1. CB Senate Order: Back to the Table – 3 Issues
Key Changes from June to NOW
Other Key Improvements to the CBA
Saving Money & Helpful Health Care Information
What Makes this a Better Deal?
Health Benefits vs. Wage Growth

2. CB Senate Order to Master Bargaining Team in June:
•Reject split sick leave plan, maintain current plan 
•Get the same raise or higher; help lower wage workers early in
agreement: 
•Improve health care offer: 
•Expand Site of Service Network
•Reduce Employee Risk for Paying More (employees need
real raise, not one they have to pay for)
•NOW: Increased offer by +/- 20% by adding $600 in new
Health Benefit Savings Incentive payments, adding more
money into special employee accounts to use for health
care costs, and converting first 5 months of raise into a
$300 payment for all full time employees.

3. June 2013 Rejected (then)
October 2013 Recommended (after)
No signing bonus to pay equal amounts to workers.
$300 signing bonus 12/13 (in lieu of retroactive pay)
1.5% raise begins 1st pay period in July 2013
1.5% raise begins 1st pay period after signing
Split sick leave plan; eliminate supplemental sick leave
Sick leave SEA/State study committee created
Short term disability plan
Supplemental sick leave (current program remains)
Nothing to put more money into workers’ pockets,
even though workers have continued to give up
money in wage growth while the price of the health
benefit grows, and workers pay more for it too.
$300 Health Benefit Savings Incentive payments in first
paychecks of January 2014 and 2015 ($600 total) for
each full time employee. Part time employees that
subscribe to the health plan will receive these too.
Funds can be used without restriction as they will be
included in employee paychecks.
New Health Promotion Program with up to $300
annual incentives. Full time employees and part time
employees that subscribe to the health plan can
complete wellness activities to receive incentives,
paid in the form of product gift cards. Wouldn’t have
directly helped workers with medical costs.
New Health Promotion Program with up to $300 annual
incentives. Full time employees and part time
employees who subscribe to the health plan can
complete wellness activities to receive incentives.
Funds will be deposited into employee’s health
reimbursement arrangement. Any of these unused
funds will remain in the account until 12/31/2015.
Funds can be used for medical and drug co-payments,
deductibles incurred, vision care and glasses/contacts.

4. 2.25% raise begins 1st pay period in July 2014
2.25% raise begins 1st pay period in January 2015
Dental Plan: Annual per person maximum coverage
increased by $300 to $1,500. Cleanings increased by 1
to 3 per year per person. For children, fluoride
treatments increased to 2 per year. Sealant coverage
expanded to adults. NEW-dental implant coverage.
NEW-Employees choosing dental coverage will pay
working rates (premiums) for employee ($1),
employee +1 ($2) or family ($3) coverage.
Medical plan only: new (up to) $500 deductibles for
services that do not already have co-payments. ($500
individual annual maximum, $750 family maximum in
2014 and $1,000 in 2015). 100% covered preventive
care remains in place. Office visit and drug copayments are unchanged. NEW hearing aid benefit for
adults ($1,500 per ear every 5 years) Urgent Care visits
specified at $30 and Emergency Room visits remain at
$100. No change to full Anthem network of providers.
No change to employee working rate contribution
(premiums).
Current $200 Health Reimbursement Arrangement for
completing Health Risk Appraisal expands use to
include paying for vision and glasses/contacts.
Site of Service Program (expanded to add more sites):
Additional resource of identified providers that will
offer services at lower costs, to a degree that
deductibles for those services may be waived entirely.
NEW Notice of Transfer: 30 days advanced notice if
worker being involuntarily and permanently
transferred more than 30 miles, one way, from their
home address.
Utilization of Cost Effective Providers (Compass
SmartShopper): Resource of identified providers that
offer services at lower costs, to a degree that the
employee can earn a rebate check, some up to $500.
If employee medical costs are lower than budgeted,
after paying the two Health Benefit Savings Incentive
payments, another payment may be made, and
anything left over will be used for the next contract.
Shift differential provisions are amended to aid in
consistent application; also they are restored for
Correctional Officer Supervisory staff.

5. There are thousands of claim code possibilities subject to deductibles. Basic categories
are: outpatient surgery, laboratory (outpatient), imaging (x-rays, ultrasounds, CT scans,
MRIs), and inpatient admission (once for admission, not daily deductible). Certain
services have mandatory deductibles that cannot be waived, no matter the provider
you use: inpatient admittance and imaging services.
Option 1: Avoid deductibles by using Anthem’s Site of Service (SOS) program. Lower
cost sites and providers save you and your health plan money. Your deductible will be
waived (unless it is a mandatory deductible), and your health plan pays a smaller claim
too. Not all SOS locations provide all deductible eligible services though.
Option 2: Compass SmartShopper program sends you a rebate check if you call
Compass and arrange to have the service you need performed by their preferred lower
cost providers, plus your health plan pays a smaller claim too.
Option 3: Use money from your $200 health reimbursement arrangement (that you
get when you complete your health risk assessment) to pay your deductible if you can’t
get it waived or earn a rebate check to help pay for it.
Option 4: Use money from your $300 health reimbursement (that you get when you
complete wellness activities), if all else fails. Use this money last because any you don’t
spend will rollover for your continued use until December 31, 2015
Option 5: Use money you’ll receive from your January 2014 and 2015 $300 (each year)
Health Benefit Savings Incentive payments.
SOMETIMES…you might even be able to use Anthem’s SOS and Compass Smartshopper
all at once. That way you can get your deductible waived and get a rebate check too.

6. You can still access the full Anthem network (providers and hospitals). Site of
Service and Compass SmartShopper do not change your access.
Preventive care is still 100% covered; co-payments for office visits, therapies and
prescriptions are unchanged.
You will not be charged a deductible that is actually more than the cost of the
service itself.
Not all deductibles charged will be at the amount of $500. Some will be less.
Completing the health risk appraisal early in each new year gives you the most
time to benefit from the $200 health reimbursement arrangement.
Likewise, so does completing your wellness activities – a $300 arrangement.
Every person’s health care consumption is different. There are many options to
help people best plan for their medical needs and out of pocket costs, including
Flexible Spending Accounts (FSAs) and individually purchased insurance policies
that pay you money when you’re hospitalized, or use a variety of other medical
services (such as AFLAC).
The State begins open enrollment for 2014 in late November. Educational
sessions about your new health plan are being held throughout the state in
November. Attending one is a good way to learn more about these changes.

7. In June, the State projected health plan changes would save the
State $10.3m. Legislators used this projection to help pay for
raises. Our projections indicated at least $5m more in savings
that weren’t being given back to us in raises.
State also predicted not many employees would face
deductibles. Our projections indicated over half would. We
predict that of the approximate 30,000 people in the state
employee health plan, 10,000 people a year will experience
some level of deductible. Approximately 5,000 people will also
experience a deductible if they do not seek care at a Site of
Service location.
Latest data proved workers needed a real raise and extra money
to offset new deductibles. This deal includes $6m more money
for employees and up to $6m in wellness activity incentive
payments.
With this deal, employees receive extra funds they may need to
offset deductibles while still driving health care cost down.

8. Employees took smaller raises for years for “free” health care. Today, half the
state employees earn less in wages than they do in benefits – mostly due to
health insurance.
For years, employees were promised lifetime free health care in retirement.
That promise was broken in 2009. But those lower wages left those former
workers with smaller pensions, only later to face new health care costs (which
they thought they already paid for in lower wages).
There are no collective bargaining rights in retirement. Without the ability to
control the State’s health care promises, today’s workers increasingly want
higher wages so that they can earn more money throughout their lifetime –
including retirement.
State employee salaries are generally 15%-35% below market. For a $30,000
annual wage employee, lost wage earnings of 15% translate into a loss of
$2,250 a year in pension payments, on top of earning $4,500 less a year while
still working. A $45,000 wage worker, with a 20% below market salary loses
$4,500 a year in pension payments, in addition to earning $9,000 less a year.
Each recent negotiation cycle, the State over projected health care inflation. From
2008-2011, $60m in extra inflation (that never occurred in claims paid), resulted in
state agencies receiving $60m back in employee compensation, then used to balance
agency budgets. That’s an average of $1,500 a year workers lost in wages and $750 a
year lost in future pension payments.