No more health coverage for 10,000 airline employees
- Thread starter mrivc211
- Start date
No, no matter who you are or what you do you should have (or be building) a 3-6 month of emergency fund. The fund should cover 3 - 6 months of expenses and isn't necessarily 3-6 months of your take home pay.
The numbers I used earlier were just made up round numbers for the sake of discussion.
ZapBrannigan
If it ain’t a Boeing, I’m not going. No choice.
Does anyone with young kids have an HSA? We're in open enrollment right now and i'm looking at the pros and cons. I've got a 3 year old who gets a few colds/ear infections a year and in a few years might be breaking arms and legs and other such little boy things.
mrivc211
Well-Known Member
Yes you would. 
your assuming it's a new employee. I've been here six years. I've been paying $120/month for the last 72 months. What if the month I get forcefully switched over I break my back? I'm out $5,000 per year. Plus $5,000 the year after.
Also, $15,000 fund for health care for a regional employee? I don't mean to be a smart ads but doyou know what the average salary is? It would probably take 5 years to build that. Most employees make 30-40k/yr, after taxes,rent, cost of living, your left with maybe $5,000 for the yr. No vacations? No buying nothing for 3-5 years? See what I'm getting at?
The thing is, I won't have this problem, I am doing ok for myself. But what about the 10,000 other employees at my airline?
your assuming it's a new employee. I've been here six years. I've been paying $120/month for the last 72 months. What if the month I get forcefully switched over I break my back? I'm out $5,000 per year. Plus $5,000 the year after. Also, $15,000 fund for health care for a regional employee? I don't mean to be a smart ads but doyou know what the average salary is? It would probably take 5 years to build that. Most employees make 30-40k/yr, after taxes,rent, cost of living, your left with maybe $5,000 for the yr. No vacations? No buying nothing for 3-5 years? See what I'm getting at?
The thing is, I won't have this problem, I am doing ok for myself. But what about the 10,000 other employees at my airline?
If in the first two months you break your back then you wouldn't have been paying premiums for years.
It's not risky at all as long as you choose a deductible plan you can afford. Common sense dictates you keep a 3-6 month emergency fund available... probably should lean more on the 6 months side as a regional pilot. So let's pretend a regional pilot's salary is $30k... they should probably have $10k-$15k saved for emergencies. And that's the short term. Long term is you save an amount monthly to fund your HSA. A high deductible plan premium is much less than a traditional plan... saving the difference should work. And that's only if your company doesn't fund your HSA for you.
If the person has no emergency fund, then the HSA would be a poor choice until they build one up.
Bottom line though, it isn't a bad idea for someone to save for and manage their own health care. It's cheaper, gives you more power, and gives you more choices.
mrivc211
Well-Known Member
I'll copy and paste a company pilots experience that fits your situation. Gotta go to Canada....ayyy!
Yes you would.
I see what you're saying. It would suck to get forcefully switched without being financially prepared for it.
But the prior 72 months is irrelevant - it's insurance. You're paying a monthly fee to mitigate risk, not paying into a payment plan.
And just curious - under your new plan will your monthly premiums be lower? Will your company pay into your HSA fund?
No, not a "health care fund" an emergency fund of 3 - 6 months living expenses. The HSA is a health care fund that you control. You only need to fund that up to your deductible level.
I do see... and that's part of the problem. Too many people are trying to live above their salaries. What's more important - a vacation and some new stuff, or your own health care? Is it the insurance company's or the federal government's responsibility to save for an individual's health care?
To be honest, people really shouldn't be buying anything but the basic necessities of life until they are debt free and have an emergency fund in place. It's sound financial management that ensures we control our own life so we don't become burdens on society.
Screaming_Emu
Well-Known Member
Sounds like those of us over at Another Skywest Airline are getting forced into this as well, but at least it won't be until 2012. This year they're just offering incentives.
I really don't like this new plan. The reason I pay health insurance is so that if something happens that I can't afford to take care of (as a regional F/O...that's pretty much everything).
Hopefully something can be done to give us the choice of which one we want.
I really don't like this new plan. The reason I pay health insurance is so that if something happens that I can't afford to take care of (as a regional F/O...that's pretty much everything).
Hopefully something can be done to give us the choice of which one we want.
gtpilot
Well-Known Member
BTW, if SKW is offering the same incentives to join that ASA is currently($750-$2000 seed money for the HSA), it's an incredible deal over the next two years....even after that as near as I can tell the HSA plan offers more flexibility at a cost that is slightly less (with all considerations) than the PPO plan. After the deductible is hit, it basically acts just like the PPO does and the out of pocket max is not much more than in the PPO plan we were offered.
As for having small children, our entire family suffered through flu, strep throat and ear infections during the winter so it was a bit of a shell shock at first, but we rarely spent more on premiums/doctor fees in any one month and it really averaged out nicely during the summer. I think we ended up ahead by about $600 through September, before the furlough.
Again, with ASA's choices if you run the numbers, the HSA plan might cost two or three more if you have an emergency but if not, you'll be saving several hundred up to a thousand dollars a year by using it.
As for having small children, our entire family suffered through flu, strep throat and ear infections during the winter so it was a bit of a shell shock at first, but we rarely spent more on premiums/doctor fees in any one month and it really averaged out nicely during the summer. I think we ended up ahead by about $600 through September, before the furlough.
Again, with ASA's choices if you run the numbers, the HSA plan might cost two or three more if you have an emergency but if not, you'll be saving several hundred up to a thousand dollars a year by using it.
flyingmaniac
Well-Known Member
I thought ShyWest was the best airline of the decade???
SpiraMirabilis
Possible Subversive
By the way, its still better than the "health insurance" offered by Mesa. I never took it, Mesa's "health insurance" had $25,000 annual maximum and a $100,000 lifetime maximum, so essentially you needed health insurance for your health insurance (and yet still paid only 80% in network)
One of the few disgraceful acts of the MEC was that all employees hired after 2002 had this insurance and all employees hired before 2002 had the previous "real" health insurance ($1mil annual max.) In the pilot contract there is the standard phrase that any health insurance offered by one employee must be offered to all the pilots -- but management said if we grieved it they would just pull the grandfathered health insurance from all who had it. So screw the new guys, I guess.
One of the few disgraceful acts of the MEC was that all employees hired after 2002 had this insurance and all employees hired before 2002 had the previous "real" health insurance ($1mil annual max.) In the pilot contract there is the standard phrase that any health insurance offered by one employee must be offered to all the pilots -- but management said if we grieved it they would just pull the grandfathered health insurance from all who had it. So screw the new guys, I guess.
BobDDuck
Island Bus Driver
Doesn't ASA have something in their contract about health insurance? We have a whole section in ours. It's one thing for Skywest guys to have their insurance yanked as they don't actually have any guarantees to anything. It's a whole other issue if ASA has wording in their contract.
mrivc211
Well-Known Member
Again, not to insult you, but you won't be young forever. The older you get, the more health problems on e typically has. You can't base your estimate off of the first few decades of your life. The last few decades will be completely the opposite.
Realms09
Well-Known Member
I agree that is good advice for everyone, no matter the income level. It's good insurance against the debt monster reappearing. I've been focusing on that over the past year and happily just met my goal.
I've also learned that coastal California is not a financially sound place to live. I can only imagine it is even more burdensome for struggling pilots who live here. I could take a 40% pay cut and maintain my standard of living by returning to my home town in Texas.
gtpilot
Well-Known Member
No insult taken - running the numbers for ASA's plans, the HSA still is a slightly better value, regardless of age. The younger and healthier individuals will benefit more, but everyone should still realize some savings most years. And to be honest, I think that is fair and I have no illusions of being 'young' forever.
JoelT
Well-Known Member
I do. A two year old and one on the way. The way ours is set up employee deductible is $2300 and family is $4500. Everything after that is covered 100%. Premiums are $1440 a year. Preventative (physicals, child immunizations, etc) are covered 100%. Max out-of-pocket is $4500.
Cptnchia
Dissatisfied Customer
I have a nine year old and four year old set of triplets. We max out usually around May - June. After that, everything is covered 100% The only problem with ours is that there is no copay, which seems to confuse the office workers.
Same with me. I just end up paying it then get it refunded after the claim goes through. PITA.
surreal1221
Well-Known Member
No.
Well, I'd actually say that yes, there is an individual out there with a young kid who have an HSA.
I just don't know them.
And I'm not one of them.
edit: Ah dang - Capt. Whiteguy . . . I know him.
Are you drinking?
gtpilot
Well-Known Member
ASA (maybe SKW too?) has a $2400 family deductible but it goes to 80% after that, so not quite as good.
I had several office workers insist on only taking a co-pay and then billing me in full after the claim was filed - it's odd to get bills three months later! 