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Ask President Burrus

Question:

Under the tentative agreement, I will have to pay 1 percent more for my BlueCross BlueShield healthcare premium. The premium for the basic plan is $40.17 per pay period. Does the one percent increase mean that my premium will increase by roughly 41 cents per pay period, or is there another way to figure it out?

Thomas, Western Arkansas Area Local

President Burrus:

The 1 percent increase in the employee’s healthcare premium will be based on the total premium cost, including both the employer’s share and the employee’s share, so it will be more. In the case of BlueCross Blue Shield Basic Option, which is one of the less expensive plans, the limit on the employer’s maximum contribution may also increase your costs.

Presently, the Postal Service pays 85 percent of the weighted average of plans in the Federal Employees Health Benefits Program (FEHBP), and the maximum employer contribution to any plan is limited to 88.75 percent of the plan’s total premium. Beginning in 2008, the employee’s share of premiums will increase by 1 percent. At the same time, the maximum employer contribution will be reduced by approximately 1 percent each year, through 2011. Depending on the plan, the affect of the limit on the employer’s maximum contribution may have a greater dollar impact than the 1 percent premium shift.

The APWU has no control over BlueCross BlueShield policies that could affect their premiums, so we are unable to accurately predict their future increases.

December 21, 2006

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