Employer News - Fall 2008

1199SEIU Family of Funds 330 West 42nd Street New York, NY 10036-6977

First Class U.S. Postage PAID New York, NY Permit No. 3700

Fall 2008

In this issue you’ll read

LETTER FROM THE EXECUTIVE DIRECTORS

about how the effective cost controls in the National Benefit Fund

This issue of 1199SEIU Employer News highlights some of the work the 1199SEIU Family of Funds is involved in on many of the pressing issues facing the healthcare industry and its workers.

kept our 2007 trend well below the national average

IN THIS ISSUE . . .

National Benefit Fund Unveils 2.2% Cost Trend Well Below National Average and Inflation . . . 2 Obama Senior Healthcare Advisor Is Keynote Speaker for Annual Trustee Meeting . . . . . . . . . . . . . . 3 Strategic Support Division Streamlines Operations and Improves Our Funds’ Delivery of Services . . . . . . . . . . . . . . . . . . 3 1199SEIU Training and Employment Funds Host Statewide Conference on Nursing Shortage . . . . . . . . 4-5

In this issue you’ll read about how the effective cost controls in the National Benefit Fund kept our 2007 trend well below the national average – and even below inflation for the first time – after taking into account the results of the new cost-savings programs. You’ll also read about the ways that the Strategic Support Division is streamlining our administrative functions across the Benefit, Pension, Training and Employment and Child Care Funds.

We’ll give you a look into the 1199SEIU Training and Employment Funds’ work toward responding to the statewide nursing shortage.

You’ll see how the Child Care Fund is making it easier for your employees to register for the many valuable child care programs that we provide, and how the 1199SEIU Child Care Corporation’s Annual “Care for Kids” Gala has benefited so many working parents and their children by providing funding to expand many of these programs.

We hope you find this newsletter informative, and as always, we welcome your feedback. We’re looking forward to continuing our successful partnership with you to strengthen the workforce, our institutions and the quality of patient care.

1199SEIU Employer Child Care Corporation’s “Care for Kids” Gala Provides Funding for 2008 Programs . . . . . . . . . . . . . . . 6 Child Care Registration Is Open Through October 31 . . . . . . . . . . . 8

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Executive Director Training and Employment Funds

Vivian Fox Executive Director Child Care Funds

At Annual Trustees Meeting, 1199SEIU National Benefit Fund Unveils 2.2% Cost Trend Well Below National Average and Inflation Each year the Trustees of the eight 1199SEIU Benefit and Pension Funds meet to review the performance of the Funds and to map out the direction and goals for the years ahead. This year, despite the continued rising costs of health coverage and a difficult economic climate, the Funds were able to report on our successes in preserving benefits and keeping costs far below national averages.

The Bottom Line Our administrative practices and ongoing costsavings programs have had a tremendous impact on controlling healthcare spending in the National Benefit Fund. The impact can be seen in our cost trends. Between 2006 and 2007, the cost trend for the National Benefit Fund started at an already impressive 4.6%, just over half of the national average of 8.4%.* But the impact

Savings Programs Cut 2007 Costs Both the original 2004 cost-saving programs and newer 2007 initiatives, including preferred radiology and laboratory providers, prior authorization for high-end imaging, a maintenance drug access program and new Preferred Drug List, exceeded projections. These programs have saved the Benefit Funds $261 million to date – $189.1 million for the National Benefit Fund alone. of our new cost-saving programs, reported in the last employer newsletter, brought it down even further, to only 2.2%.

So, while the average cost to cover a family of four in New York City last year was among the highest in the nation – $16,542 per year, or 14% above the national average – we were able to cover our members for far less. In a comparable analysis performed by the Fund’s actuaries, the National Benefit Fund provided coverage for a family of four during 2007 for only $11,269. Of course, our actual per member cost is even lower at $9,083, because it includes both single members and all sizes of families.

Child Care Registration Is Open Through October 31 Members Can Register Online or in Person at Any Convenient Location In order to accommodate as many members as possible who wish to register for next year’s child care programs, the Child Care Fund is offering multiple registration options and locations through October 31st. Members can register at Fund offices and worksites around New York City during extended hours, or register conveniently online. These expanded services, built around healthcare workers’ schedules, make it easy for 1199SEIU members to access the services and programs your contributions pay for.

At onsite registration, parents can learn about services offered by the Fund’s Child Care Resource & Referral Services (CCR&R) and get more information on other programs, like upcoming parenting seminars. Members who are not able to register in person can simply visit the Fund’s website, www.1199SEIUFunds.org, to register online and to access a step-by-step tutorial of the online application process.

To register, members simply need to bring a completed application and the required documents (a list is available online at www.1199SEIUFunds.org) to a registration site. All eligible members received registration packets, including the application, during August. If your Human Resources department would like extra copies of the application, registration materials or a list of your eligible employees, contact the Child Care Fund at (212) 564-2220.

Registration Sites Where Members Live and Work Main Child Care Fund Offices 330 West 42nd Street, 18th Floor Manhattan Monday – Wednesday 8:30 am – 6:00 pm Thursday – Friday 8:30 am – 8:00 pm Saturday 10:00 am – 4:00 pm Onsite registration will also be available at the following locations: • • • •

Albany Bronx Brooklyn Hicksville

• Queens • Rochester • Staten Island • White Plains

For location details or to register online, members can visit www.1199SEIUFunds.org.

As a result of the cost-savings programs, plus our existing lean administration and efficiencies, we are able to continue providing our 155,000 1199SEIU healthcare workers and retirees in the National Benefit Fund and their 143,000 family members with comprehensive healthcare with no deductibles and virtually no co-pays more cost-effectively than comparable plans and payers nationwide. *Milliman Medical Index, 2007 2 EMPLOYER NEWS Fall 2008

Fall 2008 EMPLOYER NEWS 7

1199SEIU Employer Child Care Corporation’s “Care for Kids” Gala Provides Funding for 2008 Programs The 1199SEIU Employer Child Care Corporation (CCC) is gearing up for the third annual “Care for Kids” Gala. The gala’s mission is to raise money to support affordable child care programs for lowincome families who live in the communities that our institutions serve, but who do not have the collectively-bargained child care benefits that most of our members enjoy. In just two years, the gala has grown with an attendance of nearly 400, raising close to $400,000 last year.

healthcare affordable and protecting the public’s health – goals very much in line with New York’s healthcare industry.

Dr. Cutler is also a strong believer in preventive care, including the same type of wellness initiatives the National Benefit Fund offers through the Protecting Our Health program, which is reaching out to greater numbers of members to help them manage costly chronic conditions and encourage healthy living habits.

Strategic Support Division Streamlines Operations and Improves Our Funds’ Delivery of Services The Benefit and Pension Funds’ Annual Trustees meeting also featured the first progress report from the Strategic Support Division. Mandated by the Trustees in October 2006, this cross-funds initiative consolidates the administrative operations of the Benefit and Pension Funds, Training and Employment Funds and Child Care Funds under the National Benefit Fund to reduce duplication of work, implement new controls and improve our workflow and the efficiency with which we deliver our services.

The CCC was also able to offer more scholarship funding for other families in need. Families were awarded scholarships to attend summer camp, enabling them to send their children to six- to eight-week sleep-away camps.

Finally, the CCC provided seed money for an endowment fund for the Future of America Learning Centers, which provide accredited, highquality early childhood education and development with trained and licensed staff, to ensure their sustainability.

6 EMPLOYER NEWS Fall 2008

The Trustees were honored this year to have Democratic presidential candidate Barack Obama’s senior healthcare policy advisor, Dr. David Cutler, as our keynote speaker. Dr. Cutler shared his own and Senator Obama’s ideas for healthcare reform and had the opportunity to hear the concerns of our industry leaders.

During his keynote address, he outlined Senator Obama’s three points for reform: ensuring coverage for all Americans, making

As a result of the 2006 and 2007 galas, the 1199SEIU Employer Child Care Corporation was able to provide subsidies to home care workers and other members who formerly received them through the Temporary Assistance for Needy Families (TANF) grant.

This year’s event is expected to be the most successful yet. With the funds raised in 2008, the CCC plans to provide more financial incentives to working families to enable them to take advantage of program offerings. In addition, the Child Care Corporation plans to support the next generation of 1199SEIU members by expanding the nursing track to increase awareness of opportunities in the healthcare field and support young people interested in entering the profession.

Obama Senior Healthcare Advisor Is Keynote Speaker for Annual Trustee Meeting

Keep an eye out for your invitation to the 2008 CCC Gala. You can also get more information about supporting the Child Care Corporation by calling (718) 562-2915 or by visiting www.1199SEIUFunds.org.

The Division brings together the Finance, Information Technology, Information Security, Human Resources, Facilities Management, Legal Operations and Eligibility functions of all of our Funds to share resources and streamline operations. Since its inception, the Strategic Support Division has focused on three main objectives. First, it has expanded National Benefit Fund administrative services to the Training and Employment Funds and Child Care Funds; second, it has improved and enhanced the administrative services that currently serve all of the Funds; and finally, it has added new services to improve efficiencies, accountability and oversight.

Look for more details on our achievements so far in the next edition of 1199SEIU Employer News.

Since its inception, the Strategic Support Division has focused on three main objectives. First, it has expanded National Benefit Fund administrative services to the Training and Employment Funds and Child Care Funds; second, it has improved and enhanced the administrative services that currently serve all of the Funds; and finally, it has added new services to improve efficiencies, accountability and oversight.

Fall 2008 EMPLOYER NEWS 3

1199SEIU Training and Employment Funds Host Statewide Conference on Nursing Shortage In the last four years 45 new employers in upstate New York joined the Training and Employment Funds (TEF), including major medical systems in Buffalo, Rochester and

The conference participants discussed the critical issues facing New York state in

Syracuse. This geographic expansion has given TEF a platform to address critical workforce issues on a statewide basis. In July 2008 TEF sponsored its first statewide conference, “Responding to the Nursing Shortage – Creative Practice and Partnerships in New York State,” bringing together representatives from CUNY and SUNY schools, hospital and

addressing the nursing shortage and explored best practices which have the potential to be adopted statewide.

1199SEIU leaders, TEF staff and representatives of the New York state Departments of Health and Labor.

The conference participants discussed the critical issues facing New York state in addressing the nursing shortage and explored best practices which have the potential to be adopted statewide.

Three panels explored different aspects of the problem. In Challenges/Barriers to Incumbent Workers Becoming RNs, a panel explored some of the Training and Employment Funds’ programs that help students successfully return to school and succeed in college and nursing programs.

College Prep prepares students that need academic support to pass the CUNY entrance exam. HC4 (Health Care College Core Curriculum) provides a supported entry into college where students take prerequisites in cohort classes with other 1199SEIU members. HC4 has a retention rate of greater than 95%, which is outstanding for a college program of working adults. Other successful programs include provision of stipends to support students in the clinical phase of the nursing program and 4 EMPLOYER NEWS Fall 2008

capacity is a major barrier since many students are turned away because of insufficient places. The 1199SEIU RN Training and Job Security Fund (RNTJSF) is supporting current RNs to earn MSNs with a minor in education; over 100 RNs have graduated and are working part-time as adjunct faculty and clinical instructors. CUNY’s Distinguished Lecturer Program provides part-time faculty positions for up to five years for nurses as they continue to work in their institution.

Rick Cook, Deputy Director of the Office of Health Systems Management for the New York state Department of Health, was a luncheon speaker and commended the Funds for creating a platform to develop statewide strategies to address the nursing shortages.

NCLEX prep classes. The Funds have a 100% NCLEX pass rate for nursing graduates supported by TEF funding.

The panel on Enhancing the Clinical Experience of Nursing Students shared some of the healthcare partnerships that are geared toward improving the clinical portion of nursing education so that graduates are able to meet the rigorous demands of the workplace. These programs are aimed at: (1) reducing the amount of time hospitals spend on orienting new nurses, and (2) retaining new nurses. Models presented included internships during the summer, creation of student-centered units where an entire hospital unit is dedicated to clinical instruction, and partnering of new nurses with designated mentors or other well-trained, experienced nurses.

A third panel, Ways to Help Create More Nurse Faculty, presented two programs targeting ways to create more nursing faculty through helping nurses earn advanced degrees and/or collaborating with hospitals to share staff. Nursing program

For more information about the Training and Employment Funds’ programs, visit www.1199SEIUFunds.org or contact Executive Director Deborah King at (212) 494-0524.

Fall 2008 EMPLOYER NEWS 5

1199SEIU Training and Employment Funds Host Statewide Conference on Nursing Shortage In the last four years 45 new employers in upstate New York joined the Training and Employment Funds (TEF), including major medical systems in Buffalo, Rochester and

The conference participants discussed the critical issues facing New York state in

Syracuse. This geographic expansion has given TEF a platform to address critical workforce issues on a statewide basis. In July 2008 TEF sponsored its first statewide conference, “Responding to the Nursing Shortage – Creative Practice and Partnerships in New York State,” bringing together representatives from CUNY and SUNY schools, hospital and

addressing the nursing shortage and explored best practices which have the potential to be adopted statewide.

1199SEIU leaders, TEF staff and representatives of the New York state Departments of Health and Labor.

The conference participants discussed the critical issues facing New York state in addressing the nursing shortage and explored best practices which have the potential to be adopted statewide.

Three panels explored different aspects of the problem. In Challenges/Barriers to Incumbent Workers Becoming RNs, a panel explored some of the Training and Employment Funds’ programs that help students successfully return to school and succeed in college and nursing programs.

College Prep prepares students that need academic support to pass the CUNY entrance exam. HC4 (Health Care College Core Curriculum) provides a supported entry into college where students take prerequisites in cohort classes with other 1199SEIU members. HC4 has a retention rate of greater than 95%, which is outstanding for a college program of working adults. Other successful programs include provision of stipends to support students in the clinical phase of the nursing program and 4 EMPLOYER NEWS Fall 2008

capacity is a major barrier since many students are turned away because of insufficient places. The 1199SEIU RN Training and Job Security Fund (RNTJSF) is supporting current RNs to earn MSNs with a minor in education; over 100 RNs have graduated and are working part-time as adjunct faculty and clinical instructors. CUNY’s Distinguished Lecturer Program provides part-time faculty positions for up to five years for nurses as they continue to work in their institution.

Rick Cook, Deputy Director of the Office of Health Systems Management for the New York state Department of Health, was a luncheon speaker and commended the Funds for creating a platform to develop statewide strategies to address the nursing shortages.

NCLEX prep classes. The Funds have a 100% NCLEX pass rate for nursing graduates supported by TEF funding.

The panel on Enhancing the Clinical Experience of Nursing Students shared some of the healthcare partnerships that are geared toward improving the clinical portion of nursing education so that graduates are able to meet the rigorous demands of the workplace. These programs are aimed at: (1) reducing the amount of time hospitals spend on orienting new nurses, and (2) retaining new nurses. Models presented included internships during the summer, creation of student-centered units where an entire hospital unit is dedicated to clinical instruction, and partnering of new nurses with designated mentors or other well-trained, experienced nurses.

A third panel, Ways to Help Create More Nurse Faculty, presented two programs targeting ways to create more nursing faculty through helping nurses earn advanced degrees and/or collaborating with hospitals to share staff. Nursing program

For more information about the Training and Employment Funds’ programs, visit www.1199SEIUFunds.org or contact Executive Director Deborah King at (212) 494-0524.

Fall 2008 EMPLOYER NEWS 5

1199SEIU Employer Child Care Corporation’s “Care for Kids” Gala Provides Funding for 2008 Programs The 1199SEIU Employer Child Care Corporation (CCC) is gearing up for the third annual “Care for Kids” Gala. The gala’s mission is to raise money to support affordable child care programs for lowincome families who live in the communities that our institutions serve, but who do not have the collectively-bargained child care benefits that most of our members enjoy. In just two years, the gala has grown with an attendance of nearly 400, raising close to $400,000 last year.

healthcare affordable and protecting the public’s health – goals very much in line with New York’s healthcare industry.

Dr. Cutler is also a strong believer in preventive care, including the same type of wellness initiatives the National Benefit Fund offers through the Protecting Our Health program, which is reaching out to greater numbers of members to help them manage costly chronic conditions and encourage healthy living habits.

Strategic Support Division Streamlines Operations and Improves Our Funds’ Delivery of Services The Benefit and Pension Funds’ Annual Trustees meeting also featured the first progress report from the Strategic Support Division. Mandated by the Trustees in October 2006, this cross-funds initiative consolidates the administrative operations of the Benefit and Pension Funds, Training and Employment Funds and Child Care Funds under the National Benefit Fund to reduce duplication of work, implement new controls and improve our workflow and the efficiency with which we deliver our services.

The CCC was also able to offer more scholarship funding for other families in need. Families were awarded scholarships to attend summer camp, enabling them to send their children to six- to eight-week sleep-away camps.

Finally, the CCC provided seed money for an endowment fund for the Future of America Learning Centers, which provide accredited, highquality early childhood education and development with trained and licensed staff, to ensure their sustainability.

6 EMPLOYER NEWS Fall 2008

The Trustees were honored this year to have Democratic presidential candidate Barack Obama’s senior healthcare policy advisor, Dr. David Cutler, as our keynote speaker. Dr. Cutler shared his own and Senator Obama’s ideas for healthcare reform and had the opportunity to hear the concerns of our industry leaders.

During his keynote address, he outlined Senator Obama’s three points for reform: ensuring coverage for all Americans, making

As a result of the 2006 and 2007 galas, the 1199SEIU Employer Child Care Corporation was able to provide subsidies to home care workers and other members who formerly received them through the Temporary Assistance for Needy Families (TANF) grant.

This year’s event is expected to be the most successful yet. With the funds raised in 2008, the CCC plans to provide more financial incentives to working families to enable them to take advantage of program offerings. In addition, the Child Care Corporation plans to support the next generation of 1199SEIU members by expanding the nursing track to increase awareness of opportunities in the healthcare field and support young people interested in entering the profession.

Obama Senior Healthcare Advisor Is Keynote Speaker for Annual Trustee Meeting

Keep an eye out for your invitation to the 2008 CCC Gala. You can also get more information about supporting the Child Care Corporation by calling (718) 562-2915 or by visiting www.1199SEIUFunds.org.

The Division brings together the Finance, Information Technology, Information Security, Human Resources, Facilities Management, Legal Operations and Eligibility functions of all of our Funds to share resources and streamline operations. Since its inception, the Strategic Support Division has focused on three main objectives. First, it has expanded National Benefit Fund administrative services to the Training and Employment Funds and Child Care Funds; second, it has improved and enhanced the administrative services that currently serve all of the Funds; and finally, it has added new services to improve efficiencies, accountability and oversight.

Look for more details on our achievements so far in the next edition of 1199SEIU Employer News.

Since its inception, the Strategic Support Division has focused on three main objectives. First, it has expanded National Benefit Fund administrative services to the Training and Employment Funds and Child Care Funds; second, it has improved and enhanced the administrative services that currently serve all of the Funds; and finally, it has added new services to improve efficiencies, accountability and oversight.

Fall 2008 EMPLOYER NEWS 3

At Annual Trustees Meeting, 1199SEIU National Benefit Fund Unveils 2.2% Cost Trend Well Below National Average and Inflation Each year the Trustees of the eight 1199SEIU Benefit and Pension Funds meet to review the performance of the Funds and to map out the direction and goals for the years ahead. This year, despite the continued rising costs of health coverage and a difficult economic climate, the Funds were able to report on our successes in preserving benefits and keeping costs far below national averages.

The Bottom Line Our administrative practices and ongoing costsavings programs have had a tremendous impact on controlling healthcare spending in the National Benefit Fund. The impact can be seen in our cost trends. Between 2006 and 2007, the cost trend for the National Benefit Fund started at an already impressive 4.6%, just over half of the national average of 8.4%.* But the impact

Savings Programs Cut 2007 Costs Both the original 2004 cost-saving programs and newer 2007 initiatives, including preferred radiology and laboratory providers, prior authorization for high-end imaging, a maintenance drug access program and new Preferred Drug List, exceeded projections. These programs have saved the Benefit Funds $261 million to date – $189.1 million for the National Benefit Fund alone. of our new cost-saving programs, reported in the last employer newsletter, brought it down even further, to only 2.2%.

So, while the average cost to cover a family of four in New York City last year was among the highest in the nation – $16,542 per year, or 14% above the national average – we were able to cover our members for far less. In a comparable analysis performed by the Fund’s actuaries, the National Benefit Fund provided coverage for a family of four during 2007 for only $11,269. Of course, our actual per member cost is even lower at $9,083, because it includes both single members and all sizes of families.

Child Care Registration Is Open Through October 31 Members Can Register Online or in Person at Any Convenient Location In order to accommodate as many members as possible who wish to register for next year’s child care programs, the Child Care Fund is offering multiple registration options and locations through October 31st. Members can register at Fund offices and worksites around New York City during extended hours, or register conveniently online. These expanded services, built around healthcare workers’ schedules, make it easy for 1199SEIU members to access the services and programs your contributions pay for.

At onsite registration, parents can learn about services offered by the Fund’s Child Care Resource & Referral Services (CCR&R) and get more information on other programs, like upcoming parenting seminars. Members who are not able to register in person can simply visit the Fund’s website, www.1199SEIUFunds.org, to register online and to access a step-by-step tutorial of the online application process.

To register, members simply need to bring a completed application and the required documents (a list is available online at www.1199SEIUFunds.org) to a registration site. All eligible members received registration packets, including the application, during August. If your Human Resources department would like extra copies of the application, registration materials or a list of your eligible employees, contact the Child Care Fund at (212) 564-2220.

Registration Sites Where Members Live and Work Main Child Care Fund Offices 330 West 42nd Street, 18th Floor Manhattan Monday – Wednesday 8:30 am – 6:00 pm Thursday – Friday 8:30 am – 8:00 pm Saturday 10:00 am – 4:00 pm Onsite registration will also be available at the following locations: • • • •

Albany Bronx Brooklyn Hicksville

• Queens • Rochester • Staten Island • White Plains

For location details or to register online, members can visit www.1199SEIUFunds.org.

As a result of the cost-savings programs, plus our existing lean administration and efficiencies, we are able to continue providing our 155,000 1199SEIU healthcare workers and retirees in the National Benefit Fund and their 143,000 family members with comprehensive healthcare with no deductibles and virtually no co-pays more cost-effectively than comparable plans and payers nationwide. *Milliman Medical Index, 2007 2 EMPLOYER NEWS Fall 2008

Fall 2008 EMPLOYER NEWS 7

1199SEIU Family of Funds 330 West 42nd Street New York, NY 10036-6977

Non-Profit U.S. Postage PAID New York, NY Permit No. 3700

Fall 2008

In this issue you’ll read

LETTER FROM THE EXECUTIVE DIRECTORS

about how the effective cost controls in the National Benefit Fund

This issue of 1199SEIU Employer News highlights some of the work the 1199SEIU Family of Funds is involved in on many of the pressing issues facing the healthcare industry and its workers.

kept our 2007 trend well below the national average

IN THIS ISSUE . . .

National Benefit Fund Unveils 2.2% Cost Trend Well Below National Average and Inflation . . . 2 Obama Senior Healthcare Advisor Is Keynote Speaker for Annual Trustee Meeting . . . . . . . . . . . . . . 3 Strategic Support Division Streamlines Operations and Improves Our Funds’ Delivery of Services . . . . . . . . . . . . . . . . . . 3 1199SEIU Training and Employment Funds Host Statewide Conference on Nursing Shortage . . . . . . . . 4-5

In this issue you’ll read about how the effective cost controls in the National Benefit Fund kept our 2007 trend well below the national average – and even below inflation for the first time – after taking into account the results of the new cost-savings programs. You’ll also read about the ways that the Strategic Support Division is streamlining our administrative functions across the Benefit, Pension, Training and Employment and Child Care Funds.

We’ll give you a look into the 1199SEIU Training and Employment Funds’ work toward responding to the statewide nursing shortage.

You’ll see how the Child Care Fund is making it easier for your employees to register for the many valuable child care programs that we provide, and how the 1199SEIU Child Care Corporation’s Annual “Care for Kids” Gala has benefited so many working parents and their children by providing funding to expand many of these programs.

We hope you find this newsletter informative, and as always, we welcome your feedback. We’re looking forward to continuing our successful partnership with you to strengthen the workforce, our institutions and the quality of patient care.

1199SEIU Employer Child Care Corporation’s “Care for Kids” Gala Provides Funding for 2008 Programs . . . . . . . . . . . . . . . 6 Child Care Registration Is Open Through October 31 . . . . . . . . . . . 8

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Executive Director Training and Employment Funds

Vivian Fox Executive Director Child Care Funds