Benefits Plan changes are coming

By Benefits Chair Dave Najduch, February 2023

The work of the Benefits committee is part of an annual review of the three major plans which RTAM offers through Johnson Insurance. The committee looks at what the plan costs for members each year and the varied services accessible to our members.

This year was also unique because the WTA retirees were forced to leave Manulife and search for new coverage. This put the RTAM Committee in the position of having to compare the Blue Cross plan with what Johnson offered our members as well.

I want to thank the Committee members, Jessica and the staff at Johnson for their efforts. Collectively we looked at a lot of “data” and what you will find below reflects our efforts. As always the committee tried to balance any increase in costs with the benefits being provided so that RTAM members were receiving the best value for the money they spend.

All of the changes highlighted below have been approved by the RTAM Board and will be sent out in writing to the membership in a separate letter with more detailed information before their implementation for April 1, 2023. Please refer to the February 2023 letter for the specific details.

Health Plans / CORE EHC & Enhanced EHC

The plan underwriter for the CORE and Enhanced health plans is Desjardins Financial Security (DFS). There are just over 1000 individuals insured through the two plans. It was interesting to note for the committee that of all the claims being paid out in a single year, just about half were for drug coverage.

extended health Plans (ehC) / % Premium Changes

The table below reflects some of the history of these plans over the last 5 years and the changes which have and will be taking place.

Plan Improvements over the last fiveyear period:

(1) core (done in 2020): $100 for vaccines added to drug maximum.

(2) core (done in 2022): drug coverage increased from $600 to $900 per person per year and Ambulance coverage changed to 100% of cost.

(3) core (being done in 2023): drug coverage increased from $900 to $1050 per person per year, Glucose monitoring of $300 every 36 months, added Registered Social worker to Psychology Benefit.

(4) enhanced (being done in 2023): drug coverage increased from $1800 to $2400 per person per year, Glucose monitoring of $300 every 36 months, added Registered Social worker to Psychology Benefit.

The table below indicates how the changes in the plan will impact premiums in 2023. The numbers may vary slightly based on some rounding differences.

The focus of this year’s changes was to bring the drug coverage being offered more in line with that being provided through Blue Cross.

Dental Plan

The Dental Plan underwriter is Desjardins Financial Security (DFS). There are just over 1600 individuals insured through this plan. Over half the annual amount being paid out through the dental plan is for “Basic Claims”.

The way the dental plan is structured has created a “surplus” account. These funds have been accumulated slowly over the

ehC / $ value changes per month & per year

years. The committee has decided to use some of these funds to improve coverage provided to members in 2023. The notes below reflect the use of the surplus funds over the last five years.

* 2022 renewal had $18,454 from the surplus account used to offset another 2% increase in the premium.

** 2023 renewal will use $40,000 from the surplus account to help generate the improved coverage.

Plan Improvements:

(5) Increased plan maximum from $1100 to $1200 done in 2020

(6) Increased plan maximum from $1200 to $1500 to be done in 2023

The table below indicates how the changes in the plan will impact premiums in 2023. The numbers may vary slightly based on some rounding differences.

Prestige Travel Plan

The Travel Plan underwriter is RSA. There are just over 3100 individuals insured through this plan.

Plan Improvements:

1. Change to RSA as plan underwriter.

2. Introduced 93 day coverage option .

3. 5% increased based on the following plan change

You or your travelling companion’s death, illness or positive test result as a result of contracting Novel Coronavirus 2019 (COVID-19) which prevents you from travelling on your day of departure or day of return, or causes you to interrupt your trip. A cancellation, interruption or delay for any other reason related to COVID-19 is not covered

3.5 % increase in premium to cover additional costs.

Refer to the letter from RTAM and Johnson, which you should either already have or just be receiving, to look at the impact the increase will have on the premiums for each age group.

Another important note is that there are savings to be had in accessing Prestige travel insurance. Please refer to an article of mine in the previous KIT which explains how you can save 20% on your annual premium or even more depending on when you start and finish your travel coverage.

Conclusion

Yes I know it is a lot of numbers. The committee worked hard over four meetings to try and understand what we are currently doing and how changes in the premiums and coverage would impact members. The good news is even with these increases, the cost to RTAM members remains below that of the retiree Blue Cross plan. The problem is our coverage is still not as good in some areas.

This entire process begins again in September of this year for the 2024 renewal year. If you have comments, questions or concerns about what you have read, please reach out to me at secretary@rtam.mb.ca.