FUND NEWS IS YOUR NEWS
By: Candice Stark, CEBS, Administrator
What the NOITU Insurance Trust Fund is doing to address the Patient Protection and Affordable Care Act
The Fund engaged a team of actuaries and attorneys to perform as study of the impact of the Patient Protection and Affordable Care Act (ACA) on the Plan, its participants and employers. One of the goals of the study was to answer the following critical questions:
Do the present plan design options currently offered by the Fund meet the requirements of the ACA?
If not, what changes are necessary to meet the requirements?
The Fund’s Comprehensive Plan meets the requirements for qualified coverage and provides the “Platinum” level of benefits (90% actuarial value).
The Fund’s Basic Plan and Medical/Dental Center Plan do not meet the requirements for qualified coverage. These plans provide less than the required “Bronze” level of benefits (60% actuarial value).
In response to the above, the Fund, with the assistance of their actuaries and attorneys, has developed three additional levels of coverage as follows:
Gold Plan – Plan that has an actuarial value of 80%. This plan offers benefits similar to the present Comprehensive “Platinum” level plan, however it is less costly as a result of higher deductibles, coinsurance and copays.
Silver Plan – Plan that has an actuarial value of 70%. This plan is similar to the Gold Plan, however it is less costly still, with higher deductibles, coinsurance and copays.
Bronze Plan – Plan that has an actuarial value of 60%. This plan offers the lowest level of benefits, while still meeting the requirements of ACA. It is the least expensive option, with the highest deductibles, coinsurance and copays.
What does this mean to you and your coverage?
If you are presently covered under the Fund’s Comprehensive Plan, rest assured that your health coverage not only meets the requirements of ACA, but is deemed to be a Platinum Plan. It is the best health coverage plan available through the Fund at the present time, and compares with the highest level health insurance plans being offered through most major insurance companies.
If you are presently covered under the Fund’s Basic Plan, you will be transferred to the Bronze Plan, no later than January 1, 2014, in order to be in compliance with ACA.
If you are presently covered under the Fund’s Medical/Dental Center Plan, we have already contacted your employer to gather data in an effort to assist with decision making necessary to meet the upcoming health care challenges. Your Union Representative will be meeting with your employer to negotiate the benefit package in the Collective Bargaining Agreement, in order to be in compliance by January 1, 2014.
If you have any questions or concerns regarding your present level of benefits, please contact your Union Representative.