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General Motors Increases Deductibles for Some Workers to Offset Health Care Costs

Health insurance deductibles for active salaried workers at General Motors will increase by 50% in 2006, the automaker announced Sunday, the Detroit News reports. Salaried workers were notified last week of the changes, which GM spokesperson Robert Herta said were needed to offset rising health care costs. Changes to the plans include increasing the deductible by 50% for individuals from $300 to $450 and for families from $600 to $900. Maximum out-of-pocket costs for individuals will increase from $1,300 to $1,500 and from $2,600 to $3,000 for families, according to GM. Under a separate HMO plan, copayments for doctor visits and generic prescription drugs will increase to $20 and $7, respectively. Workers under the new plan also will have access to flexible spending accounts for health and day care expenses, as well as subsidized health club membership to encourage healthier living (Clanton/Terlep, Detroit News, 10/9). According to the AP/Long Island Newsday, the changes could save GM "millions of dollars." Company officials have said health care costs are about $6 billion per year, and they have made it a priority to reduce costs (AP/Long Island Newsday, 10/9). On average, GM salaried workers pay about 27% of their health care costs, compared with about 7% for unionized workers (Detroit News, 10/9). Problems With UAW Negotiations?
In related news, analysts on Monday said that GM negotiations with the United Auto Workers as part of an effort to reduce company health care costs "could be jeopardized" by the recent bankruptcy of auto parts supplier Delphi, the AP/Philadelphia Inquirer reports. GM, the former parent company and largest customer of Delphi, will have health care costs of $5.6 billion this year (Durbin, AP/Philadelphia Inquirer, 10/11). GM reported a loss of $1.1 billion for North American operations in the first quarter of this fiscal year and a loss of $1.2 billion in the second quarter. GM CEO and Chair Rick Wagoner in June announced that the company will eliminate 25,000 hourly manufacturing jobs by 2008 and close an unspecified number of facilities, in part because of health care costs. The GM board reportedly had established an internal deadline of June 30 to reach an agreement with UAW on health benefits, but the deadline passed without a deal. In recent months, UAW President Ronald Gettelfinger has said that the union will not reopen the contract with GM. GM hopes to reduce health care costs by as much as $1 billion annually, and company officials have asked hourly workers to accept out-of-pocket costs similar to those of salaried workers. UAW has launched an independent review to determine whether the union must make concessions on health benefits before the contract with GM expires to return the company to profitability (Kaiser Daily Health Policy Report, 8/23). Some analysts said that UAW "might be less willing to make concessions to GM now" because the company did not prevent the Delphi bankruptcy, which places the 24,000 union members employed by Delphi at risk for decreased wages and health benefits, the AP/Philadelphia Inquirer reports. GM spokesperson Jerry Dubrowski declined to comment on company negotiations with UAW but said that they will continue. UAW did not respond to requests for comment on the issue. Meanwhile, Standard and Poor's Ratings Services on Monday reduced the GM credit rating one additional level into "junk" status -- from "BB" to "BB-" -- which could limit the ability of the company to borrow funds (AP/Philadelphia Inquirer, 10/11).

"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.





General Motors Creºteri Deductibles pentru unele lucrãtorilor pentru a compensa Sãnãtate Costuri - General Motors Increases Deductibles for Some Workers to Offset Health Care Costs - articole medicale engleza - startsanatate