Health & Welfare Update
The Indiana/Kentucky/Ohio Regional Council of Carpenters has two Health & Welfare funds, one for Indiana/Kentucky and another for Ohio. Both funds are healthy with growing net reserves.
The Ohio Plan’s net reserves (net reserves are money in the fund, which has no obligation against it and is used to pay our healthcare costs and fund expenses) hit a low of three months net reserves in March of 2019. At the time of print, the Ohio Plan has 5 months of net reserves and is projected to reach 6.5 months of net reserves by April 30, 2021.
The IKORCC fund hit a low of 1.7 months in January of 2016. This plan currently has 9.1 months of net reserves and is projected to reach 10.1 months by December 31, 2021. This positive trend has been achieved in-part by continued efforts to leverage our purchasing strength with other Carpenters Health Care plans from around the brotherhood.
The UBC continues to work to provide the best prescription drug program available in the marketplace. Currently, the IKORCC and Ohio Health Plans participate in a pharmacy benefit program negotiated on a national basis with Express Scripts. This program covers over 30 participating Carpenter Funds throughout the country. Negotiated performance guarantees have resulted in payments of approximately $20,000,000 being distributed to these Carpenters Funds, with the IKORCC Plan’s share over $1,500,000 and the Ohio Plan’s share almost $1,700,000 in the last 3 ½ years. In addition, improved pricing that was implemented as of February 1, 2020, should result in even greater savings.
The UBC has also been working to establish its own specialty pharmacy for Carpenter Funds throughout the country. This is known as the “Level Care” program and has been designed, in large part, to specifically address the continually escalating high costs of specialty drugs for our members and their families. The Level Care program is currently under development and review, assisted by a national consulting firm, independent fiduciary, and other professionals, to ensure compliance with the myriad of state and federal regulations as well as to obtain the best pricing and program features available. We will provide more information when it is available regarding the implementation of this exciting program.
Learn more about IKORCC health insurance and retirement benefits here.