GNY Employer News - Fall 2008

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 Greater New York Benefit Fund kept our 2007 trend well below the national average

IN THIS ISSUE . . .

Greater New York Benefit Fund Unveils 2.2% Cost Trend Well Below National Average and Inflation . . . 2 Obama Senior Healthcare Advisor Is Keynote Speaker for Annual Trustees Meeting . . . . . . . . . . . . . 3 Strategic Support Division Streamlines Operations and Improves Our Funds’ Delivery of Services . . . . . . . . . . . . . . . . . . 3 New Directions and Innovations Committee . . . . . . . 4-5 1199SEIU Employer Child Care Corporation’s “Care for Kids” Gala Provides Funding for 2008 Programs . . . . . . . . . . . . . . . 6 Child Care Registration Is Open Through October 31 . . . . . . . . . . . 7

This issue of 1199SEIU Greater New York 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.

In this issue you’ll read about how the effective cost controls in the Greater New York 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 and Pension, Training and Employment and Child Care Funds.

We’ll also give you a look into the programs of the New Directions and Innovations Committee (NDIC), formed by both employers and 1199SEIU to improve the working environment in our nursing homes for the benefit of residents, employees and the facilities.

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 nursing homes and the quality of resident care.

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 Greater New York 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 Greater New York Benefit Fund. The impact can be seen in our cost trends. Between 2006 and 2007, the cost trend for the Greater New York Benefit Fund started at an already impressive 4.5%, just over half of the national average of 8.4%.* But the

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 three 1199SEIU Benefit Funds $261 million to date – $21.4 million for the Greater New York Benefit Fund alone. impact 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 Greater New York Benefit Fund provided coverage for a family of four during 2007 for only $8,878. Of course, our actual per member cost is even lower at $6,559, 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 Greater New York Child Care Fund is offering multiple registration options and locations through October 31. 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 Greater New York 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 Greater New York 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 nearly 20,000 1199SEIU healthcare workers in the Greater New York Benefit Fund and their 22,000 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 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 healthcare industry serves, but who do not have the collectively bargained child care benefits that many 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.

Third Annual Child Care Corporation

Care for Kids Gala: “Our Children, Our Future”

6 EMPLOYER NEWS Fall 2008

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

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 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 Corporation 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 sixto eight-week sleep-away camps.

This year’s event is expected to be the most successful yet. With the funds raised in 2008, the Corporation 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.

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.

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 Greater New York 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

As a result of the 2006 and 2007 galas, the 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.

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

Obama Senior Healthcare Advisor Is Keynote Speaker for Annual Trustees Meeting

December 8, 2008 Tavern on the Green, Central Park West at 67th St. 6:30 pm to 9:00 pm Keep an eye out for your invitation to the 2008 Child Care Corporation Gala!

To reserve your seats now, take out a program ad or for more information, please call (212) 721-4071.

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; secondly, 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 Greater New York 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

New Directions and Innovations Committee As a result of the 2007 Greater New York contract negotiations, the employers and 1199SEIU established the New Directions and Innovations Committee (NDIC) to develop ideas for how the long-term care industry can improve the working environment for the benefit of residents, employees and the facilities.

The NDIC has met three times since the beginning of 2008, and in the process various joint projects have emerged. The first project has been the design of a survey to find out areas of common concern that the employers and the union have around issues such as job satisfaction, staffing, absenteeism and training. A final version of the employer and employee surveys will go out in September to each contributing Greater New York facility in New York City, Long Island and Westchester. The local labor-management committees will play an important role to encourage workers and managers to complete their respective questionnaires and collect the materials for final tabulation.

home industry has suffered enormous LPN shortages for years, training schools have been downsizing and closing. NDIC will join with the Fund to persuade LPN school officials to reopen and expand programs.

The NDIC working group is also working to recommend the continuation of nursing homespecific training programs in contributing homes during 2009. Programs such as gerontology, dementia, palliative care, rehabilitation and restorative care, clinical training for CNAs, LPNs and RNs and leadership training for middle-level managers are some of the courses that are being considered for implementation.

Programs such as gerontology, dementia, palliative care, rehabilitation and restorative care, clinical training for CNAs, LPNs and RNs and leadership training for middle-level managers are some of the courses that are being considered for implementation.

At the most recent NDIC meeting, the committee discussed a new project to address the impending financial problems that the Medicaid-only case mix index will cause in all nursing homes in New York state if the plan is carried out by the state.

The committee will initiate a campaign to inform elected officials, workers, residents and consumers about the impact of this new funding mechanism that will greatly reduce reimbursement which, in turn, will endanger the quality of care residents receive in the facilities.

NDIC will also play an active role in finding creative solutions to solve the serious LPN training capacity crises in New York City. The largest part-time LPN schools have closed, leaving scores of prospective students with limited options. While the nursing 4 EMPLOYER NEWS Fall 2008

Fall 2008 EMPLOYER NEWS 5

New Directions and Innovations Committee As a result of the 2007 Greater New York contract negotiations, the employers and 1199SEIU established the New Directions and Innovations Committee (NDIC) to develop ideas for how the long-term care industry can improve the working environment for the benefit of residents, employees and the facilities.

The NDIC has met three times since the beginning of 2008, and in the process various joint projects have emerged. The first project has been the design of a survey to find out areas of common concern that the employers and the union have around issues such as job satisfaction, staffing, absenteeism and training. A final version of the employer and employee surveys will go out in September to each contributing Greater New York facility in New York City, Long Island and Westchester. The local labor-management committees will play an important role to encourage workers and managers to complete their respective questionnaires and collect the materials for final tabulation.

home industry has suffered enormous LPN shortages for years, training schools have been downsizing and closing. NDIC will join with the Fund to persuade LPN school officials to reopen and expand programs.

The NDIC working group is also working to recommend the continuation of nursing homespecific training programs in contributing homes during 2009. Programs such as gerontology, dementia, palliative care, rehabilitation and restorative care, clinical training for CNAs, LPNs and RNs and leadership training for middle-level managers are some of the courses that are being considered for implementation.

Programs such as gerontology, dementia, palliative care, rehabilitation and restorative care, clinical training for CNAs, LPNs and RNs and leadership training for middle-level managers are some of the courses that are being considered for implementation.

At the most recent NDIC meeting, the committee discussed a new project to address the impending financial problems that the Medicaid-only case mix index will cause in all nursing homes in New York state if the plan is carried out by the state.

The committee will initiate a campaign to inform elected officials, workers, residents and consumers about the impact of this new funding mechanism that will greatly reduce reimbursement which, in turn, will endanger the quality of care residents receive in the facilities.

NDIC will also play an active role in finding creative solutions to solve the serious LPN training capacity crises in New York City. The largest part-time LPN schools have closed, leaving scores of prospective students with limited options. While the nursing 4 EMPLOYER NEWS Fall 2008

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 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 healthcare industry serves, but who do not have the collectively bargained child care benefits that many 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.

Third Annual Child Care Corporation

Care for Kids Gala: “Our Children, Our Future”

6 EMPLOYER NEWS Fall 2008

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

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 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 Corporation 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 sixto eight-week sleep-away camps.

This year’s event is expected to be the most successful yet. With the funds raised in 2008, the Corporation 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.

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.

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 Greater New York 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

As a result of the 2006 and 2007 galas, the 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.

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

Obama Senior Healthcare Advisor Is Keynote Speaker for Annual Trustees Meeting

December 8, 2008 Tavern on the Green, Central Park West at 67th St. 6:30 pm to 9:00 pm Keep an eye out for your invitation to the 2008 Child Care Corporation Gala!

To reserve your seats now, take out a program ad or for more information, please call (212) 721-4071.

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; secondly, 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 Greater New York 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 Greater New York 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 Greater New York Benefit Fund. The impact can be seen in our cost trends. Between 2006 and 2007, the cost trend for the Greater New York Benefit Fund started at an already impressive 4.5%, just over half of the national average of 8.4%.* But the

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 three 1199SEIU Benefit Funds $261 million to date – $21.4 million for the Greater New York Benefit Fund alone. impact 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 Greater New York Benefit Fund provided coverage for a family of four during 2007 for only $8,878. Of course, our actual per member cost is even lower at $6,559, 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 Greater New York Child Care Fund is offering multiple registration options and locations through October 31. 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 Greater New York 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 Greater New York 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 nearly 20,000 1199SEIU healthcare workers in the Greater New York Benefit Fund and their 22,000 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 Greater New York Benefit Fund kept our 2007 trend well below the national average

IN THIS ISSUE . . .

Greater New York Benefit Fund Unveils 2.2% Cost Trend Well Below National Average and Inflation . . . 2 Obama Senior Healthcare Advisor Is Keynote Speaker for Annual Trustees Meeting . . . . . . . . . . . . . 3 Strategic Support Division Streamlines Operations and Improves Our Funds’ Delivery of Services . . . . . . . . . . . . . . . . . . 3 New Directions and Innovations Committee . . . . . . . 4-5 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

This issue of 1199SEIU Greater New York 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.

In this issue you’ll read about how the effective cost controls in the Greater New York 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 and Pension, Training and Employment and Child Care Funds.

We’ll also give you a look into the programs of the New Directions and Innovations Committee (NDIC), formed by both employers and 1199SEIU to improve the working environment in our nursing homes for the benefit of residents, employees and the facilities.

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 nursing homes and the quality of resident care.

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Executive Director Training and Employment Funds

Vivian Fox Executive Director Child Care Funds