LANSING, Mich. (AP) -- Art Luna knows he's going to have to pay more for his health care coverage under a historic agreement worked out between the UAW and General Motors Corp.þþLuna, president of the United Auto Workers Local 602 in Lansing, figures UAW members at Ford Motor Co. and DaimlerChrysler AG probably can count on seeing their share of health costs rise as well, as leaders at both companies have said they'll ask for similar help to cover health care benefits.þþLuna doesn't see the trend ending there.þþAlthough some analysts argue the Big Three automakers are only coming into line with changes already made by many employers, others say the shake-up could mean other workers with good health plans -- teachers, government employees and those who work for major corporations -- could see their health benefits eroded or have a higher share of costs passed along to them.þþ''It's a spiral to the bottom,'' Luna said.þþHe said health care problems have moved beyond what employers can afford to offer to a national health care crisis that needs a national solution.þþ''We're not getting any support from the administration in Washington,'' said Luna, whose local represents nearly 3,000 UAW workers who will help GM open a new plant just west of Lansing early next year.þþThe national UAW has urged a move to a national health care system, and GM and Ford leaders have asked for more federal help with health care costs.þþGM alone spends $5.6 billion annually to cover 750,000 U.S. hourly workers, retirees and their families. Ford spent $3.1 billion to cover 550,000 hourly and salaried workers, retirees and dependents in 2004, and expects that to rise to $3.5 billion this year. Chrysler spent $1.9 billion in 2004 to cover 375,000 people.þþUnder a tentative agreement reached this week with the UAW, GM plans to save $3 billion annually before taxes and slash its liability for retiree health care by $15 billion, or 25 percent. GM retirees would be required to pay up to $752 annually for health care for a family, while active hourly workers would pay more for their prescription drugs and defer $1 an hour in future pay increases to help pay for retirees' health care.þþGeorge Erickcek, senior regional analyst for the nonprofit research group Upjohn Institute, said the Big Three's need to compete in a tough global marketplace makes their situation unlike those of workers in some other sectors of the economy.þþ''When you look at Toyota North America and then look at GM, the legacy costs between the two carmakers is huge. There are about 340,000 retirees for GM and less than 100 for Toyota North America,'' he said.þþErickcek does see possible problems for other work places covering health costs for many retirees. ''That may cause some concern with the teachers' unions here and maybe some of the other unions,'' he said.þþNot everyone agrees.þþ''General Motors didn't do something which is going to cause a large ripple,'' said Michael Chernew, professor of health management and policy at the University of Michigan. Although other companies or economic sectors may also be looking for ways to lower their health care costs, ''I don't think General Motors exerts a lot of downward pressure on them.''þþStuart Paterson, senior research associate in Lansing with the nonpartisan Citizens Research Council of Michigan, said GM's circumstances are so unique that they don't necessarily carry over to other businesses, although he does expect more pressure to move health care costs off employers.þþMost workers already are paying a share of their health care premiums, along with copays for prescription drugs and a portion of their medical bills until they reach their deductible, he said. Many already are in managed health care programs rather than more expensive fee-for-service ones.þþ''My guess is that you're not going to see sort of a serious attempt to say, `General Motors did this and now we're going to do it, too,''' Paterson said. ''There's so much resistance on the part of the people who have the insurance.''þþ
Source: NY Times
