Update about the changes to healthcare costs in FY2024-25. The $25 per month surcharge to Moda and Kaiser standard plants is not ideal, unfortunately, this was the best option of two bad options for the biggest number of CPPW members.
Labor Management Benefits Committee (LMBC) worked on the benefits plan for how to absorb the double-digit increases for the self-insured (Moda) and Kaiser plans, 11.9 and 14.1 percent increases, respectively. The LMBC was unable to come to consensus on a path forward leaving. The City proposed making adjustments to control their own costs by shifting more of the costs on to members through increased costs, increased deductibles, larger copays, and much higher out of pocket maximums.
Labor rallied together to mitigate costs to members and changes to healthcare coverage.
CPPW presented information about this healthcare change during the April 2024 general membership meeting. The City required all labor unions to sign on to the FY2024-25 surcharge in order to avoid potentially much larger and certainly more ambiguous changes to the healthcare coverage for City employees. CPPW leadership put the proposal for a $25 a month healthcare surcharge to a vote of the general membership at the April 2024 general membership meeting. General membership voted to approve signing the letter agreeing to the surcharge.
Next Steps
The LMBC will convene beginning in May 2024 to work to understand healthcare cost increases, mitigate costs while maintaining high quality, accessible, comprehensive healthcare coverage for members. Beginning this process now means we will have more time to develop strategies for addressing the healthcare cost crisis.