APFA Negotiations

Article 35 - Group Life and Health Benefit Plan

 

 
Current Contract
Proposed Contract
Article 35: Group Life & Health Benefit Plan

Active Medical

 

Employee Monthly Contributions $150 Deductible Contractual Plan
Tier 2010
EE Only $38.98
EE+1 $77.51
EE+2 $102.55

 

  • 420 hour threshold with monthly look-back.

 

 

 

 

 

 

 

 

 

 

 

Retiree Medical

  • Current Retirees: Prefund while active, no premiums due after retirement for coverage.
  • Current Employees: Prefund while active, no premiums due after retirement for coverage.

Active Medical

 

Employee Monthly Contributions            $300 Deductible Contractual Plan
Tier 2011 2012 2013 2014 2015
EE Only $50 $60 $70 $80 $90
EE + child(ren) $90 $110 $130 $150 $170
EE + Spouse/DP
 $100 $120 $140 $160 $180
EE + Family
$150 $180 $210 $240 $270

Please note: After 2015, these rates will begin to reflect inflation, though any increase in monthly contribution would not exceed 10 percent per year.

  • A free PPO health plan that is compatible with a Health Savings Account (a core medical plan option). The employee monthly contributions for the core medical plan option are zero through 2015.
  • The four standard contractual options will be condensed to two: a $300 deductible plan and a free health plan that is compatible with a Health Savings Account.
  • 540 hour threshold with annual look-back (effective Aug. 31) to secure company contribution toward benefits.


Retiree Medical

  • Current Retirees: No changes for current retirees. Also, no changes for FAs who notify the company they’d like to retire by 12/31/11. Actual separation date TBD by the company.
  • Current Employees: Prefunding will end and prefunding balances, averaging approx. $1,000 per FA, will be refunded.
  • Retiree Medical Coverage Age 55-64 Flight attendants and eligible family members will each pay the employee-only active medical $300 deductible plan option shown above.
  • Coverage once Medical Eligible (Age 65): The company will provide access to a guaranteed issue Medicare supplement plan with no company subsidy.
  • New Hires: Will receive guaranteed access at their expense for retiree medical coverage prior to and after age 65.

 

Like most companies, American has seen the cost of employee health insurance soar year after year. And like most companies, American is asking its employees to share a portion of the increased costs. We recognize the burden of the growing cost of healthcare. Our proposal offers pay increases that more than offset our proposed increases to health coverage for flight attendants.

 

The chart below tells the story, using as an example a flight attendant with 15 years seniority who flies the average bid line. Here’s a look at our proposed pay increases – 9.9% compounded over five years – in relation to our healthcare proposal.

 

The Company's Proposed Pay Rates with Medical Contributions*

15-Year Domestic Flight Attendant Flying 82 Hours Per Month

   
2011
2012
2013
2014
2015
% Pay Increase
EE Only Salary $46,258 $48,126 $49,089 $50,071 $50,822
+9.9%
  Medical Coverage $471 $720 $840 $960 $1,080
  Net $45,787 $47,406 $48,249 $49,111 $49,742
+8.6%
EE + Spouse/DP Salary $46,258 $48,126 $49,089 $50,071 $50,822
+9.9%
  Medical Coverage $936 $1,440 $1,680 $1,920 $2,160
  Net $45,321 $46,686 $47,409 $48,151 $48,662
+7.4%
EE + 1 Child Salary $46,258 $48,126 $49,089 $50,071 $50,822
+9.9%
  Medical Coverage $936 $1,320 $1,560 $1,800 $2,040
  Net $45,321 $46,806 $47,529 $48,271 $48,782
+7.6%
EE + Multiple Children Salary $46,258 $48,126 $49,089 $50,071 $50,822
+9.9%
  Medical Coverage $1,239 $1,320 $1,560 $1,800 $2,040
  Net $45,019 $46,806 $47,529 $48,271 $48,782
+8.4%
EE + Spouse and Children Salary $46,258 $48,126 $49,089 $50,071 $50,822
+9.9%
  Medical Coverage $1,239 $2,160 $2,520 $2,880 $3,240
  Net $45,019 $45,966 $46,569 $47,191 $47,582
+5.7%

*Assumes that FA is currently on the $150 deductible standard plan and will migrate to the new $300 deductible plan.

 

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