Issue
likely battleground in coming PS&T negotiations
PEF joins fight
against soaring Rx costs
By DEBORAH A. MILES
Concerned with skyrocketing costs for prescription drugs,
PEF President Roger Benson joined other union officials
at a daylong forum sponsored by the state AFL-CIO Task
Force on Prescription Drug Prices.
The 1-year-old task force is examining escalating
prescription drug costs and the effect on union members,
retirees and their families throughout New York.
“PEF members value their prescription benefits very
highly,” Benson told union leaders and lawmakers in
Albany at the June forum. “About 14,000 members are
enrolled in various HMOs that are offered to state
employees. PEF is not permitted to negotiate HMO
benefits. As a result, HMO prescription benefits vary
widely.”
For example, some plans allow maintenance drug
prescriptions to be filled at retail pharmacies, while
others allow them to be filled only through mail-order
pharmacies.
Because HMO’s can change prescription benefits
— including copays and drug exclusions — once a
year, Benson said, many PEF members worry about the
continued stability of their benefits.
PEF researched the costs of commonly used medications at
online pharmacies, as someone without benefits might do.
For instance, the brand-name drug Imitrex, used for
treating migraine headaches costs $104.99 for nine 50 mg
tablets.
And Remicade, a brand-name drug used to treat rheumatoid
arthritis, costs $1,000 per dose.
Members using these drugs said they would be unaffordable
without a health plan.
Cost shifting on
the rise
According to a recent bulletin from the American
Association of Retired People, prescription-drug costs
are expected to rise between 11 percent and 18 percent
this year.
“The most common response of health plans is to
raise copayments and/or reduce benefits, because
employers don’t want to pick up the tab,” said
PEF health program analyst Deborah Stayman. “We
don’t want to see members in HMOs having to pay
exorbitant copays for prescription drugs.”
Benson told the task force, “When the economy was
booming and unemployment rates were low, employers chose
to absorb the cost increases, rather than pass them on to
employees. However, now that the economy has slowed,
employers have few qualms about shifting those costs to
employees.
“Employers throughout the United States —
whether they are small or large, manufacturing or
high-tech, public- or private-sector — are facing
another year of double-digit increases in health-plan
premiums,” he said.
PEF prepares for
battle
“It’s clear the state will try to shift more
drug and medical costs to our members when we negotiate
Empire Plan benefits in the coming PS&T contract
talks,” Stayman said. “That’s why we are
working with other unions on the AFL-CIO task force to
develop effective strategies now.”
The task force plans to meet in the fall and issue
recommendations in time for the 2003 legislative session.
It could recommend the state establish a wholesale
operation to purchase prescription drugs at lower prices,
or join other states in a buyers’ cooperative.
“PEF will continue to address this issue,”
Benson said. “Our members are not looking for
special treatment. But they do not want to lose the
access to health benefits for which we have fought long
and hard.
“We will be prepared for a tough fight on this issue
in the 2003 PS&T contract negotiations,” he
said.
|
The Communicator
September 2002
The Official Online Edition of
The New York State Public Employees
Federation
Inside This
Issue:
Features
PEF backs Pataki re-election
bid
PEF Board votes to back
candidates in ’02 races
PEF joins fight against
soaring Rx costs
Early retirement windows
opening
Q&A on 25/55, ERI
9/11; One Year Later:
‘Everything is different’ since 9/11
PEF fights for counseling
Victims’ families
grateful for PEF’s help
Contributions of PEF
activists missed
PEF to dedicate memorial
Departments
President's Message:
Endorsements and Loyalty
You Said It: Member's
letters this month
Member Mobilization: 8 steps
to success
Legislative Action:
Retirement, whistleblower laws
Nurses' Station: Help make
new future for nursing
Retirees In Action: Lucky to
get 1% COLA
PEF Membership Benefits
Program & Travel Corp
Union Matters
2002 Convention Preview
PEF researcher’s
discovery offers hope
Members show interest in
PS&T negotiations
Division 236 at Parole fully
mobilized
Members at Labor Dept. win
back rights
PEF fights big chemo bills
PEF vets keep wagering safe
bet
PEF wins OT pay
Highlights of PEF Exec
Board’s meeting
Member’s kids wins
scholarships
Support true charities, job
security
GET OUT THE VOTE!
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