Search PEP Archives | October 2001 Table of Contents | Public Employee Press Archives | Home 2001: A banner year for benefits By Gregory N. Heires What a difference a year makes. One year ago, the DC 37 Health and Security Plan needed to shore up its financial strapped prescription drug benefit by implementing a new co-payment structure. And union health-care experts were still concerned that skyrocketing medication prices threatened the benefit. The situation improved dramatically this year. In January, municipal unions and the city struck an agreement that will protect the drug plan in the foreseeable future. The pact also allowed for an expansion of other benefits during an era when many employers are cutting back. Under the multi-million-dollar agreement, the city and the municipal unions agreed to draw from a joint health insurance stabilization fund, which had built up tremendous reserves in recent years. The two-year agreement — which includes the greatest infusion of benefit funding in history — calls for the city to make two major payments of $175 per member and retiree for benefits. Protecting and improving union benefits Rx Savings Lower copayments or none at all for these drugs: Psychotropic Injectable Chemotherapy Asthma The city’s new PICA Drug Program resulted from a major agreement with municipal unions earlier this year. Though the city administers the benefit, members continue to use their union-provided NPA drug card at pharmacies to obtain the four medications. Generics in these categories are free. Brand name asthma and chemotherapy medicines are free. For brand name psychotropic and injectable drugs, the copayment is $6 for 30-day supply at a pharmacy, $12 for 90-day supply by mail. In addition, beginning June 30, 2002, the city’s regular annual payment to union welfare funds will rise by $200 per member and retiree. The prescription plan will also save millions of dollars each year because the city has agreed to cover psychotropic, injectable, chemotherapy and asthma drugs through the new PICA program. The expanded funding enabled the DC Health and Security Plan to provide substantial increases in dental reimbursements effective Oct. 1 and resulted in other key health benefit improvements. These included unlimited in-network coverage in the GHI mental health program; a new HIP in-patient alcohol and substance abuse rehabilitation program; a national panel of GHI doctors and an improved fee structure for GHI physicians in Manhattan. The accord also allows workers to participate in the state’s college savings program through payroll deductions. Next year, employees will be able to have 401(k) accounts. A bulk purchasing program for computers and possibly other big-ticket items will be set up.