Memo Health Care Unions

MEMO

To: Members of Local Trade Union in Indiana

From: Stacy Smith, consultant

Re: negotiations for health care strategy

As you may know, high healthcare costs are a concern for Indiana and the entire nation. We can measure these costs, but making a decision of what is best for you and/or your family can be challenging. Significant changes will be taking place in 2014 due to the Affordable Care Act (ACA). Indiana was among the first three states to be awarded a federal Level One Establishment grant in May, 2011. The Indiana Department of Insurance and Family and Social Services Administration received of $6.9 million to update their information technology systems, develop a financial management plan, and acquire legal, actuarial, and financial expertise (healthcare.gov).

Our strategy is designed with helping the employee make easier decisions when it comes to health care.

Current trends for health care costs and employer contributions- In 2013, the average annual premiums for employer-sponsored health insurance are $5,884 for single coverage and $16,351 for family coverage. The single premium is 5% higher and the family premium is 4%

higher than the 2012 average premiums. The average single premium per enrolled employee for employer-based Health Insurance in Indiana in 2011 was employee contribution $1,037 employer contribution $4,095 for a total of $5,132. The average Family based premium is $3,257 for employee and $11,456 for employer contribution for a total of $14,713. Much more federal information can be found at the Kaiser Family Foundation www.kff.org, they are a leader in health policy analysis. A family of 4 living in Indiana needs to make between $82,725-$88,078 to have purchasing power. This is a graph of the trend spending on health care in Indiana:

Tax Credits- Here is how the calculation might work for a 40-year-old individual making $30,000 a year (based on a sliding scale from 2% to 9.5% of income):

* Estimated benchmark...