Dear Members,
We hope this message finds you in good health and spirits. We are reaching out to you today with important updates regarding the UA Local 740 Health Plan.
Retiree Health Plan – Self Payment Rates
As you are aware, the economic landscape has been challenging, and inflationary pressures have affected various sectors, including healthcare. Despite our best efforts to manage costs effectively, these external factors have necessitated a review of our health plan benefits.
In keeping with a resolution passed by our Trustees, we aim to maintain the trust fund subsidy for retiree health plans at 50%. This ensures that our commitment to supporting your healthcare needs remains strong and consistent. The other 50% of the cost is covered by you, our retired member.
To align with these measures and ensure the sustainability of our health plans, we regrettably need to adjust the self-payment rates for those who retired on or after January 1, 2023. The new rates effective July 2024 are as follows:
- Plan B: Previous rate of $138 will increase to $158; the Trust fund also pays $158
- Plan C: Previous rate of $110 will increase to $114; the Trust fund also pays $114
- Plan E: $16, there is no change in the rate
We understand that any increase in costs can be a concern, and we want to assure you that this decision was not made lightly. It is a necessary step to continue providing you with the quality healthcare benefits you deserve.
We would like to inform you that as a retired member, you have the flexibility to switch to one of our less expensive retiree health plans. This option may be suitable if you find the less expensive plan more affordable and are willing to adjust your coverage level for certain benefits accordingly.
Should you choose to switch to a less expensive plan, please consider the following:
- The lower-cost plan may reduce or eliminate coverage levels for certain benefits.
- Once you switch to a lower coverage plan, please be advised that you will not be able to return to a higher coverage plan in the future.
The benefit coverage for each plan is as follows (please refer to your Benefits Booklet for specific coverage details):
- Plan B: Prescription Drugs 80%, Major Medical 80%, Dental, AIG Emergency Out of Province Medical, $15,000 Life Insurance
- Plan C: Prescription Drugs 80%, Major Medical 80%, AIG Emergency Out of Province Medical, $15,000 Life Insurance (No Dental)
- Plan E: $15,000 Life Insurance Only
We encourage you to review your healthcare needs carefully and consider whether a different plan may be more aligned with your current situation.
Your well-being is our top priority, and we are here to support you in making the best decision for your healthcare coverage. If you have any questions or need assistance understanding these changes, do not hesitate to reach out to our office.
AIG Emergency Out of Province Medical Coverage
We are pleased to announce some important changes to our Emergency Out of Province Medical Coverage provided by AIG. These changes are currently in effect and have been implemented with no impact on the premium rate.
- The termination age has been increased from 80 to 85.
- The lifetime maximum benefit amount for insured members aged 70 or older has been increased from $100,000 to $1,000,000.
Please note that there is no change in the lifetime maximum benefit amount for insured members under the age of 70.
In addition, AIG has added a Stability Clause as part of the Exclusions under the policy. This clause states that no coverage shall be provided for any Sickness, Injury or Medical Condition that was not Stable in the 180 days prior to the departure date for Insured Persons who are 80 years of age or above.
A condition is considered “Stable” if there has been:
a) No hospitalization b) No new diagnosis, treatment or prescribed medication c) No change in treatment or medication d) No new, more frequent or more severe symptoms e) No new test results showing deterioration f) No referral to a specialist (made or recommended) and the Insured Person is not awaiting surgery or the results of further investigations performed by any medical professional.
A “Change” includes any new treatment or medication, stopped treatment or medication, increase or decrease in treatment or medication but does not include transition between generic and brand‐name versions of drugs with the same active ingredient and dosage or the routine adjustment of dosage within prescribed parameters when taking insulin or oral diabetes medication.
We encourage all members insured under the UA Local 740 Health Plan to review the AIG policy brochure to understand the coverages and exclusions provided by this policy prior to travel. The brochure is available online through your myManion account under My Dashboard or in paper format at the UA Local 740 Benefits Office.
We hope these changes will provide you with greater peace of mind during your travels. If you have any questions, please don’t hesitate to reach out.
Best Regards,
Leslie Wells
Administrator
UA Local 740 Benefit Plans