How a labor union can provide group Health Insurance
by Guest » Fri Sep 30, 2011 10:26 am
I would like to know, how a labor union can provide group health insurance? Thanks for any comments.
Total Comments: 1
Posted: Fri Sep 30, 2011 11:45 am Post Subject:
A labor union is legally permitted to obtain insurance for its members. How you pay for it is up to the union to determine. Some collective bargaining agreements require the employer to contribute a portion of the premium and to deduct the balance from employee pay and forward the money to the union to pay the premium to the insurer. Others simply require the employer to obtain the insurance, to pay a certain portion of the cost, and employees pay the balance through payroll deduction.
Either way, a local agent or broker would be used to obtain the insurance by determining the essential coverage needs for most employees, and finding the one or two policies that do so most efficiently and cost-effectively for all concerned.
Your union could join with other unions to create a "Multiple Employer Trust" (MET) to provide benefits to a larger group of persons. That would lower the cost somewhat or obtain a better level of benefits for all. There may already be one or more METs in your area your union could join.
Mostly, this is going to be a contractual thing as part of the collective bargaining agreement. If the employer won't contribute or agree to provide the benefit, then the union would have to do so on its own and the members would have to pay the full cost.
Don't expect too many employers to willingly pay 100% of the cost of the insurance. There are too many people out of work, who don't care whether there is any insurance or not, who would be willing to replace your union members on the job . . . and for less money, too.
Posted: Fri Sep 30, 2011 11:45 am Post Subject:
A labor union is legally permitted to obtain insurance for its members. How you pay for it is up to the union to determine. Some collective bargaining agreements require the employer to contribute a portion of the premium and to deduct the balance from employee pay and forward the money to the union to pay the premium to the insurer. Others simply require the employer to obtain the insurance, to pay a certain portion of the cost, and employees pay the balance through payroll deduction.
Either way, a local agent or broker would be used to obtain the insurance by determining the essential coverage needs for most employees, and finding the one or two policies that do so most efficiently and cost-effectively for all concerned.
Your union could join with other unions to create a "Multiple Employer Trust" (MET) to provide benefits to a larger group of persons. That would lower the cost somewhat or obtain a better level of benefits for all. There may already be one or more METs in your area your union could join.
Mostly, this is going to be a contractual thing as part of the collective bargaining agreement. If the employer won't contribute or agree to provide the benefit, then the union would have to do so on its own and the members would have to pay the full cost.
Don't expect too many employers to willingly pay 100% of the cost of the insurance. There are too many people out of work, who don't care whether there is any insurance or not, who would be willing to replace your union members on the job . . . and for less money, too.
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