Source: www.unitedafa.org

Last week, dated January 25, United distributed a letter to all Flight Attendants, which has caused a great deal of confusion and concern.

The Employee Retirement Income Security Act (ERISA) requires that Employee Benefit Plans provide a Summary of Material Modification (SMM) to plan participants any time there is a material modification to the plan itself or any time there is a change to the information that is required to be provided in the Summary Plan Description (SPD).

We have heard concern that some have interpreted the language in the letter as meaning their health care benefits were being reduced, and that their costs were increasing. This is not accurate.

Due to changes mandated by Health Care Reform and the loss of Grandfather Status the plan is now required to cover certain preventative procedures, which the letter outlines. This is actually an improvement to our Contract, which limited coverage to the preventative procedures outlined in the Contract, and to certain CPT codes (Procedure Codes).

Falling under the requirements of Health Care Reform necessitated the deletion of those CPT codes and in some instances expands what is covered. The reference to the "loss of Grandfathered status" was as a result changes within the recent ALPA Contract. The loss of the status allows the mandated changes to be applied to our plans.

Neither of these changes has a negative effect on the Flight Attendant and Retiree health care benefits. What you pay for coverage, and the amount reimbursed by the Plan remains the same unless there is an improvement, and AFA agrees to the change, or if it is changed through negotiations.

Our Contract has provisions that states that the company shall not amend any provision of the Medical/Dental Benefit Plans without the prior written consent of the Association (of Flight Attendants).

The letter also mentions the same information regarding the Aetna Select Options and changes required by Health Care Reform.

The change to the Flexible Spending Program refers to the reduction in what an employee couldcontribute on an annual basis to their Health Care Flexible Spending Account (FSA). The reduction from $5,000.00 per year to $2,500.00 per year was as a result of the change in the IRS limits, not a change arbitrarily imposed by United Airlines.

We hope this helps to set aside the concern you may have regarding your health benefits as negotiated between the Association and United Airlines.