Section 12: Insurance and Loss of License Benefits
Loss of the Platinum PPO Plan
-Platinum PPO plan itself terminated after 2008: See TA Section 12 Paragraph A.8
"Only those pilots currently participating in the Platinum PPO plan will be permitted to continue with this coverage for the remainder of plan year 2007 and plan year 2008. Thereafter, these pilots may elect coverage under the Gold PPO plan for one or the HMP plans, or under other plans offered by the Company."
[FONT="]o[/FONT]No new participation allowed. Pilots currently enrolled in the Platinum PPO plan are “grandfathered” to the end of 2008.
[FONT="]o[/FONT]Current Contract requires Platinum PPO be maintained. Current Section 11 Paragraph A.1.
"Health, Vision Dental, and Life insurance shall be provided to all pilots and their families covered by this Agreement with benefits not less than in effect on the day of signing.
Co-pay amounts can change
-Proposed TA allows a change in monthly premiums AND co-pay amounts for both PPO and HMO plans. See TA Section 12 Paragraph A.9.
“Upon request, the Company will provide the Association justification for increases in monthly premiums for health insurance costs or increases in user co-pays, within thirty (30) days.”
[FONT="]o[/FONT]Current contract Health Insurance does not allow both increases in co-pays AND monthly premiums. Section 11 A.6.
“the same, or equivalent level of insurance coverage.” Note: The Company has interpreted “co-pay” as “employee monthly contribution of monthly
premiums” in this Contract and could be easily grieved.
Premium amounts can STILL increase EVERY YEAR by 15% Gold PPO, 10% HMO
12.A.9 - “Upon request, the Company will provide the Association justification for
increases in monthly premiums for health insurance costs or
increases in user co-pays, within thirty (30) days.”
12.A.7 – WHEN there is an increase (not IF) in the cost of the total premium for the same health coverage, no more than 50% of that increased cost may be passed on to employees in any one plan year (not one plan year of the duration, but ANY one PLAN YEAR).
- “Further, the maximum cost increase in ANY one year for employee contributions cannot exceed 15% of the previous cost for the same or equivalent level of insurance coverage.”
- “The maximum cost increase in any one plan year for employee monthly contribution for health HMO plans cannot exceed 10% of the previous cost for the same or equivalent level of insurance coverage.”
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The NPA has claimed that the Company can only increase monthly premiums ONCE for the duration of the contract. There is NO reference anywhere in the contract nor is there reference to a side letter referred to in the NPA Bullet Points which supports this claim.
Loss: Loss-of-License Insurance gutted.
See TA Section 12 Paragraph C.1. "A pilot who is on an extended medical leave of absence in accordance with Section 9 of this Agreement, and who if requested can show verification by a qualified aero medical examiner of unfitness for duty, is entitled to receive loss of license disability pay of fifty (50) percent of his normal pay in accordance with the table below:"
Years of Service Number of Months Paid
1 0
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
Current Contract Loss-of-license: two years loss of license insurance at 66% of a pilot’s normal pay or $5000, whichever is greater. Note: A System Board ruling in March 2003 established the $5000 cap. This concession gives that up COMPLETELY!
GAIN: HMO monthly premium increases limited to ten (10) percent
However, Co-Pay amounts under the HMO may increase. See TA Section 12 Paragraph A.9.
“Upon request, the Company will provide the Association justification for increases in monthly premiums for health insurance costs or increases in user co-pays, within thirty (30) days.”
NOTE: There is NO reference to the letter referred to in the NPA Bullet Points which only allow ONE increase in Insurance Co-Pays over the course of the proposed TA
Loss: Insurance after Retirement.
Pilots retiring from service under the TA will only receive coverage at pilot rates for the first 12 months. See TA Section 15 paragraph C. 4.
"The cost of the insurance coverage shall be paid by the Pilot and the monthly premium shall be equal to that applicable under COBRA except that the Company will continue to pay the Company contributions for the first twelve (12) months following retirement. This Company contribution (for the first twelve (12) months following retirement) will terminate on the day prior to the amendable date of this 2007 Agreement."
Current contract protects retirees by making the Company contribute to retiree’s medical premiums. Section 14 Paragraph C.1.b)
The Company will continue to pay the Company contributions required in Section 11 of this Agreement for those pilots who elect coverage past retirement using the following terms:
Pilots who retire at age sixty (60) or older shall be responsible for paying only the pilot’s share for such coverage as follows: Note: What follows allows the use of vacation bank, monthly payments, etc
Loss: Insurance after Retirement. Company contribution terminated on amendable date of contract
If Proposed TA is not renewed by the amendable date, retiree’s company contributions are terminated one day prior to the amendable date. See TA Section 15 paragraph C. 4.
"The cost of the insurance coverage shall be paid by the Pilot and the monthly premium shall be equal to that applicable under COBRA except that the Company will continue to pay the Company contributions for the first twelve (12) months following retirement. This Company contribution (for the first twelve (12) months following retirement) will terminate on the day prior to the amendable date of this 2007 Agreement."
Loss: Insurance after Retirement. Cannot change retirement plans after retirement
See TA Section 15 paragraph C. 6
"Election for such insurance after retirement is a one-time election, made at retirement. "
Current contract Section 14 Paragraph C.1.a) allows changes.
The coverage (including but not limited to: Single Employee, Employee and Spouse/family coverage, High or Low option, HMO, PPO, etc.) will be selected or modified by the pilot in accordance with the enrollment/change of status provisions of the policies.
Loss: Insurance after Medical Retirement.
Proposed TA requires 5 years service and fifty (50) years of age. Current contract allows pilots with five years active service medical coverage in case of medical coverage with no age limit. Current Contract Section 14 C.2.a):
"Pilots who medically retire prior to age sixty may elect to continue medical insurance as follows:
The Company will continue to pay the Company contributions required in Section 11 of this Agreement for the first twelve (12) months following medical retirement. "
See TA Section 15 paragraph C. 2.
"Mandatory Retirement Due to Medical Reasons. A Pilot who retires from AirTran Airways prior to reaching mandatory retirement age will continue to be eligible to participate in the medical insurance programs (Medical, Dental, Vision) in effect for the Pilot workforce covered under this agreement up to a maximum of five (5) years, or until he reaches mandatory retirement age, whichever occurs first, provided he has reached age fifty (50) and has five (5) years of service as a Pilot with the Company."
