A Healthier Workforce
Over the past several years, Boeing has taken proactive steps to create a healthier workforce and reduce health care costs. Our strategic approach to pursuing this two-part goal continues to be about offering market-leading health care benefits while remaining competitive and securing our future. Here are the four levers we are working:
- Providing you with access to programs, tools and resources.
- Working closely with health care providers to increase quality and reduce cost.
- Aggressively managing our supplier contracts.
- Engaging at all legislative levels to drive improvements in the health care delivery system.
These efforts are paying off -- many of us are feeling more fit, and we're enjoying a better quality of life. We've also made progress in controlling overall health care costs. Boeing has many health care plans for different groups of employees, both union and nonunion, with some variations by business unit. Though the results vary by plan, the increase in health care costs on average dropped to less than 2 percent in 2011, down substantially from the steady growth rate of 7 to 8 percent annually.
While it's clear we are moving in the right direction on the overall cost of health care, we have more to do to ensure that our health care programs are sustainable and competitive. Controlling future health care costs will remain an ongoing effort in order to sustain Boeing's ability to invest in new products and services, price them to be successful against competitors and, ultimately, enhance our ability to maintain and create jobs for employees. That means our journey to manage rising health care costs and help employees reduce their health risks will continue.
Summary of 2013 Changes
Last year we said that we would use the results of our market analysis of the health care benefits provided by peer companies as the basis for a broader restructuring of Boeing's health care plans for 2013 and beyond. The changes summarized below will take effect on January 1, 2013.
- Revising the employee contribution structure: In order to remain competitive, we are increasing paycheck contribution levels for most of our health care plans. Even so they will remain lower than that of our aerospace peers.
- Introducing the new Advantage+ health plan: The new will be the plan with the lowest paycheck contribution for 2013. Based on an analysis of past health care claims, we believe the Advantage+ health plan will be the most cost-effective plan for many employees and families. The Advantage+ health plan includes the opportunity to establish a portable, tax-advantaged , and Boeing will make an annual contribution to that account. Advantage+ health plan will offer access to the same provider networks as the Traditional Medical Plan. (Advantage+ health plan and HSA are not available in Hawaii or for employees on international assignment.)
- Placing greater emphasis on well-being: We are asking you to do one or two things in 2012, depending on your work group:
- Complete a screening to know your numbers.
- Fill out the health assessment to understand your numbers.
For most employees, your decision to not complete screenings or the health assessment and your covered spouse's or domestic partner's decision to not complete the health assessment will affect your 2013 paycheck contributions for health coverage. See this special for more details.
Boeing understands how important health care benefits are to you and your family. Know that while we've had to make tough decisions and implement changes, the company is committed to offering high-quality health care plans featuring -- affordable, market-leading health care benefits. It is equally important that we continue to emphasize personal responsibility for managing your health, living a healthier lifestyle and making good benefit choices. This growing partnership can improve the quality of our lives, reduce health care costs and maintain Boeing's competitive edge.