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Staff health care cost to increase 493percent
By Sean Smith
Whalesong Staff
The University
of Alaska Administration is facing a nearly 500 percent increase
in health care cost beginning in January. According to Robert Sewell,
vice president of the University of Alaska Staff Alliance, the estimated
health care cost for Fiscal Year 2001 was $14.5 million dollars,
but the actual total was $18 million. The $3.5 million overrun in
health care that is boosting this years premiums from $184.60 of
last year to $1095.07 starting this coming January 1, 2002. This
is a 493% increase, or $910.40 increase from last years monthly
dues.
“There are many reasons for this overrun,”
said Sewell. “Due to the fact that the population is getting
older, the morbidity rate is increasing. Also due to the fact that
there have been an increasing number of large claims, those of $50,000
or higher.” The UA health care plan had not increased over
the past few years and now it looks as though the employees are
paying for the lack of inflation in their health care cost. The
benefits of the plan have also stayed the same. Sewell said this
is causing heated arguments and continual debate on what to do about
the overrun cost of last year.
The classified and APT (Administrative, Professional,
and Technical) employees are currently covered by the UA2000 plan.
There is an effort to begin unionizing to get more of a voice to
speak to the administration. “There are a few classified employees
who are trying to unionize,” said classified employee Lisa
Ward. “Unionizing will be the answer to get a better health
care plan, better benefits, and better working conditions.”
The classified and APT, which are estimated at about 2800 employees
statewide, are attempting to join the Alaska Public Employees Association
which also is the unionizing consultant for the trade employees,
and represent the faculty on campus as well.
The Staff Alliance recently sent out email to all classified
and APT employees asking for their input on several issues. These
issues are: What portion of the FY02 cost excess should fall on
the employees versus the University: Should the cost overrun be
leveled among all classified and APT employees or should a pro-rated
scale be recommended to the administration? How should the dependent
charges be handled? And should the Alliance re-affirm its prior
request for a 2 percent salary grid increase? The grid increase
would be implemented because inflation has canceled out any chance
for an employee to gain a raise. General inflation, which has been
2 percent over the past years, has canceled out any grid increase,
which has been at 1.5 percent the past two years.
The Staff Alliance is adopting a formal position based
on the staff’s input, which will be discussed in a special
meeting that is to take place October 14.
“The health care issue is one that affects all
classified employees in the take home money they will receive,”
says Sewell. These health care increases are taking place, while,
“There is evidence that the employees are already being paid
under market,” he said. “These changes are occurring in
the health care cost now and there is no evidence that they will
stop from increasing state, and nation wide,” he said.
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