Boston Newspaper Guild

BNG Scholarship Winners

Mon, 18 Jul 2011 17:01:00 -0500

June 15, 2011 BNG SCHOLARSHIP WINNERS The Boston Newspaper Guild is pleased to announce that on Tuesday, June 14, 2011 members of the BNG Governing Board met and by lottery drew the following students as winners of the five $1,000 BNG College Scholarships for the Fall/Spring 2011 – 2012 terms: Brian Dougherty: University of Massachusetts at Lowell Lauren Holmes: Miami University Elisabeth Makishima: Smith College Michael Rodensky: Cornell University Suzanne Sullivan: University of Massachusetts at Amherst Best of luck to ALL the applicants. The Boston Newspaper Guild is honored and proud to offer these scholarships to our members and their families.

Contract Books Available

Mon, 18 Jul 2011 17:00:00 -0500

June 27, 2011 Dear BNG Members, The new contract books have arrived. For cost-saving purposes, only a limited number were printed. If you require a hard copy, please contact the union office at (617) 773-3232. Please note: The contract is available on Compass. Thank you.

The Boston Newspaper Guild 7th Annual College Scholarships

Fri, 20 May 2011 17:00:00 -0500

Once again, the Boston Newspaper Guild is offering 5 college scholarships in the amount of $1,000 each to eligible immediate family (as defined in our CBA) of Boston Newspaper Guild members. BNG members must be in good standing (union dues current). The application process will be the same as previous years and required will be:

a brief letter of interest from the student, citing his/her relationship to a BNG member
proof of acceptance to or enrollment at an accredited 2 or 4 year college or university

The deadline for the 2011 BNG College Scholarships will be 5pm on Monday, June 13, 2011. The winners will be chosen by lottery on Tuesday, June 14, 2011. Winners will be announced and contacted immediately by the Union. Please send your letter of interest and proof of acceptance or enrollment to: Boston Newspaper Guild Attn: College Scholarship Committee 47 Willard Street Quincy, MA 02169 The Boston Newspaper Guild College Scholarship program draws many applicants each year, so be sure to get your application in by the deadline.

2011 Governing Board Meetings

Mon, 03 Jan 2011 11:02:00 -0500

BNG Governing Board meetings are held the second Tuesday of every month. January 11th February 8th March 8th April 12th May 10th June 14th July 12th August 9th September 13th October 11th November 8th December 13th

Nomination Time for Convention Delegates Set

Wed, 15 Dec 2010 12:00:00 -0500

This is notice of the upcoming nomination of Boston Newspaper Guild delegates to the TNG Sector Conference, which will be held February 2-6, 2011 in Lake Buena Vista, Florida. In accordance with the CWA Constitution, the Boston Newspaper Guild can send up to four delegates to the TNG Sector Conference. Under the Constitution, if four candidates are nominated for the four delegate positions, the four candidates will be declared duly elected. If there are more than four candidates nominated, there will be an election for the four delegate positions. An alternate delegate, who would replace an elected delegate who is unable to attend the event, can also be nominated. The nominations for delegates will be held: Wednesday, December 29, 2010 5:30 pm Boston Newspaper Guild office 47 Willard Street, Quincy

Contract Q & A

Tue, 07 Dec 2010 11:05:00 -0500

1. What happens if I already maxed out my 401k account this year? Can I still put the 3% lump sum payment into my account? Yes, but the payment will go into your account in January of 2011 and be applied towards your 2011 contribution total. This only impacts about 2% of our overall membership. For the majority of our members, the payment will be applied to their 2010 contribution total. 2. Can I split the 3% lump sum payment between my 401k account and cash? Yes, but unless you return the form indicating your decision to do this to payroll by December 17th, your payment will be paid to you in cash. The form is on Compass. 3. Will the 3% lump sum be direct deposited into my bank account? No, all 3% lump sum payments will be issued in the form of a live check (minus all applicable taxes and deductions) unless you choose to defer all or a portion of your payment to your 401k account. 4. What is the 3% lump sum payment based on? Your annualized weekly pay. Your weekly pay defined as your base pay plus merit pay. No other pay types (OT, commissions, etc.) will be used in the calculation. 5. What do you think will happen if we vote no? We would go back to the table. But, how soon and what would be offered is uncertain. 6. Why did the Executive Committee unanimously support the contract? We considered the grim outlook for the newspaper industry as a whole. We also reviewed the current financial condition and projected financial condition of the Globe. We believe it is the best offer we could negotiate under these circumstances. We understand this tentative agreement does not restore what was lost during the 2009 negotiations, but it is a step in the right direction. The committee must negotiate for the good of the union as a whole and we tried to get the most we could for the greatest number of members. Healthcare, for example, was at the top of most members’ wish lists. We believe the changes to the health plan will greatly benefit our members well into the future. 7. What again about part-timers? We submitted numerous proposals to benefit part-timers. We succeeded in restoring the life insurance benefit eliminated in 2009. Unfortunately, in the case of profit sharing, the company would not budge. The Globe last year agreed to profit sharing language for full-timers only. This time around, the company would not agree to change the language to include part-timers. We tried many different ways to change this, but the answer was always, “no”. 8. How bad is it that we are letting the Globe operate outside union rules for up to two years? We were troubled by the Globe’s request to launch new initiatives with non-union workers. However, they made the case that they needed “flexibility” to start and stop new initiatives quickly. We agreed to that request, but with limits. A new initiative, such as the current Your Town websites, may last up to 24 months. At that point, if the initiative continues, the Guild can try to organize workers in those jobs. If the Globe opts not to put the jobs into the Guild, they will have to pay the union $2,000 per position per year. That money will go into the union’s treasury. It’s important to note that the “new initiative” language must also be renegotiated in 2016. 9. How do I get an absentee ballot? Our Election Commissioner Pat Daly will be in the Globe cafeteria on December 8th from 11-2 and again on December 16th from 3-7. You may also request an absentee ballot be mailed to your home by contacting Pat Daly directly at pdaly1291@netscape.net. 10. When and where is the contract vote? The contract vote will take place in the Link on December 22nd from 8am-8pm. All members in good standing are encouraged to vote.

Election Results - June 10, 2010

Fri, 11 Jun 2010 20:10:50 -0500

June 11, 2010

Election Results of
The Boston Newspaper Guild (TNG-CWA Local 31245)
Held at the Boston Globe
June 10, 2010 314 Members Voting EXECUTIVE COMMITTEE President Scott Steeves 237 Francis Kelly 9 Scott Allen 4 Mark Anastas 2 Beth Daley 2 John Ellement 1 David Butler 1 Chris Reidy 1 Stephen Smith 1 Blanks 56 Vice President James Herndon 221 Marc Anastas 3 Sean Murphy 2 Scott Allen 1 Beth Daley 1 Blanks 86 Treasurer Katherine McCabe 236 Scott Allen 1 Beth Daley 1 Liz Kowalczyk 1 Chris Zito 1 Blanks 73 Recording Secretary Timothy Flynn 238 Beth Daley 2 Marc Anastas 1 John Ellement 1 Katherine McCabe 1 Frank Phillips 1 Executive Committee At Large (3 positions) Beth Daley 208 Jenna Russell 207 David Ryan 169 Carl Younger 105 Paul Mahoney 89 John Ellement 1 Liz Kowalczyk 1 Frank Mahoney 1 Scott Steeves 1 GOVERNING BOARD DELEGATES Advertising Operations (1 position) Richard Giedd 2 James Kenney 2 Boston.com/Advertising (1 position) Chris Zito 3 Ed Halloran 3 Derek Tardanico 1 Boston.com/Editorial (1 position) Gary Dzen 5 David Stewart 1 Circulation (1 position) Paul Mahoney 2 Credit, Accounting, Cashiers, Payroll, Advertising Finance (1 position) No votes Editorial Design (1 position) David Butler 6 Leslie Becker 1 Financial News/Telephone Operators (1 position) Jenn Abelson 17 HR, Marketing Services, Executive Offices, Purchasing, PO (1 position) Andy Kovacs 2 Stephen Sheehan 1 Information Services (1 position) Christine Lane 6 Inside Advertising Sales (1 position) No Votes Library, Magazine, Editorial Page, Spotlight, Special Sections (1 position) Scott Allen 18 Living Arts (2 positions) Michael Saunders 22 James Reed 7 Timothy Flynn 1 Marketing Design, Display Desk (1 position) Paul Bachand 6 News Copy Desk, Editorial Admin (1 position) Stacey E. Myers 12 Dorothy Clark 2 Newsroom (2 positions) Sean Murphy 18 Liz Kowalczyk 14 John Ellement 9 David Filipov 1 Tracy Jan 1 Donovan Slack 1 Outside Advertising Sales (2 positions) Andrew Donovan 2 Chris Conway 1 Jeff Hurley 1 Tom Pilla 1 Photo(1 position) John Ioven 11 Security/Production (1 position) Marc Bell 2 Sports (2 positions) Bonnie Foust 12 Colleen Dumont 2 James Hoban 1 James McBride 1 Zones, Sunday, Sci-Tech (2 positions) Katheleen Conti 15 Paul Makishima 3

BNG Scholarship Winners

Fri, 11 Jun 2010 20:09:21 -0500

BNG SCHOLARSHIP WINNERS The Boston Newspaper Guild Governing Board is pleased to announce that on Tuesday, June 8, 2010 members of the BNG Governing Board met and by lottery drew the following students as winners of the five $1,000 BNG College Scholarships for the Fall/Spring 2010 – 2011 terms: Nicole Adduci: Dalhousie University in Halifax, Nova Scotia Christopher Frangules: University of Massachusetts at Lowell Lauren Holmes: Miami University Michael Mattia: University of New Hampshire Danielle Sneyd: Roger Williams University, RI Congratulations to ALL the applicants. The Boston Newspaper Guild is honored and proud to offer these scholarships to our members and their families.

The Boston Newspaper Guild 6th Annual College Scholarships

Thu, 20 May 2010 12:15:12 -0500

The Boston Newspaper Guild 6th Annual College Scholarships Once again, the Boston Newspaper Guild is offering 5 college scholarships in the amount of $1,000 each to eligible immediate family (as defined in our CBA) of Boston Newspaper Guild members. BNG members must be in good standing (union dues current). The application process will be the same as previous years and required will be:

a brief letter of interest from the student, citing his/her relationship to a BNG member
proof of acceptance to or enrollment at an accredited 2 or 4 year college or university

The deadline for the 2010 BNG College Scholarships will be 5pm on Monday, June 7, 2010. The winners will be chosen by lottery on Tuesday, June 8, 2010. Winners will be announced and contacted immediately by the Union. Please send your letter of interest and proof of acceptance or enrollment to: Boston Newspaper Guild
Attn: College Scholarship Committee
47 Willard Street
Quincy, MA 02169

The Boston Newspaper Guild College Scholarship program draws many applicants each year, so be sure to get your application in by the deadline.

New Treasurer

Thu, 14 Jan 2010 23:32:00 -0500

NEW TREASURER Dear Member, I am pleased to announce that Chris Zito, a longtime delegate from advertising, is the new treasurer of the BNG. He was unanimously chosen by a vote of the governing board at Tuesday’s meeting. Chris replaces Patrice Sneyd, who resigned effective Jan. 12. Please join me in congratulating Chris on his appointment. In Unity, Scott Steeves Acting President

Governing Board Minutes, December 8, 2009

Thu, 14 Jan 2010 23:30:00 -0500

Governing Board Minutes Dec. 8, 2009 The board met at 5:30 p.m.at the union office at 47 Willard St. in Quincy. Present were Jenn Abelson, Scott Allen, Paul Bachand, David Butler, Dorothy Clark, Katheleen Conti, Beth Daley, Andy Donovan, John Ellement, Tim Flynn, Bonnie Foust, Richard Giedd, Jim Herndon, John Ioven, Andy Kovacs, Christine Lane, Paul Mahoney, Kathy McCabe, David Ryan, Patrice Sneyd, Scott Steeves, Carl Younger, Chris Zito. BNG member Sean Murphy attended as an observer. Acting President Steeves chaired the meeting. Steeves motioned to approve the minutes of the Nov. 10 governing board meeting. Seconded by Ioven. Unanimous on a voice vote. Giedd motioned to approve account balances for October. Seconded by Herndon. Unanimous on a voice vote. DAN TOTTEN TRIAL AND RECALL: PETITION Steeves said a general membership meeting would have to be scheduled to hear Dan Totten's appeal of the verdict in his Dec. 1 trial on charges of financial impropriety. He said a quorum of the general membership would have to be present. If not, the appeal would be sent for action to the CWA Executive Committee. Sneyd said the Totten trial had cost upward of $7,600. She said about $5,000 more was needed to cover costs. Butler moved approval of $5,000. Seconded by Daley. Approved on a voice vote. Clark voted no. Steeves said a general membership meeting would have to be held on the petition filed to recall Dan Totten as president. He suggested that both the Totten appeal, and the recall meeting, be held on Dec. 17 at the Boston Teachers Union Hall. McCabe stated the recall petition met the provision of the CWA Constitution for an election to be held. Charges of financial impropriety were clear. The petition was signed by at least 20 percent of the BNG membership. She said that 150 members signed the petition, but that only 136 signatures could be verified by the executive committee. The 136 signatures were still enough to meet the 20 percent requirement, she stated. Allen motioned for Totten to be suspended from his position as president until the recall election was completed. Seconded by Flynn. Approved on a voice vote. Donovan and Ellement abstained. Steeves and McCabe did not vote. Opposing, by a show of hands, were Conti, Clark, Lane and Younger. Ryan motioned to suspend Totten for the duration of the appeals process. Seconded by Abelson. Approved on a voice vote. Donovan and Ellement abstained. Steeves did not vote. Opposing, by a show of hands, were Clark, Lane and Younger. *** TREASURER RESIGNATION Sneyd read a letter resigning her position as treasurer, effective Jan. 12, 2010. Steeves thanked Sneyd for 11 years of service to the union. "It's sad to see you leave. But I want to thank you for all your years of service to the union." He said notice of the vacancy would be posted on union bulletin boards, in accordance with BNG By-laws. Sneyd thanked the union for allowing her to serve. "A word of wisdom to all: focus on the issue, not the person," Sneyd said. OTHER BUSINESS: Steeves said the National Labor Relations Board had dismissed an unfair labor practice charge filed against the BNG over the 2009 contract. He said the appeal period was not over. Steeves said the company had agreed to pay coop students holiday pay. The union did not have to file a grievance. He thanked Daley for raising the issue. Steeves said the deck at the union office needed to be redone. He recommended hiring David Bauman and Tim Keane, a union glazer and carpenter, who are unemployed. Steeves disclosed that the two men are married to Dawn McDavid-Bauman and Jen Keane, part-time secretaries at the union office. He said the job should take no more than two days to complete. Daley motioned to approve the request. Seconded by Butler. Unanimous on a voice vote. Younger said the TNG is offering a scholarship for minorities to attend the New Officers Training Seminar scheduled for February in Silver Springs, MD. He encouraged board members to consider it. Younger motioned to adjourn. Seconded by Kovacs. The meeting adjourned at 7:05 p.m. Submitted, Katherine M. McCabe Recording Secretary

Notice of Recall Election

Mon, 28 Dec 2009 08:15:00 -0500

Notice of Recall Election of Daniel Totten
January 28, 2009
in the Affiliated Dining Room at The Globe
8am – 8pm

For questions or Absentee Ballots, please contact the Election Commissioner, Pat Daly at 781-828-0663 or email PDaly1291@netscape.net.

Governing Board Meeting Schedule

Thu, 10 Dec 2009 13:25:00 -0500

The Boston Newspaper Guild Governing Board meets on the second Tuesday of every month. The meetings scheduled for 2010 are as follows: January 12, February 9, March 9, April 13, May11, June 8, July 13, August 10, September 14, October 12, November 9, and December 14.

BNG Treasurer Position Vacancy

Wed, 09 Dec 2009 13:30:00 -0500

BNG Treasurer Patrice Sneyd announced at last night’s Governing Board meeting that she will be resigning. In accordance with the BNG Constitution & Bylaws, this position will be filled by Governing Board appointment at the January 12, 2010 Governing Board meeting. Any member interested in this position should contact the BNG office at (617) 773-3232 or office@bgol.org. The BNG thanks Patrice for her many years of dedication and service to the union.

Taft Hartley Health Fund Questions & Answers

Wed, 23 Sep 2009 15:25:00 -0500

Sept. 23, 2009

Taft Hartley Health Fund
Questions & Answers Based on the numerous communications that we have received over the past weeks regarding the decision of the Globe/BNG Health Fund trustees to change health insurance plans, the Fund trustees, with the help of their advisors, have developed the following Questions and Answers to help educate the Guild membership not only about the planned change but to provide some basic information about the Health Fund itself, the role of the trustees, health insurance rate setting, and the basis for the trustees decision. We hope you will read this before attending one of the many meetings that are scheduled for later this month. Taft Hartley Fund Basics Q1. What is a Taft Hartley Health Fund? A. A Taft Hartley Health Fund is a trust fund established through collective bargaining between a company and a union (or multiple companies and unions) to provide health and related benefits for covered employees and their families. It is subject to the provisions of the Employee Retirement Income Security Act (“ERISA”). The fund and its assets are managed by a joint board of trustees equally representative of management and labor. Q2. What is the role of the trustees, who are they and who selects them? A. The role of the trustees includes balancing the interests of the fund and its members, carrier selection, benefit and plan design implementation and management, selection of and consultation with benefit and actuarial consultants, determination of eligibility for fund coverage, financial management of the plan’s income, expenses and reserves and a fiduciary responsibility for the assets of the fund. In the case of the Guild fund, the company trustees are selected by the Senior Vice President of Employee Relations, Greg Thornton, who is also a Fund trustee. The other two company trustees are Harriet Gould, Vice President of Employee Relations and Steve Behenna, Director of Benefits. Steve is also the Fund administrator. The union trustees are selected from the Executive Committee. Dan Totten, the Union President, Scott Steeves, the Vice President and Patrice Sneyd, the Treasurer are the current union trustees. Q3. Why are Guild employees covered under the Taft Hartley Fund and management employees are not? A. Nearly all of the Globe’s unionized employees are covered by individual Taft Hartley funds established through collective bargaining between that union and the Globe. The Guild Taft Hartley Fund was established in 1994 through collective bargaining. You can find the contract provisions governing the Fund on pages 51 through 53 of the contract. Management employees receive their benefits through the New York Times Company, which are the same benefits for all NY Times non-union employees. Individual Globe management employees have no input into selection of their health insurance carrier, plan design nor changes in their premiums. Those decisions are all made by the New York Times Company at the corporate level. The Current Status of the Health Fund Q4. What are the sources of funding for the Health Fund? A. The Globe contributes to the cost of employee health insurance through negotiated payments which are listed on p. 52 in the contract. These payments, also known as “quid pro quo” payments have been negotiated over a series of contracts beginning in the 1980s. That is the mechanism that the Globe utilizes with all its unions to pay for health insurance benefits. Prior to the contract ratification vote on July 20th the total annual payments that the Globe made to the Fund was approximately $4.5 million. The remainder of the cost for health insurance is paid by employees through pre-tax payroll deductions. Those are the only two sources of funding which the Fund can accept. Q5. What is the current cost of the health plan we now have? A. The annual premium cost to the Health Fund to provide the medical coverage which members currently have through Harvard Pilgrim Health Care and dental coverage through MetLife is $5.7 million annually of which the Globe was paying approximately $4.5 million or 79% prior to the July 20th ratification vote. In order to help meet the target of $10 million in reduced labor costs, the membership voted to give up a total of $1,534,349 annually of the $4.5 million then being paid. That reduced the Globe’s funding to 54% of the plans’ costs. In addition, there is a one time quid pro quo payment of an additional $217,651 which is to be deducted this year only as part of the mitigation expense from the pay-back of the 23% pay decrease. As a result, the employees covered by the Fund must make up the short fall in the plan’s funding through increased payroll contributions. Q6. Is there a current balance in the Health Fund? How much is it? How much has to be maintained in the account? A. There is no mandated reserve held in the Health Fund. However, one of the responsibilities of the trustees is to ensure that the Fund is solvent. We try to maintain a sufficient balance to allow for changes at open enrollment, the cost of members who switch from individual to family coverage, addition of new employees and, if possible, a small amount to mitigate future renewal rate increases. The Fund reserve was $384,909 as of July 1st but that has decreased each month as premiums have not increased in line with the decrease in Globe Fund contributions effective August 1st. As of October 1st we project the balance in the Fund to be $35,000, which is very low. Q7. Last week the trustees announced increases in the current health fund premiums. Why aren’t these increases sufficient to fund the current plans? A. The new rates were characterized as what they are - a stop gap measure which will allow the Fund to remain in the black through the end of the year. Those increases are insufficient to carry the premium shortfall until May. If we did nothing to change the plan design until the current renewal date of May 1st the actual monthly cost for the premium would need to be: $70.50/individual and $164.27/family with part time employees contributing 1.5 times that rate. If you do the math and you divide the annual shortfall of $1,534,349 by twelve, the monthly gap is $127,862. That deficit gets split between individual and family participants. The Need to Move to a High Deductible/HSA Plan Q8. Why can’t we merely make some adjustments to the plan design of the coverage we now have? A. Adjustments to plan design will not achieve sufficient savings to the cost of the current health insurance. For example, an increase in the current in-hospital co-pay from $500 to $1000 only saves $47,521 in premium cost; increasing the HMO specialist visit co-pay is worth $35,740 and increasing the emergency room co-pay from $75 to $100 is worth $53,461. These modifications get you nowhere near the $1.55 million shortfall needed to cover the current plans’ premiums. Q9. Why haven’t the trustees looked at other carriers? A. The trustees recently marketed this group to the major local carriers before the renewal was effective last May 1st. Vendor proposals were reviewed then. At the end of this process the trustees concluded that Harvard Pilgrim’s 5% rate increase over that for the prior plan year was competitive – indeed, lower than that of the other carriers. It was through this same process that the trustees decided to change dental coverage from Delta Dental to MetLife, which saved $48,000 annually in premium cost. One major advantage which the Guild Health Fund has in remaining with Harvard Pilgrim is that all the other Globe/union Taft Hartley funds also are insured by Harvard Pilgrim. Over the years the Globe has used the buying power of the funds as a whole to help drive down Harvard Pilgrim’s administrative costs for all the funds, including the Guild. If we were to change to a different carrier, that benefit would be lost. We estimate that saves the Fund $50,000 to $60,000 annually. Q10. This seems like such a dramatic change. Did you look at other plans? What would they cost? A. We looked at other plans and the annual savings were insufficient to make up the shortfall in cost. Many studies have shown that high deductible plan designs do curtail unnecessary medical services without compromising quality. In order to control the Fund’s costs going forward, we must control the utilization of medical services as the membership ages. It is also critical that we encourage members to seek preventive care in order to avoid unnecessary and higher cost services if a medical condition goes untreated. Q11. Some of us would rather stay with the plan design we currently have and pay higher premiums, even double the current cost since it seems it would cost us less than paying the high deductible combined with co-insurance payments plus weekly premium deductions. Why can’t we do that? A. While that approach may favor some employees, others are clearly benefited from the high deductible/HSA plan the trustees have selected for the membership. It is one of the trustees’ responsibilities to provide the best coverage for the group as a whole. Employees whose families or who themselves do not every year heavily utilize health insurance, drug coverage, etc. are clearly better off with this new coverage. We also took into account that premium costs are expected to increase each year. Current trend rates in the New England market have insurance carriers increasing rates in 2010 by 10% or more. Our paper covered this issue in Wednesday, September 16th front page story by Bob Weisman, “Health care costs to rise again”. With Globe contributions to the Health Fund fixed for the foreseeable future at the current level it seemed most prudent to make a change now to a high deductible/HSA plan. Other Globe- union Taft Hartley health funds have already made this change. Q12. If the current plan design and cost is better for some employees and the high deductible/HSA is beneficial for others, why not offer both? A. Premiums are based on the expectation that there will be some light users/healthier employees, some moderate users and some heavy users among the group. The principle of adverse selection would result in the migration of the employees who experience higher utilization (and cost to the carrier) into the current plan design and those who utilize less into the high deductible/HSA. In short order, the current program rates would spiral out of control and end up costing the Fund much more money. Q13. What information did the trustees rely on to make their decision? A. The trustees have been meeting regularly since early August to review the current Fund status and the alternatives available to the Fund. We have met as a group with our benefit advisors, our benefit advisors have met with representatives of Harvard Pilgrim, and the trustees, their advisors and representatives of Harvard Pilgrim have met together. The advisors looked at the recent prior proposals submitted by the other local health plans, BNG specific claims and utilization data and independent actuarial cost projections to develop their recommendation to the trustees. Q14. Why weren’t we given more notice about such a dramatic change? A. It took several weeks for the trustees to analyze options and to concur that the best path for the Fund to take was to switch to a high deductible/HSA plan. At that point we also concluded that given the ongoing drain on the Fund’s reserves from the negotiated decrease in the Company’s contributions that putting the change in as soon as possible was the most fiscally prudent course. We were also trying to avoid a two-step change in rates as we will now have. That said, once we became aware of the concern we reversed course and have postponed implementation until January 1st. Q15. Why is our plan so expensive? If you look at the Mass Connector, a web site for state provided health insurance, there are plans which appear to be less costly with a decent plan design. A. The MA Health Insurance Connector is a state agency created in 2006 to provide affordable health insurance coverage to individuals without access to employer-sponsored coverage. Because the Globe contributes to the cost of a medical program for Guild-represented employees, you would not be able to participate in these plans. Each carrier offers a "low", "medium" and "high" plan of benefits. Premiums are age based so that older individuals pay more for the same coverage as younger ones. The Guild’s Health Fund plan costs are driven primarily by participants’ claim experience. Recent news coverage of the Health Insurance Connector has suggested that costs have exceeded budgeted expectations, also reflecting the high cost of health care in Massachusetts. Q16. At the conclusion of the meetings, will the membership get to vote on what it prefers? A. No. The plan design is a trustee decision. However, we will listen carefully to all the comments and respond to questions but at the end of the process it is the trustees’ responsibility to make their decision in the best interest of the Fund and the group as a whole. Keep in mind that the vast majority of employees who are not covered by Taft-Hartley funds have no input whatsoever in the structure or cost of their health insurance coverage. The Basics of a High Deductible/HSA Plan Q17. What is an HSA Plan? A. An HSA is a new form of consumer directed health coverage pairing a high deductible health plan with a tax -free portable account used for health care expenses (e.g., medical, dental, and vision) which can build over years into your retirement. The money is put in on a tax-free basis, the investments yield grows tax -free, and qualified withdrawals are also tax-free. If you leave the Globe, your HSA account is portable and goes with you. Unlike the current Flexible Spending Account, to which many of you contribute, in which you “use it or lose it” at the end of the year, HSA contributions roll over from year to year. You can use funds in the account to pay for deductibles, co-pays and services which are not covered by your health insurance. The HSA can also be used to defer income (subject to annual contribution limits) and pay for eligible retiree medical premiums. Q18. How will our HSA be funded? A. The current plan is for the Fund to contribute $1000 to each full time employee for family coverage and $500 to each full time employee for individual coverage. Part time employees who participate would receive $333 for individual coverage and $666 for family coverage. For 2010, the maximum employees and the Fund will be allowed by law to contribute on a combined basis is $3050 for single employees and $6150 for family coverage. Q19. If I incur a large expense early in the year, what money is available to me to use? A. You can only use the funds which are available in your account. The Fund will make its contributions on a monthly basis. You may also make periodic contributions to the HSA, up to the legal limits, on a pre-tax basis to pay for eligible health care expenses. Q20. I have never heard of this type of plan. Who else has it? A. These types of plans have now been in existence for several years. According to industry benefit surveys, high deductible plans are becoming more prevalent as premiums for more traditional plans continue to climb beyond affordability for most employers and their employees. Other Globe-union Taft Hartley Funds have switched to a high deductible plan and others are looking into it. Q21. Doesn’t this type of plan discourage usage and result in more expensive illnesses for the covered employees? A. The plan is designed to help individuals be wiser health care consumers by focusing on less expensive, but equally effective treatments for their health care needs. For example, use a lower cost generic or preferred brand drug instead of an expensive non-preferred brand. A less expensive outpatient facility can be used to get an MRI instead of going to the hospital where the cost is two or three times as much. Use high quality community-based hospitals, like Newton Wellesley or Milton Hospital for selective services instead of tertiary hospitals such as Mass General, Beth Israel and other such state-of-the art facilities designed to provide specialized health care. Harvard Pilgrim’s nurse line can be used to triage emergency services to avoid unnecessary and costly visits to the emergency room. Many studies have shown that high deductible plan designs do curtail unnecessary medical services without compromising quality. In order to control the Fund’s costs going forward, we must control the utilization of medical services as the membership ages. It is also critical that we encourage members to seek preventive care in order to avoid unnecessary and higher cost services if a medical condition goes untreated. Thus, in order to encourage preventive care it is important to note that preventive care visits are covered in full.