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Hospital Workers Urge Talks: Union Accuses Management of Shifting Health Care Costs to Employees, Taxpayers

Posted on: Friday, 24 March 2006, 06:00 CST

By Julie Forster, Pioneer Press, St. Paul, Minn.

Mar. 24--The union representing 3,300 workers at eight area hospitals tried to turn up the pressure on management to resume contact talks Thursday, releasing a report that claims the hospitals are shifting health care costs to employees and taxpayers.

The hospitals -- part of the Fairview, North Memorial, HealthEast, Children's and Methodist systems -- presented what they called their "last, best and final" contract offer earlier this month, urging the union to put it to a vote.

Instead, the Service Employees International Union Local 113 is circulating a petition aimed showing support for new talks. The union represents support workers at the hospitals, including nurse's assistants, dietary aides and environmental technicians.

A report commissioned by the union claims that the health insurance plans offered by the five hospital systems include significant cost-shifting measures. It was presented Thursday at a Capitol press conference that included Attorney General Mike Hatch.

Increased out-of-pocket costs -- including deductibles and co-pays -- are creating a burden for a work force that typically earns between $12 and $16.50 per hour, depending on experience. Many are taking a pass on the coverage.

The study cites a recent union-conducted poll that found that 30 percent of hospital employees obtain health care coverage from other employers, in the private market, from public health programs like medical assistance and Minnesota Care, or are uninsured.

Talks broke off March 9. The employer group's last offer would give an 11 percent wage increase over three years and improve the portion of the premium covered by the employers, raising it by 5 percent to 75 percent of the cost for family coverage. Single coverage would remain the same, with the employer covering 85 percent of the premium.

The union says the average deductible for in-network single coverage is $721. Average deductibles for family coverage is $1,443, and can run as high as $2,800.

As hospitals shift more cost to workers, fewer employees take coverage and as a result, the cost shifts to other employers and taxpayers, said Holly Rodin, a senior health systems researcher for the union.

The union report notes that workers in many industries are shouldering a higher percentage of medical costs through what are broadly referred to as "consumer-driven" health care.

"The idea of calling it consumer-driven, simply means costs are being shifted to employees," Hatch said.

The hospitals, in a statement, called on the union to allow members to vote on what it called "a strong offer, one that balances employee compensation with our responsibility to be good stewards of the community's resources."

Julie Forster can be reached at jforster@pioneerpress.com or 651-228-5189.

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Copyright (c) 2006, Pioneer Press, St. Paul, Minn.

Distributed by Knight Ridder/Tribune Business News.

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Source: Saint Paul Pioneer Press (St. Paul, Minn.)

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