Employer News - Summer 2007

Summer 2007

Together with our employers and the Union, we’re addressing the needs of the healthcare workforce – which helps us meet our shared goal of providing quality patient care.

LETTER FROM THE EXECUTIVE DIRECTORS No one understands the pressures of rising healthcare costs like those of you at the center of the industry. In this edition of 1199SEIU Employer News, you’ll read about the challenges that the Benefit Fund faces in providing high-quality, low-cost health coverage, and how we’re meeting that challenge. As outlined in the recent 1199SEIU/League Collective Bargaining Agreement, the Fund will begin a new series of cost-savings programs on October 1. These new initiatives will build on the Fund’s earlier costcontainment successes and at the same time support your workforce by ensuring the quality of care that your employees receive.

In this edition, you’ll also read about other ways that our Funds are strengthening the workforce and the industry. We continue to respond to the industry’s needs through services like the Training and Employment

IN THIS ISSUE . . .

New Cross-Funds Website Improves Service to You . . . . . . . . . . 2

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

Training and Employment Funds Upgrade Home Care Workers to Fill Critical Positions . . . . . . . . . . . 3 In the Face of Rising Healthcare Costs, New Collectively Bargained Cost Savings Will Save Dollars . . . . . 4 New Program Initiatives Ensure Quality Care While Keeping Expenses Low . . . . . . . . . . . . . . . . . 5

Funds’ program to upgrade home care workers to fill shortage positions in contributing institutions, and the Child Care Fund’s voucher reimbursement program that offers working parents flexible support to balance work and family responsibilities.

Together with our employers and the Union, we’re addressing the needs of the healthcare workforce – which helps us meet our shared goal of providing quality patient care.

Sincerely,

Voucher Program’s Flexible, Affordable Childcare Options Benefit Workers, Families and Employers . . . . . . . . . . 6 If You’ve Got Benefit and Pension Questions, We’ve Got Answers. . . . . 7

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Executive Director Training and Employment Funds

Vivian Fox Executive Director Child Care Funds

N E W C R O S S - F U N D S W E B S I T E I M P R O V E S S E R V I C E TO YO U

www.1199SEIUFunds.org Provides One-Stop Shopping for Employers, Members and Providers This July, the 1199SEIU Family of Funds is launching a new cross-funds website for members, employers and providers to access information about the full range of benefits that your contributions pay for through the Benefit and Pension, Training and Employment and Child Care Funds.

Similar to the Member Handbook that the Funds created last year, the new site will make it easier for members to understand and use their benefits. By simply entering their institution name into the Member Benefits Finder, your employees will be pointed directly toward the specific benefits that they are eligible for.

If You’ve Got Benefit and Pension Questions, We’ve Got the Answers We work hard to provide good customer service to 1199SEIU members – your employees – where they work and where they live. Our Benefit Fund Outreach Coordinators can assist them at the worksite and are also available, along with our member services representatives, by phone and in person at walk-in Member Services offices in New York City, New Jersey, Westchester and Long Island. You can also schedule a time for your Coordinator to come to your facility to answer questions or explain Fund benefits.

TO CONTACT THE OUTREACH COORDINATOR FOR YOUR INSTITUTION: Besides making it easier for your employees to find information about the benefits your contributions support, the site also includes a special section for employers.

Employers can use this area to download reporting and enrollment forms, find important benefit news and contact Fund representatives with any questions. In the coming months, the site will also have enhanced functionality to allow you to submit forms, reports and other information directly online.

Starting this July, log on to www.1199SEIUFunds.org for any questions about your employees’ health, pension, training and childcare benefits – all in one,

Outreach Department: (646) 473-6930

FOR MEMBERS: Member Services: (646) 473-9200 1199SEIU BENEFIT FUND SATELLITE OFFICES Office hours are 9 a.m. to 5 p.m.

Monday through Friday unless noted.

Main Benefit Fund Office 330 West 42nd Street (Between 8th and 9th Avenues) New York, NY 10036 (646) 473-9200 Bronx 2501 Grand Concourse, 3rd Floor Bronx, NY 10468 (718) 561-0234 Brooklyn 25 Elm Place (Lobby) Brooklyn, NY 11201 (718) 643-6726 Queens 97-45 Queens Blvd., 7th Floor Rego Park, NY 11374 (646) 473-8565

Staten Island 790 Port Richmond Ave. Staten Island, NY 10302 Mon. and Tues., 9 a.m. - 5 p.m.

Westbury 761 Merrick Ave. Westbury, NY 11590 (516) 229-6721 White Plains Berkley College Building 99 Church Street, 4th Floor White Plains, NY 10601 (914) 997-2811 New Jersey 555 Route 1 South, 3rd Floor Iselin, NJ 08830 Wed. and Thurs., 9 a.m. - 5 p.m.

Child Care Questions (212) 564-2220 Training and Employment Questions (212) 643-9340

easy on-line location.

2 EMPLOYER NEWS Summer 2007

Summer 2007 EMPLOYER NEWS 7

Voucher Program’s Flexible, Affordable Childcare Options Benefit Workers, Families and Employers

Training and Employment Funds Upgrade Home Care Workers to Fill Critical Positions in Participating Institutions

Balancing a job and family responsibilities is a challenge for any working parent. For healthcare workers who often work irregular shifts, finding quality, dependable childcare can be particularly stressful – and that can translate to higher absence rates and even affect patient care.

In response to the industry’s staffing needs, the Training and Employment Funds have created a specialized program focused on training and upgrading home care workers to fill Certified Nursing Assistant and Patient Care Associate positions in participating institutions. With $300,000 in support from the Robin Hood Foundation, the Funds are currently working to place 100 home care workers. This summer, the Funds will evaluate the program to make recommendations for expanding it further.

To address this need, the 1199SEIU Child Care Fund offers a voucher program that provides members with full or partial reimbursement for child care expenses. The vouchers are based on a sliding scale that takes into account members’ income, as well as the number of children in a family and the type of childcare they are receiving. In the years that the voucher program has been offered, it has rapidly become the Fund’s most popular and most frequently requested childcare benefit.

The flexibility of the voucher program makes it a unique service tailored to 1199SEIU members. For instance, members can either choose licensed day care providers on their own, or receive vouchers to cover the cost of babysitting services by a relative, friend or neighbor.

For the youngest children, newborn to five years old, parents can apply for a “Day Care” voucher that covers costs for full-time care.

Members with school-aged children between six and 12 can choose an “After School” voucher, which can be used for part-time care either before or after the school day, depending on the parents’ needs and work schedule. For children and youth from three 6 EMPLOYER NEWS Summer 2007

to 17, a “Summer Day Camp” voucher is available that covers an eight-week period during the summer. There are also special vouchers for parents of children with documented special needs.

Thanks to this flexible resource, working parents can feel confident that their children are getting the care they need, freeing workers to in turn provide quality care to their patients.

Drawing from the home care workforce to meet the needs of hospitals and nursing homes makes sense. Many of the home care workers in the program are immigrants who were either nurses or medical technicians in their own countries, with experience and skills that will be an asset to the field. And since 90% of the participants already speak a variety of languages including Mandarin, Cantonese, French Creole, Russian, Polish and Spanish, these workers will be a valuable resource for providing thorough, quality care to New York City’s diverse patient population. For instance, former home attendant Linda Chan, a graduate of a 2004 pilot program, was initially placed as a nursing attendant at Lutheran Medical Center, and has since received additional training and upgraded to Senior CNA. Her ability to speak four different Chinese dialects has made her an asset to her co-workers and improved patient care at her facility.

To best meet the needs of employers, the Funds are working one-on-one with the participants to ensure that each receives a comprehensive pre-training assessment and an orientation from the 1199SEIU Employment Center staff. And

working with the institutions, each training program is customized to meet the specific employment requirements of interested employers. Additionally, the Funds can set up on-site internships and clinical placements so that employers can screen participants on the job.

“We are extraordinarily pleased with the support, help and commitment of 1199SEIU and the Training and Employment Funds that makes these programs possible,” said Frank Scheets, Vice President of Human Resources for Lutheran. “The program gives us culturally diverse candidates who are trained to meet the hospital’s requirements and diversity goals, and who are reflective of the community we serve.”

To request a placement in your institution or for more information, contact Faith Wiggins, Director of the Home Care Fund, at (212) 494-0507.

Summer EMPLOYER NEWS 3

In the Face of Rising Healthcare Costs, New Collectively Bargained Cost Savings Will Save Critical Dollars:

New Program Initiatives Ensure Quality Care While Keeping Expenses Low

Programs Begin October 1 The skyrocketing costs of healthcare are unrelenting – and no one knows that better than the industry’s employers. In fact, costs for employer-sponsored coverage have risen a startling 87% since 2000, and are projected to increase by another 53% between 2006 and 2010.

Caught in the eye of this storm are many of the nation’s employers, who simply can’t afford the health coverage for employees that commercial, for-profit insurers offer.

But 1199SEIU employers have the benefit of the Fund’s cost-efficient model, which provides the best value for your contributions.

As a not-for-profit welfare fund with sound fiscal management, the Fund spends more than 93 cents of every contributed dollar directly on benefits. In contrast, the five biggest commercial insurers – UnitedHealth Group, Wellpoint, Aetna, Cigna and Humana – spend only an average of 73 cents of each dollar on health coverage, with the rest going toward marketing, advertising and profits. While healthcare premiums alone can cost $11,765 per year or more, the Fund provides a comprehensive benefit package to your employees for only $8,694 per member. Even if a similar package of benefits was available from a commercial insurer, it could cost up to $25,000.

But even with these efficiencies, the Fund is grappling with rising healthcare costs – just like insurers and employers nationwide.

Though the Funds’ costs have risen more slowly than the national average – 49% compared to 87% – they continue to escalate.

4 EMPLOYER NEWS Summer 2007

The National Benefit

To hold the line on costs, the new 1199SEIU/League Collective Bargaining Agreement mandated the Funds to build on the successful cost-containment

Fund’s costs have risen

initiatives and save an additional $150.3 million by the end of the contract in

more slowly than the

2011. These new programs, developed with the Cost-Containment Committee of Trustees, will go into effect October 1. They include:

national average – 49% compared to 87% National Average Costs 100

Revised Preferred Drug List and Generic Programs: To hold down prescription drug costs, the Fund’s clinicians are working with Medco to further develop the Preferred Drug List, which will include more generic drug options and higher discounts on key preferred brands.

authorization on some additional services such as podiatric surgery. Prior authorization is also being considered for certain high-end imaging tests.

This month, the Fund begins its education of members and providers on the programs through an extensive communications campaign.

80

Expanded Wellness Program: NBF’s Costs

0

The Fund will also expand its Wellness Program by contracting with Health Dialog, a comprehensive disease management program that will provide wellness support, including a 24-hour nurse hotline and oneon-one health coaching for members with chronic conditions. The health coaching is expected to help members keep their diseases under control, reducing significant acute medical costs that occur when conditions are left unmanaged.

Percentage Increases from 2000-2006

Enhanced Prior Authorization:

60

40

20

87% 49%

Sources: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006; Bureau of Labor Statistics; LRA Consulting

The Fund is evaluating services that require prior authorization to ensure that members receive the most appropriate care from the most appropriate providers, and requiring prior Summer 2007 EMPLOYER NEWS 5

In the Face of Rising Healthcare Costs, New Collectively Bargained Cost Savings Will Save Critical Dollars:

New Program Initiatives Ensure Quality Care While Keeping Expenses Low

Programs Begin October 1 The skyrocketing costs of healthcare are unrelenting – and no one knows that better than the industry’s employers. In fact, costs for employer-sponsored coverage have risen a startling 87% since 2000, and are projected to increase by another 53% between 2006 and 2010.

Caught in the eye of this storm are many of the nation’s employers, who simply can’t afford the health coverage for employees that commercial, for-profit insurers offer.

But 1199SEIU employers have the benefit of the Fund’s cost-efficient model, which provides the best value for your contributions.

As a not-for-profit welfare fund with sound fiscal management, the Fund spends more than 93 cents of every contributed dollar directly on benefits. In contrast, the five biggest commercial insurers – UnitedHealth Group, Wellpoint, Aetna, Cigna and Humana – spend only an average of 73 cents of each dollar on health coverage, with the rest going toward marketing, advertising and profits. While healthcare premiums alone can cost $11,765 per year or more, the Fund provides a comprehensive benefit package to your employees for only $8,694 per member. Even if a similar package of benefits was available from a commercial insurer, it could cost up to $25,000.

But even with these efficiencies, the Fund is grappling with rising healthcare costs – just like insurers and employers nationwide.

Though the Funds’ costs have risen more slowly than the national average – 49% compared to 87% – they continue to escalate.

4 EMPLOYER NEWS Summer 2007

The National Benefit

To hold the line on costs, the new 1199SEIU/League Collective Bargaining Agreement mandated the Funds to build on the successful cost-containment

Fund’s costs have risen

initiatives and save an additional $150.3 million by the end of the contract in

more slowly than the

2011. These new programs, developed with the Cost-Containment Committee of Trustees, will go into effect October 1. They include:

national average – 49% compared to 87% National Average Costs 100

Revised Preferred Drug List and Generic Programs: To hold down prescription drug costs, the Fund’s clinicians are working with Medco to further develop the Preferred Drug List, which will include more generic drug options and higher discounts on key preferred brands.

authorization on some additional services such as podiatric surgery. Prior authorization is also being considered for certain high-end imaging tests.

This month, the Fund begins its education of members and providers on the programs through an extensive communications campaign.

80

Expanded Wellness Program: NBF’s Costs

0

The Fund will also expand its Wellness Program by contracting with Health Dialog, a comprehensive disease management program that will provide wellness support, including a 24-hour nurse hotline and oneon-one health coaching for members with chronic conditions. The health coaching is expected to help members keep their diseases under control, reducing significant acute medical costs that occur when conditions are left unmanaged.

Percentage Increases from 2000-2006

Enhanced Prior Authorization:

60

40

20

87% 49%

Sources: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006; Bureau of Labor Statistics; LRA Consulting

The Fund is evaluating services that require prior authorization to ensure that members receive the most appropriate care from the most appropriate providers, and requiring prior Summer 2007 EMPLOYER NEWS 5

Voucher Program’s Flexible, Affordable Childcare Options Benefit Workers, Families and Employers

Training and Employment Funds Upgrade Home Care Workers to Fill Critical Positions in Participating Institutions

Balancing a job and family responsibilities is a challenge for any working parent. For healthcare workers who often work irregular shifts, finding quality, dependable childcare can be particularly stressful – and that can translate to higher absence rates and even affect patient care.

In response to the industry’s staffing needs, the Training and Employment Funds have created a specialized program focused on training and upgrading home care workers to fill Certified Nursing Assistant and Patient Care Associate positions in participating institutions. With $300,000 in support from the Robin Hood Foundation, the Funds are currently working to place 100 home care workers. This summer, the Funds will evaluate the program to make recommendations for expanding it further.

To address this need, the 1199SEIU Child Care Fund offers a voucher program that provides members with full or partial reimbursement for child care expenses. The vouchers are based on a sliding scale that takes into account members’ income, as well as the number of children in a family and the type of childcare they are receiving. In the years that the voucher program has been offered, it has rapidly become the Fund’s most popular and most frequently requested childcare benefit.

The flexibility of the voucher program makes it a unique service tailored to 1199SEIU members. For instance, members can either choose licensed day care providers on their own, or receive vouchers to cover the cost of babysitting services by a relative, friend or neighbor.

For the youngest children, newborn to five years old, parents can apply for a “Day Care” voucher that covers costs for full-time care.

Members with school-aged children between six and 12 can choose an “After School” voucher, which can be used for part-time care either before or after the school day, depending on the parents’ needs and work schedule. For children and youth from three 6 EMPLOYER NEWS Summer 2007

to 17, a “Summer Day Camp” voucher is available that covers an eight-week period during the summer. There are also special vouchers for parents of children with documented special needs.

Thanks to this flexible resource, working parents can feel confident that their children are getting the care they need, freeing workers to in turn provide quality care to their patients.

Drawing from the home care workforce to meet the needs of hospitals and nursing homes makes sense. Many of the home care workers in the program are immigrants who were either nurses or medical technicians in their own countries, with experience and skills that will be an asset to the field. And since 90% of the participants already speak a variety of languages including Mandarin, Cantonese, French Creole, Russian, Polish and Spanish, these workers will be a valuable resource for providing thorough, quality care to New York City’s diverse patient population. For instance, former home attendant Linda Chan, a graduate of a 2004 pilot program, was initially placed as a nursing attendant at Lutheran Medical Center, and has since received additional training and upgraded to Senior CNA. Her ability to speak four different Chinese dialects has made her an asset to her co-workers and improved patient care at her facility.

To best meet the needs of employers, the Funds are working one-on-one with the participants to ensure that each receives a comprehensive pre-training assessment and an orientation from the 1199SEIU Employment Center staff. And

working with the institutions, each training program is customized to meet the specific employment requirements of interested employers. Additionally, the Funds can set up on-site internships and clinical placements so that employers can screen participants on the job.

“We are extraordinarily pleased with the support, help and commitment of 1199SEIU and the Training and Employment Funds that makes these programs possible,” said Frank Scheets, Vice President of Human Resources for Lutheran. “The program gives us culturally diverse candidates who are trained to meet the hospital’s requirements and diversity goals, and who are reflective of the community we serve.”

To request a placement in your institution or for more information, contact Faith Wiggins, Director of the Home Care Fund, at (212) 494-0507.

Summer EMPLOYER NEWS 3

N E W C R O S S - F U N D S W E B S I T E I M P R O V E S S E R V I C E TO YO U

www.1199SEIUFunds.org Provides One-Stop Shopping for Employers, Members and Providers This July, the 1199SEIU Family of Funds is launching a new cross-funds website for members, employers and providers to access information about the full range of benefits that your contributions pay for through the Benefit and Pension, Training and Employment and Child Care Funds.

Similar to the Member Handbook that the Funds created last year, the new site will make it easier for members to understand and use their benefits. By simply entering their institution name into the Member Benefits Finder, your employees will be pointed directly toward the specific benefits that they are eligible for.

If You’ve Got Benefit and Pension Questions, We’ve Got the Answers We work hard to provide good customer service to 1199SEIU members – your employees – where they work and where they live. Our Benefit Fund Outreach Coordinators can assist them at the worksite and are also available, along with our member services representatives, by phone and in person at walk-in Member Services offices in New York City, New Jersey, Westchester and Long Island. You can also schedule a time for your Coordinator to come to your facility to answer questions or explain Fund benefits.

TO CONTACT THE OUTREACH COORDINATOR FOR YOUR INSTITUTION: Besides making it easier for your employees to find information about the benefits your contributions support, the site also includes a special section for employers.

Employers can use this area to download reporting and enrollment forms, find important benefit news and contact Fund representatives with any questions. In the coming months, the site will also have enhanced functionality to allow you to submit forms, reports and other information directly online.

Starting this July, log on to www.1199SEIUFunds.org for any questions about your employees’ health, pension, training and childcare benefits – all in one,

Outreach Department: (646) 473-6930

FOR MEMBERS: Member Services: (646) 473-9200 1199SEIU BENEFIT FUND SATELLITE OFFICES Office hours are 9 a.m. to 5 p.m.

Monday through Friday unless noted.

Main Benefit Fund Office 330 West 42nd Street (Between 8th and 9th Avenues) New York, NY 10036 (646) 473-9200 Bronx 2501 Grand Concourse, 3rd Floor Bronx, NY 10468 (718) 561-0234 Brooklyn 25 Elm Place (Lobby) Brooklyn, NY 11201 (718) 643-6726 Queens 97-45 Queens Blvd., 7th Floor Rego Park, NY 11374 (646) 473-8565

Staten Island 790 Port Richmond Ave. Staten Island, NY 10302 Mon. and Tues., 9 a.m. - 5 p.m.

Westbury 761 Merrick Ave. Westbury, NY 11590 (516) 229-6721 White Plains Berkley College Building 99 Church Street, 4th Floor White Plains, NY 10601 (914) 997-2811 New Jersey 555 Route 1 South, 3rd Floor Iselin, NJ 08830 Wed. and Thurs., 9 a.m. - 5 p.m.

Child Care Questions (212) 564-2220 Training and Employment Questions (212) 643-9340

easy on-line location.

2 EMPLOYER NEWS Summer 2007

Summer 2007 EMPLOYER NEWS 7

Summer 2007

Together with our employers and the Union, we’re addressing the needs of the healthcare workforce – which helps us meet our shared goal of providing quality patient care.

LETTER FROM THE EXECUTIVE DIRECTORS No one understands the pressures of rising healthcare costs like those of you at the center of the industry. In this edition of 1199SEIU Employer News, you’ll read about the challenges that the Benefit Fund faces in providing high-quality, low-cost health coverage, and how we’re meeting that challenge. As outlined in the recent 1199SEIU/League Collective Bargaining Agreement, the Fund will begin a new series of cost-savings programs on October 1. These new initiatives will build on the Fund’s earlier costcontainment successes and at the same time support your workforce by ensuring the quality of care that your employees receive.

In this edition, you’ll also read about other ways that our Funds are strengthening the workforce and the industry. We continue to respond to the industry’s needs through services like the Training and Employment

IN THIS ISSUE . . .

New Cross-Funds Website Improves Service to You . . . . . . . . . . 2

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

Training and Employment Funds Upgrade Home Care Workers to Fill Critical Positions . . . . . . . . . . . 3 In the Face of Rising Healthcare Costs, New Collectively Bargained Cost Savings Will Save Dollars . . . . . 4 New Program Initiatives Ensure Quality Care While Keeping Expenses Low . . . . . . . . . . . . . . . . . 5

Funds’ program to upgrade home care workers to fill shortage positions in contributing institutions, and the Child Care Fund’s voucher reimbursement program that offers working parents flexible support to balance work and family responsibilities.

Together with our employers and the Union, we’re addressing the needs of the healthcare workforce – which helps us meet our shared goal of providing quality patient care.

Sincerely,

Voucher Program’s Flexible, Affordable Childcare Options Benefit Workers, Families and Employers . . . . . . . . . . 6 If You’ve Got Benefit and Pension Questions, We’ve Got Answers. . . . . 7

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Executive Director Training and Employment Funds

Vivian Fox Executive Director Child Care Funds