New "Service-Based" Subsidy For Retiree Medical Coverage
A Message From the Board of Trustees
The last issue of Carpenters Care discussed the inflationary factors that continue to drive medical costs upward. These factors affect both working and retired carpenters and their families. This issue of Carpenters Care describes an important change to the monthly contribution rates for retiree coverage made necessary by these inflationary factors. Effective January 1, 2004, the monthly contribution rate for retiree coverage will increase. This rate increase will be accompanied by a new “service-based” subsidy that reduces the actual cost of retiree medical coverage by an amount that is based on the total number of hours a retiree worked under the Carpenters Health and Security Plan of Western Washington prior to his or her retirement. In general, the more hours a retiree worked under this plan, the greater his or her subsidy.
This article describes the new“service-based” subsidy and how it affects those of you who are already retired, as well as those of you who are still working. A follow-up letter will be mailed to each of you who are currently covered under the Carpenters Health and Security Plan – For Retired Carpenters. This letter will provide you with the total number of hours you worked under the Carpenters Health and Security Plan, your subsidy level based on those hours of work, and your new monthly contribution rate effective in December 2003 for January 2004 coverage. If, after receiving the follow-up letter, you have any questions about the new “service-based” subsidy, please contact the Eligibility Department at the Trust Office.