A healthy dose of reality
A look at some myths, truths about
Boeing's health care expenditure
For the past several years, skyrocketing health care costs have
been the norm across the United States—and a topic discussed often
in the media and at Boeing. Here's a look at some of the myths that have
surfaced about health care costs—along with the realities of the
company's health care costs and benefits, and how Boeing is working to
manage future cost increases.
Healthy amounts
In 2004, Boeing's total health care spending was $1.7 billion. To
put that number into perspective, that is enough to do any one of
these actions:
Buy seven 777-300ERs* or 33 737-700s*
Buy 30 F/A-18 Super Hornets* or 56 CH-47F Chinooks*
Give Boeing Capital Corporation enough equity to finance
about $10 billion in new airplane deliveries
* Estimates based on the base list price as of publication date |
MYTH:
Boeing had a solid financial year in 2004, so we don't need to worry about
health care costs.
REALITY:
In 2004, Boeing's health care spending totaled $1.7 billion—close
to the $1.87 billion Boeing reported in net income last year. On a per-employee
basis, Boeing's health care costs were approximately $8,582, which is an
overall increase of more than 30 percent since 2001. That compares to $6,918
for large U.S. employers, according to a survey conducted by Mercer Human
Resource Consulting, a leading global human resources consulting firm. "Failure
to address the issue of health care costs will impact our ability to be
competitive as a company and to provide employees with the comprehensive
package of benefits we've all enjoyed," said Rick Stephens, senior
vice president of Internal Services.
MYTH:
As health care costs rise, Boeing passes all cost increases on to employees.
REALITY:
"While Boeing has asked employees to help share a portion of the cost
increases through plan design changes or monthly contributions, the reality
is that
Boeing has absorbed the majority of health care cost increases," said
Stephanie Bertholf, director of Global Benefits Policy and Strategy. From
2001 to 2004, Boeing's total health care costs per employee have risen
about $2,000. Of that, the company's cost increased $1,675, while only
about $325 was passed on to employees through premium contributions.
MYTH:
Boeing employees pay more toward monthly health care premiums than employees
at other companies.
REALITY:
In 2004, Boeing contributed approximately 95.6 percent toward the cost
of monthly health care premiums, while employees paid about 4.4 percent.
That 4.4 percent is about 58 cents each day for individual coverage or
$1.74 each day for family coverage. In contrast, according to the Mercer
survey, employees at large U.S. companies paid, on average, 29 percent
of the cost of their monthly health care premiums in 2004. On a percentage
basis, that's more than six times what the average Boeing employee paid.
To remain competitive, Boeing's long-term strategy is to bring employees
closer to market levels of health care cost sharing.
MYTH:
Boeing isn't actively involved in helping manage health care cost increases.
REALITY:
The company is continually working to ensure that employees have access
to quality care at a cost that's affordable. For example, Boeing is fighting
health care cost increases by
- Negotiating with and evaluating health plan carriers. Each
year, Boeing negotiates hard with its major health plan carriers by challenging
proposed rate increases and holding the carriers accountable to performance
and service guarantees. The plans are then evaluated on a quarterly
basis
to ensure they're delivering high-quality care as efficiently as possible.
- Working to improve the health care market. Boeing is active
in several national and local organizations of large employers that are
working
to make a difference in the health care market. Case in point: Boeing
is involved with the Leapfrog Group, a national organization of more
than
170 companies and organizations working to improve hospital patient
safety standards and reduce preventable medical mistakes.
- Providing programs, information and resources to employees.
To help employees manage their health and become more informed health
care
consumers, Boeing provides a variety of programs, information and resources
(see box above).
To your health
Here are some resources Boeing provides to help employees manage their
health.
- Care management programs. Offered by most Boeing health plans,
these programs provide personalized support for people with chronic
conditions such as diabetes or coronary artery disease. To learn what
your medical
plan offers, call your plan through Boeing TotalAccess at 1-866-473-2016.
Hearing-impaired callers can access TTY/TDD services by calling 1-800-755-6363.
- www.BoeingWellness.com. This Web site offers employees and
their families a reliable source for information about medical conditions,
treatment
and prescription drugs. Employees and their spouses who complete the
Mayo Clinic Health Risk Assessment online before May 31 will each receive
a
$25 gift card.
- Health and wellness resources. Many Boeing locations offer
on-site resources such as fitness centers, Weight Watchers at Work and
health screenings.
Discounts for health and fitness equipment and services are available
through the Employee Discount Program.
- Quit-tobacco program. Boeing provides the quit-tobacco program
Free & Clear. This program, free to all employees, spouses and
dependents age 18 and over, combines telephone-based counseling with
nicotine replacement
therapy (when appropriate). Visit http://www.freeandclear.com/boeing
on the World Wide Web for more information.
- Employee Assistance Program. This service connects Boeing employees
and their families with counseling professionals for help with personal
problems or issues. For more information, visit http://eap.web.boeing.com
on the Boeing Web.
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