A friend sent this inquiry a week or so ago:
You must be aware that the teachers have lost their medical coverage through the VEBA Trust and benefits will convert automatically to reduced coverage through the EUTF (Employer-Union Health Benefits Trust Fund) system. Since I am a fixed income retiree supporting a family of four this is a HUGE deal for us.
Three big concerns:
1. the reduced benefits
2. the conversion comes in less that six weeks and no one has contacted us about the change except for a confusing 10/21 notice about enrolling in another drug plan or paying a late fee.
3. this .pdf answers all the questions except the ones that we the the beneficiaries may have, there will be no information sessions, and the EUTF says they will not take our calls OR EMAILS to answer our questions.
My question: WTF?
I can certainly see why my friend is confused and upset. That pdf from the EUTF says the agency “does not have the resources to conduct open enrollment sessions”, where member questions are normally answered, nor to take telephone inquiries or emails.
According to an explanation of the EUTV-VEBA issue by the UH faculty union, EUTF’s inability to conduct proper information sessions or respond to member inquiries is the result of Gov. Lingle’s refusal to release increased funds budgeted by the legislature for EUTF administrative costs.
But this issue has a long history.
The EUTF was created in 2003 after it was decided that there would be an overall improvement if previously fragmented health insurance offerings were brought under one umbrella program. EUTF then replaced the former public employees health fund.
But HSTA immediately began lobbying to again split its members off to cut separate insurance deals, and they finally succeeded in the 2005 legislative session.
In July 2005, the State Legislature enacted HB 1608 which authorized and set forth the requirements for the establishment of a Voluntary Employee Beneficiary Association (VEBA) trust by public employee organizations to provide health benefits for its members. HB1608 established a VEBA trust three-year pilot program to allow for the analysis of the costs and benefits of a VEBA trust against those of the Trust Fund. Effective March 1, 2006, the Hawaii State Teachers Association (HSTA) implemented the three-year pilot program. As a result, all active HSTA employees were enrolled in the VEBA trust and subsequently canceled from the Trust Fund’s health benefits plans. [Source: EUTF Annual Report 2006-2007]
Although HSTA was able to get a somewhat better health plan for its members by splitting off from the other public sector unions, the union was also seen as undermining the other unions by skimming off lower risk members.
This view was confirmed by a 2009 audit conducted by State Auditor Marion Higa as part of the Legislature’s evaluation of the pilot program.
We found that the VEBA trust pilot program: 1) promotes adverse selection and increases premium costs for EUTF emrollees; 2) dupblicates administrative costs borne by the State employer; and 3) cannot ensure transparency and accountability in providing health benefits for teachers and teacher retirees. Overall, the HSTA VEBA trust breaks up the EUTF health plan and negatively impacts the EUTF.
Both the audit and UHPA’s analysis are really required reading to get a better sense of the situation.
Of course, there’s a whole additional layer of concerns based on the history of our public employee unions and insurance contracts. I wrote about the issue last December, and that entry still provides a quick refresher course in relevant political history.
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I am optimistic that the new administration won’t be putting a sacred cloak over things just because they are education related. All government workers should be treated fairly. If teachers have to be brought in the bigger pool because the EUTF is in trouble — then so be it. They are not entitled to a particular plan. They just need to covered.
Further, government worker’s pensions and EUTF benefits need to be well-funded before there is any talk about ending pay cuts/furloughs. The next generations of citizens deserve nothing less.
Is anyone else totally sick of HSTA? Bunch of totally spoiled ‘but we’re TEACHERS, poor poor us, we’re doing Gods work, you have to give into to everything we want’ brats. Right up there with UHPA, only UHPA manages to mostly keep itself out of the papers.
Sorry to sound so much like “Waiting for Superman” but HSTA is an absolute source of so much that is wrong with our education system, state government, and Hawaii, as a whole.
They had lost me after the drug testing fiasco, lost me even more after they are the ones that wanted furlough friday and then ducked out to let everyone else take the huge hit that came after, and now they want all the other state government employees to keep paying more so they can get better health benefits.
Guess what, HSTA? The answer is going to be NO on this one. As it should be.
Maybe you have a point about some teachers, Hipoli, but you certainly miss the point of my email to Ian. I completely understand the reasons for the switch, and the total pool (which, IMHO needs to include EVERYONE) will benefit. Of course I am concerned about our reduced benefits (wouldn’t you be?). My real concern is the lack of information about something that could result in jeopardizing my family’s coverage. I have no idea what’s going on and what I am respo0nsible for doing to maintain my family’s coverage. Simple as that.
This is what I found ironic about VEBA. When there were discussions about extending the sunset of VEBA, HSTA and HSTA-R were upset because the other government employee unions, HGEA in particular, came out in opposition to extending VEBA.
It was ironic because HSTA lacked empathy in recognizing that the other unions were opposing the proposal for the benefit of their members–the same thing HSTA was doing in support of VEBA.
Additionally, if you worked at the Capitol between 2007 and 2010, it is likely you owned an MBC pen, shirt, or note pad. MBC or Member Benefits Corporation was the for profit arm of HSTA that managed VEBA. It was also just as likely that they bought your office a case of juice or water and possibly even lunch. I hate to beat a dead horse, but VEBA a burden on the state that was criminally mismanaged by MBC. This may sound callous, but HSTA should welcome the change.
I think there is one thing to be said against teachers : they could be insane, because who but an insane person would teach in a system that is so hostile to teachers?
I hope the insurance matter can be straightened out with maximum benefit to all public workers.