NECA-IBEW WELFARE TRUST FUND NEWSLETTER

VOL. 22, No.2	DECATUR, ILLINOIS	December 2006

Prescription Drug Benefits-Improving to Meet Your Needs

Prescription drug costs are increasing faster than any other healthcare expense, which means having adequate coverage is very important. The NECA-IBEW Welfare Trust Fund provides prescription drug benefits for you and your family. Currently, prescription drug benefits are limited to an annual maximum of $15,000 per person; however, effective January 1, 2007, the Plan is eliminating the prescription drug annual maximum. This change applies to all participants receiving prescription drug benefits under the Plan. This is one way that the Fund can help you and your family meet your healthcare needs.

While the Trustees are pleased to provide this improved prescription drug benefit, they must also ensure that increased costs do not put a strain on the Fund's finances. As a result, the Trustees are researching ways to limit prescription drug expenses, while still maintaining quality benefits. One possibility that the Trustees are exploring are the various programs offered by the Plan's prescription drug costs. Many of these programs work behind the scenes so that you are not inconvenienced.

For example, one program identifies interactions among the medications that an individual is taking to evaluate if one medication is interfering with the effects of another medication. This can be very beneficial to individuals that take multiple medications to manage different effects of their medications.

Fund Continues to Hold its Own

Similar to what was reported in the last issue, Fund expenses continue to be successfully managed, thereby increasing the reserves used to pay benefits. This takes on added significance at this time in light of the number of local unions that have withdrawn from the Plan to participate in the national plan sponsored by the IBEW and NECA. Fund reserves grow when contributions and investments earnings are more than what the Fund pays out in benefits and expanses. The more local unions that leave this Fund, the less employer contributions there are coming into the Fund to pay benefits. Yet, despite this, the Fund remains strong.

While the Trustees are optimistic that this trend will continue, they must remain cautious to protect the Fund's long-term interest. However, as stated above, the Trustees have made an improvement to the Plan's prescription drug benefits (see Prescription Drug Benefits - Improving to Meet Your Needs). In addition, effective November 1, 2006, the Plan will cover humidifiers that are part of CPAP machines. The Plan currently covers CPAP machines, which are machines that are used to help people keep breathing while sleeping. Often, the use of humidifiers can improve the effectiveness of these machines, which is why these humidifiers are now a covered expense under the Plan's medical benefits. However, please note that stand alone room humidifiers are not a covered expense under the Plan.

• Retiree Coverage and Monumental. If you are age 65 or older and covered under the Monumental insured retiree program for Medicare-eligible individuals, you should only contact Monumental about filing medical claims or to check on the status of a claim. For all other issues, such as designating a beneficiary, dropping coverage, or changing an address, you should contact the Welfare Fund Administrative Office. Please note that notifying Monumental of a change does not update your information with the Welfare Fund. The information on file with the Welfare Fund is the information that is used to determine your eligibility for benefits and to provide you with important updates about your benefits. IN addition, often Monumental is not aware of, or does not have the most up-to-date information about, your benefits. For example, Monumental is not responsible for setting monthly payment amounts, determining eligibility, paying death benefits, or coordinating beneficiary or dependent coverage information. Another example is if you notify Monumental of you change in address, but not the Welfare Fund Administrative Office, you would not receive this newsletter and you would not be aware of the prescription drug improvement announced above.
• Update Your Fund Information. If you move or have any changes to your dependent information, be sure to contact the Welfare Fund Administrative Office to update your information. It is also a good idea to periodically review your beneficiary designation information and update it as necessary to ensure benefits are paid to the beneficiary of your choice.
• If Your Spouse has Other Coverage. Remember that if your spouse is eligible for other health care coverage through an employer plan, regardless of the cost to your spouse , your spouse must take that coverage or your spouse will not be covered under the Plan. So, be sure your spouse enrolls in his or her plan during that Plan's open enrollment. If your spouse's employer does not offer health care coverage or if your spouse is not eligible for the coverage offered, you need to submit a letter to the Welfare Fund Administrative Office from the employer to that effect.
• Prescription Drug Benefits and Medicare. The NECA-IBEW Welfare Trust Fund's prescription drug benefits are, on average, as good as the standard Medicare Prescription Drug Coverage. Remember that if you are:
  • An active participant or the dependent of an active participant and are eligible for and enroll in Medicare, the Fund's prescription drug benefits will be coordinated with Medicare in accordance with the Plan's and Medicare's coordination of benefits provisions.
  • A surviving spouse, retiree, or dependent of a surviving spouse or retiree and are eligible for and enroll in Medicare Prescription Drug Coverage (Medicare Part D), you will no longer receive prescription drug benefits under the NECA-IBEW Welfare Trust Fund. You will continue to be eligible to receive medical benefits under the Welfare Trust Fund. However, your monthly premium for coverage under the Welfare Trust Fund will not change as a result of not receiving prescription drug benefits from the Fund.
• Protecting Your Privacy. The Fund has procedures in place to ensure the privacy of your health information under the Fund. For a copy of the Fund's Privacy Policy, you can:
  • Arrange an appointment to review and/or obtain this document at the Welfare Fund Administrative Office;
  • Visit the NECA-IBEW Web site at www.necaibew.org to view and/or download a copy; or
  • Request, in writing, a copy from the Welfare Fund Administrative Office.
• Women's Health and Cancer Rights Act . As required by the Women's Health and Cancer Rights Act of 1998, the Plan provides medical and surgical benefits for mastectomy-related services, including reconstruction and surgery to achieve symmetry between the breasts, prostheses, and complications resulting from a mastectomy (including lymphedema). These benefits are subject to the Plan's deductible and coinsurance provisions.