Increasing Plan Income

Health care costs have been increasing steadily over the last few years. As a result, the Trustees are continually monitoring the Plan’s expenses to ensure that the Plan is prepared to handle these increased costs. As costs increase, the Trustees must find ways to increase income. One way todo this is by increasing the contribution rate that employers pay for each hour that active employees work. Since employer contributions are the biggest source of income to the Fund, effective June 1, 2004, the hourly contribution rate will increase by $.25, bringing the new contribution rate to $5.15.

Retiree Rates as of June 1, 2004

Retirees make self-payments for retiree coverage. This money, along with contributions made by employers, is deposited in the Trust Fund and used to pay benefits under the Plan. Periodically the actual cost of providing retiree coverage is reviewed to ensure that the health care expenses paid do not exceed the money available to pay for those benefits. In addition to the increase in the employer contribution rate, the retiree self-pay rates are increasing as of June 1, 2004. The new composite monthly self-pay rates are as follows.

Retiree Monthly Self-Pay Rates Effective June 1, 2004

Age of Retirement	Retirement before 1-1-02	Retirement on & After 1-1-02
Under Age 62	$792.00	$792.00
Age 62 to 65*	$396.00	$594.00
Age 65 and Over	$396.00	$514.80
Non-Medicare Disabled and Surviving Spouse	$594.00	$594.00

* When an employee becomes Medicare-eligible, rate is based on “Age 65 and over.”

When You Are Considering Retirement

When you retire, your benefits under the Plan for active participants will cease. However, you may be eligible to continue coverage by electing COBRA continuation coverage or, if eligible, retiree coverage, for yourself and your eligible dependents.
One requirement for retiree coverage is that you must have been eligible for coverage under the Plan for at least 45 out of the 60 months immediately before the Welfare Fund Administrative Office receives your written application for benefits. Therefore, if you retire from covered employment, it is important that you do not wait too long before contacting the Welfare Fund Administrative Office to apply for retiree coverage.
When you are considering retirement, of if you have just retired, to apply for coverage, you should contact the Welfare Fund Administrative Office within 90 days:

As a reminder, generally to be eligible for retiree benefits due to retirement, you must:

You are required to submit a written application for benefits to the Welfare Fund Administrative Office. Once your application us submitted, remember that the Welfare Fund Administrative Office will look at your last 60 months before the application is received to ensure that you were eligible for benefits for at least 45 of those months. If you have any questions about your eligibility for retiree benefits, be sure to contact the Welfare Fund Administrative Office.

Save Money For Yourself and The Plan

Follow The Coordination of Benefits Provisions to Save the Plan-And You-Money
The Plan has been designed to help you meet your health care expenses. However, benefits paid under this Plan are coordinated with any coverage you or your dependent has under other plans-this is known as coordination of benefits. This Plan’s coordination of benefits provisions allow the Fund to save money because it limits the amount the Fund pays if an individual has coverage under another plan, including medical, prescription drug, dental, hearing, and vision plans.
If you and/or your dependent are covered under more than one plan, one plan pays first and the other plan adjusts its payment so that the total benefits paid do not exceed the actual expenses incurred. Therefore, when our Plan pays after the other plan, our Plan pays less, yet the individual still receives the maximum benefits possible under both plans.
However, keep in mind that you must follow all provisions of each plan to receive the maximum benefit of these coordination of benefits provisions. The Plan assumes that an individual has followed all provisions of a plan when it calculates how much to pay. For example, John, a participant in our Plan, covers his wife Sue as a dependent under the Plan. Sue is employed and covered under a Health Maintenance Organization (HMO) through her employer. When Sue went to a doctor for her last visit, she didn’t use her HMO doctor. Under Sue’s HMO plan, her doctor’s visit will not be covered. Since our Plan assumes that Sue has followed all provisions of her HMO plan, our Plan would not pay anything, because had Sue gone to an HMO doctor, her plan would have paid 100%.
As you can see, it is very important that you follow the provisions of all plans under which you or a dependent are eligible for coverage-that includes prescription drug, dental, vision, and hearing coverage. If you have questions regarding the Plan’s rules for coordinating benefits, call the Welfare Fund Administrative Office.

Use PPO Providers to Save Money
Providers that participate in a Preferred Provider Organization (PPO) network have agreed to negotiated rates that are usually lower than non-PPO providers’ rates. That means that when you use a PPO provider, your total expense will be lower, which means you pay less and so does the Plan.
However, to receive the financial advantages of a PPO, you must use the services of doctors and hospitals in the PPO network under which you are covered. Our PPO program gives you flexibility in how you receive medical care. Each time you seek care, you have a choice of using a PPO or non-PPO provider. The amounts you pay are different for PPO and non-PPO services even though the same wide range of services and treatments are covered.
In addition, PPO providers generally file claims for you. Be sure to show your PPO on non-PPO provider your ID card so they know how to file claims with BlueCross BlueShield.

A Couple of Reminders About Dental and Vision Network Providers
Remember that as of April 1, 2004, the Plan changed the vision network provider and added a dental network. While you may visit any dental or vision care provider you wish, when you use a network provider your benefits will go further because network providers have agreed to negotiated fees.
To find a dental network provider:

COBRA Continuation Coverage

In certain situations when your coverage under the Plan would otherwise end, you may be eligible to continue coverage by electing COBRA Continuation Coverage. Effective June 1,
2004, the only COBRA Continuation Coverage option available under the Plan will include medical, prescription drug, dental, and vision benefits for participants and their dependents, as well as death and accidental death and dismemberment benefits for participants (weekly disability benefits are not available). The cost of this comprehensive package of benefits for individuals electing COBRA Continuation Coverage on or after June 1, 2004 is $610 per month. This amount is subject to change yearly.
Before June 1, 2004, the Fund provided different levels of COBRA Continuation Coverage, including medical benefits only or medical benefits with all other benefits, except weekly disability. If you are currently receiving COBRA Continuation Coverage, this change does not affect you; your benefits will not change. New COBRA Continuation Coverage rates were effective as of June 1, 2004. Contact the Welfare Fund Administrative Office for rates effective June 1, 2004.
For more information on COBRA Continuation Coverage, refer to your Summary Plan Description (pages 23-24 of the active participants’ version).

Keep Your Fund Records Up-To-Date