GNY Employer News - Spring 2007

Spring 2007

LETTER FROM THE EXECUTIVE DIRECTORS With new leadership in Albany and proposed state and federal funding cuts to nursing homes and hospitals, the healthcare industry is facing a volatile year ahead. That’s why in this edition of 1199SEIU Greater New York Employer News, we address how the Funds are keeping a tight rein on costs while maintaining benefits and programs. In this edition, we take a look at national healthcare cost trends and what they mean for our nursing homes and members, and we address the challenges that the Benefit Fund is facing in delivering cost-effective, comprehensive health benefits in the face of rising expenses. We also focus on how the Greater New York Education Fund is improving employers’ bottom lines through technology grant programs in participating nursing homes. Finally, you’ll read about how we’re ensuring that 1199SEIU members are accessing and using the benefits that your contributions pay for, including the Child Care Fund’s streamlined registration process and the Benefit Fund’s outreach efforts to help nursing home workers access free or discounted tax preparation through the Earned Income Tax Credit Assistance Program.

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

Of course, the success of all of these programs depends on the work that we do together with both the Union and management. Throughout the year, we’ll be updating you on the many other important programs your contributions make possible.

Sincerely,

IN THIS ISSUE . . . Escalating Healthcare Costs Call For Creative Solutions . . . . . . . . . . 2 The Challenge of Funding Health Benefits . . . . . . . . . . . . . . . 3 State Funded Pilot Technology Program to Improve Quality Care in Nursing Homes . . . . . . . . . . . . . 4 New Efforts Help 1199SEIU Parents Access Child Care Benefits. . . . . . . 5 Discounted Tax Services for Members Through the EITC Program. . . . . . . 6

Mitra Behroozi Executive Director Benefit and Pension Funds

Deborah King Executive Director Training and Employment Funds

Vivian Fox Executive Director Child Care Funds

If You’ve Got Questions, We’ve Got Answers . . . . . . . . . . . . 7

Escalating Healthcare Costs Call For Creative Solutions

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.

We all know that healthcare costs continue to rise every year faster than the rate of inflation. Since 2000, the cost of healthcare has risen an alarming 87%.1 During the same time, the average employer contribution for family coverage per worker nearly doubled – from $4,711 to $8,850 in 2006.2 At the Greater New York Benefit Fund, costs have continued to rise as well. Yet because of the Fund’s efficient model – including sound management, cost-savings programs and the joint administration of several Benefit Funds covering almost half a million lives – the Fund has held costs in check and continued to provide more for less. As a result, contributing employers to the Fund pay less than other employers nationwide for a more comprehensive package of benefits. Today, Greater New York Benefit Fund participants and their families receive full medical, hospital, dental, vision, and prescription coverage, as well as life insurance and family benefits like camp and scholarship programs for only $6,741 per member each year, with few out-of-pocket costs. In contrast, the average employer-sponsored plan for family coverage, including combined employer and worker contributions, costs $11,765 each year for a premium alone – not including co-payments, deductibles and other costs.

Health and Pension Benefits Motivate Talented Workers Not only are these benefits critical to working families, they help to retain a quality workforce. A recent Watson Wyatt study of 1,100 top-performing employees of large U.S. companies across all industries indicates that benefits are much more important to employee retention than many employers realize. While employers see promotion 2 EMPLOYER NEWS Spring 2007

If You’ve Got Benefit and Pension Questions, We’ve Got the Answers

TO REACH THE OUTREACH COORDINATOR FOR YOUR INSTITUTION: Outreach Department: (646) 473-6930

MEMBER SERVICES: Greater New York Member Services: (212) 541-9150

1199SEIU BENEFIT FUND SATELLITE OFFICES Office hours are 9 a.m. to 5 p.m. Monday through Friday unless noted. and career development as the most powerful retention incentives, employees reveal that health and pension benefits are among the most important reasons to stay with an employer.3 With healthcare costs expected to rise an additional 53% between now and 2010,4 keeping a tight rein on costs while continuing to provide this level of benefits will be an ongoing challenge. The Fund, working with the Union and employers, will continue looking for and finding cost-effective solutions to provide the kind of benefits that keep talented workers in the nursing home industry. 1 Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006; Bureau of Labor Statistics 2 Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006 3 Watson Wyatt Worldwide WorldUSA Survey, 11/06 4 Centers for Medicare and Medicaid Services

Main Benefit Fund Office 330 West 42nd Street (Between 8th and 9th Avenues) New York, NY 10036 (212) 541-9150 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) 494-0534 Spring 2007 EMPLOYER NEWS 7

Greater New York Members Have Access to Discounted or Free Tax Services Through the Earned Income Tax Credit Assistance Program Last year, nearly 6,000 members claimed more than $11 million in refunds, with average tax returns of $2,700.

The Challenge of Funding Health Benefits As healthcare costs continue to climb, funding shortfalls in the

National Health Insurance Premiums Total Increase for Family Coverage Since 2000

Greater New York Fund threaten 2006

87%

to reach critical proportions.

Did you know:

2005

73%

2004

The Benefit Fund’s Earned Income Tax Credit Assistance Program connects 1199SEIU members with trained, certified tax preparers who help determine their eligibility for the Earned Income Tax Credit and file taxes for free or at discounted rates. Intended to support low-income workers in the nursing home and home care industries, the EITC Program has grown increasingly popular with 1199SEIU members. This year, the Benefit Fund introduced new initiatives that have expanded the program’s reach to even more members. Throughout February and March, hundreds of members have been visiting H&R Block locations in the New York metro area to take advantage of the Fund’s program. In addition, the Fund partnered with Food Change during the first week of February to offer workplace tax assistance to members in select nursing homes who were not able to schedule an off-site appointment. Members who are not eligible for the EITC but meet certain income guidelines can still use the Fund’s program and pay just $75 to have their taxes prepared at a participating H&R Block. 6 EMPLOYER NEWS Spring 2007

•

Since 2000, the cost of employer- sponsored health coverage nationally has risen 87%.

•

59%

2003

43%

Nationally, the average employer cost for family coverage per worker has nearly doubled between

2002

25%

2000 and 2006 – from $4,711 to $8,850. •

The average employer-sponsored family plan,

2001

11%

including combined employer and worker contributions, costs $11,765 each year for a

2000

0%

premium alone – not including co-payments, The Benefit Fund’s Outreach Department has flyers and information available to distribute to eligible employees who have not already filed their taxes.

deductibles and other costs. •

In 2006, the Greater New York Benefit Fund provided full family coverage, including medical, hospital,

0

20

40

For materials or more information about the program, contact the Outreach Department at (646) 473-6930.

80

100

The Benefit Fund’s Costs are Lower Than the National Average

prescription, dental, vision and quality-of-life benefits for $6,741 per member.

60

$11,765

$12,000 $10,000 $8,000

•

Even though the cost of providing benefits is

$6,000

significantly below the national average, employer

$4,000

contributions have not kept pace. In 2006, employer

$2,000

contributions only totaled $5,774 per member – leaving a funding gap of $967 for last year alone.

$0

$6,741

Greater NY Benefit Fund

National Average

All Data From Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006 Spring 2007 EMPLOYER NEWS 3

State-Funded Pilot Technology Program to Improve Quality of Care in Nursing Homes As long-term care providers struggle to meet the needs of a rapidly aging population, there has been increased interest in improving technology in nursing homes at all levels of government – federal, state and local. Now, through a grant from New York State’s Department of Health, the Greater New York Education and Worker Participation Funds are participating in a technology pilot program that will help to improve the quality of resident care in nursing homes around the state. The funding, secured through the efforts of the Union and employers, supports the Quality Care Initiative outlined in the last contract that focuses on improving quality indicators and financial performance in participating nursing homes. By providing technology training and facilitating the projects, the Funds will be helping nursing homes to increase efficiency and deliver quality care cost-effectively, which will increase both their bottom lines and the quality of life for residents.

The pilot project aims at streamlining routine nursing home tasks by introducing technologies such as electronic recordkeeping and health information systems into 20 nursing homes to free staff to spend more time with residents. The Funds will also be studying the effects on each participating nursing home in order to quantify the impact that new health information systems have on residents, workers, and facilities. While the list of participating nursing homes is still being finalized, the Fund is interviewing trainers and beginning technology product demonstrations in some contracted facilities. In the meantime, the initiative has already received the attention of many in the longterm care field, and was recently cited as a project to study as a potential model by Mary Jane Koren, Assistant Vice President of the Commonwealth Fund, in her February 2007 testimony before the U.S. House Appropriations Committee.

The pilot project aims at streamlining routine nursing home tasks by introducing technologies such as electronic recordkeeping and health information systems into 20 nursing homes to free staff to spend more time with residents. 4 EMPLOYER NEWS Spring 2007

New Education and Outreach Efforts Help More 1199SEIU Parents Access Child Care Fund Benefits Affordable, dependable child care benefits are critical to working parents. A study published in the American Journal of Health Promotion found that workers experiencing high stress for issues including child care were over two times more likely to be absent from work at least five times each year. And past surveys indicated that employees’ access to affordable, quality child care has a net positive impact on employers by decreasing absenteeism while boosting productivity and morale.1

New Processes Increase Access to Benefits Over the past year, the Child Care Fund has been making improvements in the registration process to ensure that every eligible parent knows about and can access the programs their employers pay for. The investment is working – in 2006, 1,417 members applied for Child Care Fund benefits, and in 2007 that number rose to 1,621. The Fund’s flexible child care options are particularly important within the nursing home industry, where many members work off-shifts and long hours. The Fund’s new initiatives take members’ work schedules into account. Through a step-bystep online tutorial and registration process, members can register for child care benefits from home. And members who choose to register in person can visit registration sites around the city during morning, evening and weekend hours before or after their work shift. Members who register on-site also receive school supplies for their children including knapsacks, notebooks and writing tools, which is especially helpful for working parents pressed for time or money.

members understand the scope of the programs and benefits available to them, which has led to increased registration as well as higher attendance at parenting workshops and seminars. And staff members from the Fund’s Child Care Resource and Referral program are helping to educate parents about how to choose the best educational facilities and services for their children. The Child Care Fund’s programs help to give 1199SEIU members the peace of mind they need to work with more focus while on the job. With these improvements, the Fund is making it easier for workers to plan their child care needs ahead of time – leading to more productive, reliable workers and stronger institutions. 1 CCH Consulting, 2006 “Unscheduled Absence Survey”;

The Fund is also reaching out to members at registration sites. Counseling is now available to help

California Child Care Resource & Referral Network, 2005 California Child Care Portfolio Spring 2007 EMPLOYER NEWS 5