PLAIN DEALER UNIT HEALTH-CARE FUND INFO

1. Health-Care Costs / Current Status

• Costs are out of control.
• Workers are paying 50% more in premiums than they were only 3 years ago.
• Average premium share by employee is 22% (along with larger deductible and co-pay).

2. Our Situation

• 2002 loss: $272,061
• 2003 loss: $329,926
• 2004 loss: $395,000 (projected), which equates to $102.57 loss per employee per month.

Projection: If we leave fund and benefits at current levels, fund would be insolvent by July 2005.

3. How Did This Happen?

• Health-care costs are rising 6 times the rate of
inflation per year.
• Drug costs are rising 15 times the rate of inflation.
• Price gouging by insurance and drug companies; higher levels of usage; no proposed control
by the government.

4. Alternatives Considered

• Significant design changes in health plan.
• Allocation of wage increase on November 1 to health-and-welfare fund.
• We are awaiting actual valuation of fund and cost savings generated by changes in the design of the plan.

5. Recommendation

• Await final valuation of cost savings generated by each change in plan design.
• Plan on allocating wage increase toward health-and-welfare plan. (In addition to employer's mandated increase.)

6. Where Do We Go From Here?

• Contract negotiations for successor contract,
February 2006.
• Focus must be on health care, pension fund and wages.
• Help build the Guild by mobilizing and participating.