UTU, NCCC agree to expand healthcare choice in railroad industry by offering a national Blue Cross Blue Shield option

UTU, NCCC agree to expand healthcare choice in railroad industry
by offering a national Blue Cross Blue Shield option

Michigan Blues to provide traditional, managed care for UTU members

CLEVELAND – The United Transportation Union (UTU) and the National Carriers’ Conference Committee (NCCC) have agreed to expand healthcare choice for 43,000 UTU members working on Class 1 railroads by adding Blue Cross Blue Shield coverage as an option.

Beginning January 1, 1999, the 43,000 UTU members who work for six major railroads – Union Pacific, CSX, Norfolk Southern, Burlington Northern Santa Fe, Kansas City Southern and Conrail -- will be able to choose Blue Cross Blue Shield as their health insurance provider. Only UTU members employed by these carriers are eligible. Currently, United HealthCare and Aetna provide healthcare insurance for all union workers, including UTU members, under the national plan.

"Our members have been saying that they want greater choice in their healthcare options and that is what they are getting," said Charles L. Little, UTU International President. "At a time when American healthcare consumers' choices of doctors and hospitals are being increasingly restricted, this union is giving its members more choice and freedom to control their personal medical decision making."

Robert F. Allen, chairman of the NCCC, said, "We believe that this additional option will be consistent with our desire to provide quality healthcare for our employees while managing those costs to the best of our ability."

Blue Cross Blue Shield of Michigan will provide both traditional comprehensive and managed healthcare insurance options nationally. For UTU members who select Blue Cross coverage, the Michigan Plan will also provide all administrative services.

David Kee, vice president for Chrysler, Kmart and national accounts for Blue Cross Blue Shield of Michigan, said, "Blue Cross Blue Shield of Michigan is pleased to welcome this national group to our Blue family of products. Multi-state groups represent an important market for us and showcase our ability to administer healthcare coverage through a network of Blue plans across the country."

UTU members who select Blue Cross Blue Shield will also receive mental health and substance abuse services from Magellan Behavioral Health, the nation's largest managed behavioral healthcare company serving 61 million persons in the United States and Canada. Its parent organization, Magellan Health Services (NYSE: MGL), is the country's leading specialty managed care organization.

John J. Wider, president and chief operating officer of Magellan Behavioral Health, said, "We are delighted that the UTU and NCCC have selected Magellan to serve their members. As a national organization, Magellan will offer improved services to UTU members across the country."

In addition, Minnesota Mutual Life Insurance Company will provide life insurance coverage.

Merck/Medco will continue to administer the prescription drug plan.

UTU members will have the ability beginning January 1, 1999, to choose Blue Cross Blue Shield, United HealthCare or Aetna. Value Options will continue to offer mental health and substance abuse services for UTU members who choose to continue with United HealthCare or Aetna.

Information on Blue Cross Blue Shield enrollment will be made available to UTU members in the future. The new Blue Cross Blue Shield healthcare option mirrors the current national health and welfare plan.

United Transportation Union, with 150,000 members, is the largest rail and transportation union in North America. It represents locomotive engineers, conductors, brakemen, switchmen, firemen, hostlers, yardmasters, bus operators, airplane pilots and other transportation workers in the U.S. and Canada.