The Truth About American’s Medical Proposal

03/27/2018

Brothers and Sisters,

Your bargaining committee has chosen to fight for affordable health care.  Therefore, we have demanded that American Airlines, the largest and most profitable airline in the world, offer the richer Legacy U.S. Airways plans to all Association members.

Under the Association proposal, the company may offer other plans at their discretion.  If the company plans are as “competitive” as the company says they are, Association members will choose them.  However, we won’t let the company eliminate the LUS plans that for years members have fought and sacrificed for.

In yet another assault on this membership, the company proposed to eliminate the LUS plans and offer only more expensive company plans to all Association members with no limits on future cost increases.

For some Association members, a move to the company plans means an increase in annual premiums that you will never recoup –more than $6,500 per year for many employees with families (see comparison at right). And for every other Association member, it means yearly cost increases that, at best, will offset any wage increases, and even erode your compensation to the point of going backward.

Comparison of 80/20 plans LAA/LUS

Individual LUS 80/20 LAA Value +/-
Deductible $450 $400 $50
Out of Pocket Max $3,000 $2,400 $600
Monthly Premium Cost $31.49 $186.68 -$155.19
Annual Premium Cost $378 $2,240 -$1,862

 

Family LUS 80/20 LAA Value +/-
Deductible $900 $1,200 -$300
Out of Pocket Max $6,000 $6,200 -$200
Monthly Premium Cost $106.49 $653.38 -$546.89
Annual Premium Cost $1,278 $7,841 -$6,563

 

This, brothers and sisters, is simply unacceptable.  This health insurance was not forfeited during a time of bankruptcy and sacrifice.  And during this time of record profits, billion dollar stock buy backs, and multi-million dollar executive salaries, all Association members should have access to the best health insurance plans.

 

Fraternally,

Your Association Negotiating Committee

 

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