Local Union 50 2002 Negotiations
Benefit Plans to be effective January 1, 2003
This document is an overview of the plans. It does not provide all details about the program.
Select a topic to jump to a specific area:
This chart contains the key features of the PPO Medical Plan for 2003.
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Medical Plan
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| Feature | In-Network Provider | Out-of-Network Provider |
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Annual Deductible (2)
|
$285 |
|
|
Out-of-Pocket Maximum
|
$700 |
$1,400 |
| Lifetime Maximum Benefit | $2,000,000 | |
| Participant Coinsurance Medical Care, including Mental health |
20% |
40% |
| Preventive Care (3) | $10 copay for generalist; $20 copay for specialist. (4) | NA |
| Chiropractic | 20% | 40% |
| Maximum benefit $500 per person per year. | ||
|
Prescription Drug
|
$14 generic/$30 brand |
|
| 1) If you live
outside the network's geographic area, your benefits will be provided at
the in-network level. 2) Each covered person is subject to the individual deductible until the family deductible is met. Once the combined deductibles for all individuals equal the family deductible amount, no further deductible needs to be met for the year. No family member pays more than the individual deductible in any calendar year. 3) To be eligible for preventive care benefits, in-network participants must receive these services from PPO providers. If you reside within the network and elect out-of-network providers for preventive care, no benefits will be payable. Participants who live outside the network's geographic area may receive these services from PPO and non-PPO providers. 4) Generalists include family, general practice, internal medicine, obstetrics, gynecology, or pediatric physicians. All other providers, including physician specialists, chiropractors, occupational/ physical therapists are categorized as specialists. 5) Generic substitution is required unless the doctor indicates "dispense as written" or the participant pays additional cost for brand name version. |
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Monthly Employee Contribution Rates
The actual employee rates for 2003 are:
Employee Only 41.11
Employee + Child(ren) 82.24
Employee + Spouse 98.68
Employee + Family 135.69
Employee contributions equal 25% of the total projected monthly rate for each
year beginning 1/1/04.
Well baby care: when care is received in-network, Well Baby benefits include coverage for routine care, screenings, checkups, and immunizations for your child through age 6. These services are based on the recommendations of the American Academy of Pediatrics, and include the following: complete physical examinations, developmental assessment and guidance; immunizations such as diphtheria, tetanus, pertussis (DTP), polio, measles, mumps, rubella (MMR), hemophilus vaccine (HIB), hepatitis B, varicella virus (chicken pox) vaccine, pneumococcal conjugate vaccine, and other immunizations as may be prescribed by the Commissioner of Health; and certain laboratory and screening tests, including hearing and vision tests required for preschool physical exam. The American Academy of Pediatrics recommends the following schedule for well child care visits:
|
Birth |
4 months |
12 months | 2 years | 5 years | |
| 2-4 weeks | 6 months | 15 months | 3 years | 6 years | |
| 2 months | 9 months | 18 months | 4 years | ||
Routine wellness care: for covered members age 7 and older, in-network benefits are provided for an annual checkup, routine laboratory and radiological services, immunizations, and colorectal cancer screenings. This allows you and your doctor to choose the routine care services that you and covered family members need most. Wellness coverage includes: an annual gynecological exam and Pap test including coverage for annual testing performed by any FDA-approved gynecologic cytology screening technologies; one baseline mammography screening for patients ages 35-39, and annual mammography screening for patients age 40 or older; prostate exams (digital rectal exams) and an annual Prostate Specific Antigen test for male enrollees ages 40 and older; and colorectal cancer screenings such as: an annual fecal occult blood test; flexible sigmoidoscopy; colonoscopy; or barium enema. These services will be provided in accordance with the age, family history, and frequency recommendations of the American College of Gastroenterology, in consultation with the American Cancer Society. The Plan also provides a $150 benefit per calendar year for additional routine immunizations and tests (including lab work and x-rays) for each covered participant.
Diabetic supplies, equipment, and outpatient self-management training and education: medical supplies, and equipment for diabetes care for all diabetics. This includes insulin pumps; home glucose blood monitors; hypodermic needles and syringes. Diabetic supplies are covered under the medical equipment benefit. Outpatient, self-management training and education, including medical nutrition therapy, for the treatment of insulin-dependent diabetes, insulin-using diabetes, gestational diabetes and noninsulin-using diabetes, if provided by a certified registered or licensed health care professional with expertise in diabetes.
Ambulance travel: professional ambulance services to or from the nearest facility or provider adequate to treat your condition.
Indexing: deductibles and out-of-pocket maximums for both the medical and prescription drug benefits will be adjusted each year based on the increase in the Medical Consumer Price Index. Increases will be limited to 5% per year.
Prescription drug copays after 2003 are as follows:
|
Year |
Retail | Mail Order | ||
| Generic | Brand | Generic | Brand | |
| 2004 | $8 | $17 | $16 | $34 |
| 2005 | $9 | $19 | $18 | $38 |
| 2006 | $10 | $21 | $20 | $42 |
| 2007 | $11 | $23 | $22 | $46 |
Deductible: $25 per person/$75 maximum per family. Applies to both the Standard and Network benefit. The deductible does not apply to preventive care.
Standard:
Network:
Maximum Benefits (all plans):
Monthly Employee Contribution Rates
The actual employee rates for 2003 are:
| Employee Only | 7.04 |
| Employee + Child(ren) | 18.25 |
| Employee + Spouse | 14.20 |
| Employee + Family | 22.91 |
Employee contributions equal 25% of the total projected monthly rates for each year beginning 1/1/04.
Separate election from medical.
The Plan pays up to the following scheduled amounts every 24 months. If you have a significant change in prescription, or if you now have single vision lenses and bifocals are prescribed, the Plan will pay the maximum allowance for the exam and lenses even if your existing lenses are less than 24 months old and it has been less than 24 months since your last eye exam. A change in prescription is considered significant if an axis changes by at least 20 degrees or if there is a sphere or cylinder change of at least .5 diopters. Also, if you need only one lens, 50% of the lens benefit will be paid. This schedule of benefits provides for exams more frequently than recommended by the American Academy of Ophthalmology and the American Optometric Association.
Effective 1/1/03:
Effective 1/1/04:
Monthly Employee Contribution Rates
The actual employee rates for 2003 are:
| Employee Only | 1.00 |
| Employee + Child(ren) | 2.00 |
| Employee + Spouse | 2.25 |
| Employee + Family | 2.75 |
Employee contributions equal 50% of the total projected monthly rates for each year beginning 1/1/04.
Retain existing plan.
Spouse: $5,000, $10,000, $25,000, $50,000, and $100,000
Dependent life coverage for spouse cannot exceed 100% of the amount of employee
life insurance.
Evidence of insurability will be required if you elect coverage in excess of
$25,000.
Child(ren): $2,500, $5,000
Child(ren) coverage applies to each child, regardless of the number of children.
Contribution Rates will be set by the Insurance Company.
Retain existing plan.
No Dominion pension or SRA credits will accrue while on disability.
Flexible Spending Accounts provide a tax benefit by allowing employees to pay for certain health care and dependent day care out-of-pocket expenses with pre-tax dollars. All dollars in the account must be used each year. Employees must file claims by April 1 of the following year. Any unspent funds at year-end cannot be refunded or carried over to the next year (per IRS regulations).
Health Care Reimbursement Account:
Employee may contribute between $120 and $5,000 per year
Dependent Day Care Reimbursement Account:
Employee may contribute between $120 and $5,000 per year
Eligibility:
All regular full-time employees scheduled to work or who actually work 1,000 hours per year and who are at least 18 years of age.
Allowable Employee Contributions:
2% - 50% of compensation on a pretax basis (10% for highly compensated employees)
2% - 20% of compensation on an after-tax basis
2% - 50% of compensation on a combination of pretax or after-tax basis (30%
for highly compensated employees)
Catch up contributions permitted.
Rollover contributions permitted.
Compensation is actual base pay received.
Allowable pretax contributions for highly and non-highly compensated employees are subject to change by the Company in order to comply with federal law and regulations.
Company Match
50% match (up to 3% of compensation).
Company match vests after 3 years of service or immediately upon retirement, disability or death. Company match invested in the Dominion Stock Fund.
Investment Funds
14 investment options. Investment funds for bargaining unit employees will at all times be the same as those in effect for Dominion Salaried employees.The company will monitor the performance of the funds and may add, delete or change funds from time to time.
Loans
Withdrawals
Fund Transfers
Distribution Options at Termination and Retirement
Miscellaneous
Retain existing plan with the following changes:
Employees retiring with at least 10 years of credited pension service will automatically receive life insurance in the amount of 50% of their base pay at the time of retirement, up to a maximum amount of $50,000. This coverage is provided at no cost to the retiree.
Coverage subject to imputed income rules.
Retirees with 10 or more years of pension service under the Retirement Plan are eligible for coverage under the Retiree Medical Plan. The Retiree Medical Plan is the same medical plan offered to retired salaried employees. Coverage is provided for retirees under the Retiree Medical Plan up to eligibility for Medicare. After eligibility for Medicare, the Retiree Medical Plan continues with a Medicare carve-out (coverage by a Medicare HMO is not required.) Contributions for retiree medical coverage are based on length of pension service. Before Medicare eligibility, retirees will pay 16.5% of the total cost of active salaried employees' medical coverage if they have 30 or more years of pension service. If pension service is less than 30 years, retirees will pay an additional 10% for each year of pension service less than 30. Following retirement, contributions will increase each January 1 by the Medical CPI, not to exceed 5% each year. After Medicare eligibility, contributions for the carve-out Plan will be one-half the pre-Medicare eligibility amount.
The company will contribute $1 million to the VEBA during January 2003, January 2004, January 2005, January 2006 and January 2007 ($5 million total). The Company agrees to restructure the VEBA so that the Company's sole responsibility would be to make contributions referenced herein and the Union will have all fiduciary, financial, and other responsibilities for the new VEBA. The restructuring is subject to legal approval by the Company and the approval of the existing VEBA fiduciaries as necessary to satisfy their fiduciary duties to the retirees covered by the VEBA. The Union agrees to provide the Company quarterly financial statements and annual audited financials for the new VEBA. To the extent that funds are available in the VEBA, such funds are used to pay the required retiree contributions. If funds from the VEBA are fully depleted, retirees will be required to make contributions in accordance with the applicable rate schedule.