the insurance plans will cost, and how much of that cost the state is going to cover and how much the state wants employees to pay?
- X-prof - Tuesday, Aug 16, 16 @ 3:24 pm:
That was about as informative as the titles on those book-like thingies the set dresser put on the shelves in the backdrop. The omissions were glaring.
Why does JT ask all the questions in a piece called “ASK JT”?
=== Please get off the complaints to the IG stuff. … nobody is going to say that giving state employees information on health benefits is unethical or illegal. ===
It probably is a waste of time to go to the IG, but what if it can be shown that state employees are being given a load of … misinformation on the taxpayers’ dime?
- Momof2 - Tuesday, Aug 16, 16 @ 3:30 pm:
I wonder why he doesn’t make a video about how they plan to privatize state jobs even if it doesn’t save the state money. Not once have they mentioned that in all the phoney memos and videos
- Henry Francis - Tuesday, Aug 16, 16 @ 3:35 pm:
JT’s videos and Proft’s newspapers. Rauner sure is getting his message out without the mainstream media.
- State Worker THX 1138 - Tuesday, Aug 16, 16 @ 4:02 pm:
I have never even bothered to view the videos. They are a waste of mine and the state’s time. I’ll watch them when there is something on paper that backs these “facts” up. smh
- Fixer - Tuesday, Aug 16, 16 @ 4:06 pm:
Norseman- it’s a possible violation of the ethics training every employee receives each year. Only giving a friendly reminder.
- Anonymous - Tuesday, Aug 16, 16 @ 4:07 pm:
The videos that have been releases has about 15% truth in it. Most of what is said are a lot of untrue and inaccurate information. People, do your own research. I have sat in several meetings and have heard on multiple occasions that our insurance premiums WILL double if we keep the same plan.
- Norseman - Tuesday, Aug 16, 16 @ 4:09 pm:
Fixer, if it was in the ethics test they must of added it after I retired. If you think it is, then complain. My money is still on that it’s a waste of time.
- Anonymous - Tuesday, Aug 16, 16 @ 4:53 pm:
As a non-union state employee, I felt past information presented by the Gov’s Adm. (and JT) seemed at least fair based on information available. However, today’s video was an extreme misrepresentation of the Gov’s Adm. negotiation position on health insurance since it failed to mention that premium payments would double.
- Cassandra - Tuesday, Aug 16, 16 @ 4:56 pm:
I don’t see anything nefarious here. Don’t like it, don’t watch it.
Health insurance (sigh) is part of compensation. What is the total cost of employee salary, health insurance and pension to the folks paying the bills-us. Can we afford what is proposed. How much will it contribute to any tax increase. I don’t care how they chop it up-salary vs. health insurance vs. pension contributions. That part is absolutely up to the negotiators. I want to know how much this is going to cost me.
- Johnny's in the Basement - Tuesday, Aug 16, 16 @ 5:19 pm:
There’s something creepy about a guy who goes by his own little made up nickname “JT”. At least on this message he included his name- the last one just had the initials.
This was the downfall of the Soviet bloc- government produced propaganda is unwatchable….
- Anon - Tuesday, Aug 16, 16 @ 5:42 pm:
What’s next? A mandatory open Skype connection so we can be interrupted randomly with propaganda that we must watch throughout the workday?
- Curmudgeon - Tuesday, Aug 16, 16 @ 6:30 pm:
According to “JT’s” infomercial, my prescription cost for generics will go up 88% and 54% for brand names. Office visits to my primary physician will go up 50% and specialist referrals will go up 67%.
If these are the good points he’s eager to tell us about, how much will all other health costs go up? I shudder at the thought.
- Anonymous - Tuesday, Aug 16, 16 @ 7:27 pm:
If Rauner wins this one against AFSCME, all other state employees (including the universities) and retirees are next.
- Allknowingmasterofraccoondom - Tuesday, Aug 16, 16 @ 8:45 pm:
- State Worker THX 1138 =I have never even bothered to view the videos. They are a waste of mine and the state’s time.=
But reading this blog on the taxpayers dime is not a waste at all. You and all the other state workers on this blog just. Dont. Get. It.
- Steward - Tuesday, Aug 16, 16 @ 9:29 pm:
“But reading this blog on the taxpayers dime is not a waste at all. You and all the other state workers on this blog just. Dont. Get. It.”
If you look at THX’s time stamp, it is after 4. You do know that a lot of people come in early and shorten their lunch so they can leave at 4 right? Flex time… some people on this blog Just Don’t Get It.
- Harvest76 - Tuesday, Aug 16, 16 @ 11:02 pm:
Allknowingmasterofraccoond, it may also be the state employee’s dinner break. Not all of us work “regular” hours. You really didn’t think this through, did you?
- Anonymous - Wednesday, Aug 17, 16 @ 7:20 am:
- Allknowingmasterofraccoondom - I happen to be off work yesterday. Even then, we get time for breaks and lunch. I rarely post on this blog, and when I do, I do it on my own time. Please find someone else to complain about.
- Anon - Wednesday, Aug 17, 16 @ 7:24 am:
Honeybear - please go… your posts provide no value.
Fixer - Norseman is right. Besides - with latest appointment, EEC is now controlled by the Gov…
- Demoralized - Wednesday, Aug 17, 16 @ 7:38 am:
Not sure why my comments aren’t always posting. Hopefully it will eventually.
- Facts are stubborn things - Wednesday, Aug 17, 16 @ 8:07 am:
If Rauners proposal is imposed, retitees will be going to court to inforce the recent kanerva vs weems isc ruling on retiree health care.
- Honeybear - Wednesday, Aug 17, 16 @ 8:38 am:
–Honeybear - please go… your posts provide no value.–
Anon, THANK YOU!!!!!! I was needing encouragement and this did it! I know my posts are effective now when I get comments like yours.
Thanks!
- Moby - Wednesday, Aug 17, 16 @ 8:38 am:
When Quinn signed that last contract, I seem to remember Republican lawmakers screaming to require legislative approval of all future union contracts. Do they still feel that way?