On Track!

Year to date through September 30, 2006, the financials reflect an excess of revenues over expenses of $1,484,425. Plan #1000 (active membership) has produced an excess of expenses over revenues of $2,478; Plan #2000 (full rate membership including disability annuitants) has produced an excess of revenues over expenses of $8,838; Plan #3000 (secondary membership excluding Medicare) has produced an excess of revenues over expenses of $95,083; Plan #4000 (secondary to Medicare with drugs) has produced an excess of expenses over revenues of $51,326; Plan #4100 (secondary to Medicare without drugs) has produced an excess of revenues over expenses of $1,022,116; Plans #5000/#5500 (secondary to UHC 46000 and exhausted Plan 46000 consecutively) produced an excess of revenues over expenses of $35,398.

There are presently 22 full time CARE employees. Darlene Laminack was hired on August 21, 2006 to replace a position vacated in the Benefits/Customer Service/Provider Department.  All employee benefits were reviewed and renewed effective September 1st.

Mid July of this year, we began working with the CARE actuary on the creditable coverage project. The results of the actuarial report is that in order for CARE’s Plan #4000 (secondary to Medicare with drugs) to be deemed “creditable” according to the government, we will need to increase the prescription drug annual maximum from $1,550 to $2,000. We will discuss this in more detail later in the meeting during the presentation of the 2006 actuarial report.

It has been a very busy summer at CARE. The staff is working diligently on several projects. The IS Department is assisting me in the search of new microfilm/scanning equipment. At this time, we are still in the process of evaluating our current and future needs and bid proposals are being reviewed as well. Due to the fact that implementing this type of equipment affects all CARE departments and because it will be rather costly, I anticipate we will not make any changes before the spring of next year. The drafting of two CARE Summary Plan Descriptions (rule books) was quite an undertaking, but we are pleased with the end results.

In closing, it has been a good year at CARE. I am very proud of the CARE staff as they continue to keep the wheels turning and always “step up to the plate” when asked to take on any task. We will be extremely busy in the coming months  implementing / programming the 2007 dues and benefit changes, creating the CARE newsletter and dues/benefit notices to the membership and creating a new CARE Plan. I thank you once again for your support and counsel.

This is a summary of the annual report of the Consolidated Associations of Railroad Employees Health Care Trust Fund, which is a Welfare benefit plan – Health with the Federal Identification Number of 75-6493465, for the year ended December 31, 2005. The Form 5500 annual report has been filed with the Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

Consolidated Associations of Railroad Employees Health Care Trust Fund has committed itself to pay all health claims incurred under the terms of the plan.

The value of plan assets, after subtracting liabilities of the plan, was $8,556,264 as of December 31, 2005, compared to $7,729,981 as of December 31, 2004. During the plan year the plan experienced an increase in its net assets of $826,283. This increase includes unrealized appreciation or depreciation in the value of plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $14,200,048 including employer contributions of $18,219, employee contributions of $12,505,604 and earnings from investments of $282,712.

Plan expenses were $13,898,765. These expenses included $1,748,489 in administrative expenses, $12,150,276 in benefits paid to participants and beneficiaries.

You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report:

1. An accountant’s report;

2. Assets held for investment;

3. Fiduciary information, including transactions between the plan and parties-in-interest (that is, persons who have certain relationships with the plan);

To obtain a copy of the full annual report, or any part thereof, write or call the office of Shelly Hawk, who is the plan administrator, P.O. Box 6130, Temple, Texas 76503-6130, (800) 334-1330. The charge to cover copying costs will be $3.00 for the full annual report, or $.25 per page for any part thereof.

You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge.

You also have the legally protected right to examine the annual report at the main office of the plan at 4912 Midway Drive, Temple, Texas and at the U.S. Department of Labor in Washington, D.C. or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to Public Disclosure Room, N-5638, Pension and Welfare Benefit Programs, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.

2007 DUES RATES

The CARE Board of Directors at their meeting held October 30, 2006, set the Active Dues Rate for 2007 at $733.00. The new Active dues rate will go into effect February 1, 2007. The deduction from your January 2007 earnings will establish membership for the month of February 2007. The new rate of contribution will be reflected on your January 2007 pay stub.

Active Employees ................................................................$ 733.00

Railway Portion ...................................................................$ 355.10

Employee Portion.................................................................$ 377.90

PLAN #1000 - FULL RATE MEMBERSHIP 

Employee - COBRA (18 or 29-month eligibility) 

$ 747.66 monthly ($ 2242.98 quarterly)

Retired Employee, Disability Annuitant, Dependent or Surviving Spouse

$ 1481.00 monthly ($ 4443.00 quarterly)

Employee or One Dependent

$ 60.00 monthly ($180.00 quarterly)

Employee and One Dependent

$ 120.00 monthly ($ 360.00 quarterly)

Employee and Two or more Dependents 

$ 180.00 monthly ($ 540.00 quarterly)

Retired Employee, Spouse, or Surviving Spouse 

$ 206.00 monthly ($ 618.00 quarterly)

Retired Employee, Spouse, or Surviving Spouse 

$ 131.00 monthly ($ 393.00 quarterly)

Retired Employee or Spouse

$ 190.00 monthly ($ 570.00 quarterly)

Retired Employee or spouse

$ 300.00 monthly ($ 900.00 quarterly)

Spouse or child of retired employee 

$ 380.00 monthly ($1140.00 quarterly)

Spouse and dependent children

$ 715.00 monthly ($2145.00 quarterly)

If your dues are currently being paid through Bank Draft, your deduction will automatically be deducted for the month of January 2007. If you pay dues direct to CARE, you should remit your dues on or before January 1, 2007.

The annual prescription drug maximum for Plan #4000 increased to $2,000 for Plan Year 2007. By increasing the annual maximum, this allows CARE to provide creditable prescription drug coverage to its Medicare members for 2007.

Berenice Roberts completed 25 years of service with the Consolidated Associations of Railroad Employees on October 12, 2006. Berenice is the manager of the CARE Membership Services Department.

She developed a commendable relationship with the Railway Company and its employees through her efforts to streamline the initiation of the bankdraft. She has worked diligently to see that the membership dues are applied properly. She provides the finest quality service to the membership and uses her technical skills to coordinate the CARE Newsletter and works closely with the Data Processing Department on various projects. She is also instrumental in maintaining the enrollment and disenrollment of the CARE HCPP contract. Berenice enjoys her role with this Association as well as taking care of her family.

We have all had the opportunity to work with Berenice through the years and wish to congratulate her for her accomplishments and thank her for a quarter of a century of dedication to this organization. Here’s to her continued success!

“Berenice, we celebrate your 25 years of service to this Association and its membership. I have enjoyed working with you for over 20 years and genuinely applaud your accomplishments. May your dedication to this organization and the effort you put forth with your service to CARE help to provide you and yours with a wealth of happiness and a brilliant future.” — Nonie Tomastik

“I have had the pleasure of working with Berenice for over 20 years. This I know about Berenice, for many years she has kept the Membership Services Department running smoothly with only she at the helm. She has proven to be a dedicated, hard working, employee and is compassionate to the CARE membership. She is always available to help her fellow employees with questions or concerns about our membership. Berenice is also known for her lighter comical side, with an occasional prank or joke and every now and then a song over the intercom as a morale booster. She often keeps us laughing. Berenice is a wonderful co-worker and friend to me. Congratulations on your years of service with CARE.” - Terry Booth

“It’s a true pleasure to work with Berenice. She and I have worked together almost 10 years and in the last two years my office has been next to hers and we have just about got morse code (done by knocks on the wall) in between our offices down pat. She is the jokester of all jokes in this office and always keeps us laughing.

When it comes to the Membership Department she is a one woman show and keeps everything flowing at all times. She is a very hard worker and is a CARE team player.” —  Kathy Hampton

“I have truly enjoyed working with Berenice during her years with this Association. I have had the privilege of watching her grow in her job. Berenice is a very dedicated employee.

Because of her deep compassion for the members of CARE, she has suggested many improvements to the Health Care Plan. In addition to working with the members on a daily basis, she enjoys creating the periodic “newsletter” to keep members informed of CARE’s activities. On a lighter side, Berenice is the class clown. She makes all of us laugh from time to time. Berenice is also a dedicated wife, mother and most recently a grandmother. I am honored to call her “friend.” Let me at this time congratulate you, Berenice, on your years with CARE and I wish you many more happy years.” —  Virginia Jeffcoat

“Berenice, you are a lot of fun to work with. I know our members adore you. So, congratulations on 25 YEARS of service to this Association! And Congratulations on becoming a “grandma” even though you don’t look like one. Your friend and coworker.” — Debbie McCoy

Virginia Jeffcoat has worked for the Association since June 1980, and has acted as the manager of the Claims /Subrogation/Microfilm Department since 1984.

Virginia has a son who lives in Maryland and a daughter living in Rogers, Texas. Her husband works as a bio-medical engineer at Scott & White Hospital. Virginia’s hobbies include decorating and painting.  Virginia says she has enjoyed her “many years” with the Association but plans to retire in 2007.

Sharon Christensen celebrates 10 years of service with CARE this year.  Sharon has a daughter, Jessica and son-in-law Daniel and is grandmother to Sophia who is 7 months old. Sharon and her boyfriend Alvin enjoy spending time with their families. Sharon’s hobbies include reading and making greeting cards.

Kim Gallaway has worked for CARE for 9 years.  Kim has 3 dogs and 2 cats. Kim enjoys cookouts and spending time with friends.

Cheryl Johnson began working for CARE March 1, 1999.  Cheryl says coming to CARE was “the best move I ever made.”  Cheryl likes to watch “Law & Order,” enjoys crossword puzzles and tries to spend as much time as possible with family and friends. Cheryl has a daughter, Katherine.

Hilary Miller began working for CARE in January 2000.  Hilary is married with a 9 year-old stepdaughter, Meagan and a 19-month old son, Layten.  Hilary enjoys spending time with her family, taking her kids to the park, watching movies and SHOPPING!

Lindsy Dixon is the newcomer to the Claims Department. She has been with CARE for one year.  Lindsy has a dog, Chico. She is currently working on her associates’ degree in business and plans to pursue a bachelors’ degree.  Lindsy’s hobbies include dancing, traveling, and spending time with friends and family.

Larry Latimer accepted the position of Corporate Treasurer of CARE and began working with us on January 9, 2006.

Larry came to CARE after completing 25 years of service with a local company in Temple, Texas. Larry’s career in accounting began upon his graduation from the University of Mary Hardin-Baylor in 1975 where he obtained a Bachelor of Business Administration in Accounting.

Larry states, “Not only have I enjoyed the challenge of learning a new business, it has been fun getting to know everyone here at CARE. I can honestly say I am happy to be a part of CARE and that everyone here has been so supportive and helpful since day one.”

Larry is married to a Santa Fe retiree’s daughter and has a daughter and two handsome grandsons, ages 4 and 3. When not working Larry enjoys archery, hunting, fishing and golf.

We would like to welcome Darlene Laminack who joined the Benefits/Customer Service Department in August 2006. We all welcome you to CARE.

New Family Members

During 2006 we welcomed new grand babies to the CARE family and would like to introduce them to you:

Sophia Lynn Page is the granddaughter of Sharon Christensen (Claims Department).  Sophia was born February 22 and weighed 6 pounds 6 ounces and was 18 inches long.

Sophia is the daughter of proud parents, Spc. Daniel & Jessica Page. Daniel is currently serving with the 4th ID, 3/67 Armor

and is stationed in Baghdad. Daniel is due home at the end of November.

Nicolas Christopher Bray, born June 16, is the grandson of 

Terry Booth (Benefits/Customer Service Manager). Nicolas weighed 7 pounds 4 ounces and was 18 inches long.

Nicolas is the son of proud parents, Sgt. Chris E. & Brandi Bray. Chris is currently serving with the 4th Infantry Division and is stationed at Camp Falcon Baghdad, Iraq and is also due home in November.  Nicolas has two brothers, Xavier, age 6, and Ethan, 

age 3.

Lilya Rose Vega was born October 4, 2006 and is the granddaughter of Berenice Roberts (Membership Services Manager). Lily weighed 5 pounds 4 ounces and was 18 1/4 inches long.

Lily is the daughter of proud parents, Sarah Roberts & Jose Vega, Jr.

“Are generics as effective as brand-name drugs?” This is a standard question asked of people who are involved with prescription benefits programs. It expresses a common patient concern that has been promoted and fueled by the marketing efforts of many large drug manufacturers.

Actually, for most of this century, the largest producers of generic drugs were the same manufacturers that now prefer to be called “innovator” or “ethical” drug companies. Through the 1950’s, bottles from Eli Lilly, Parke-Davis, and Squibb dominated the pharmacist’s “generics” shelf.

However, when competition made their generics less profitable, they began concentrating on development of drugs that enjoyed exclusive production and distribution rights. With this “patent protection” came higher prices and higher company profits. As patents expired, these companies launched dramatic efforts to maintain their market share and profits.

A universal tactic was to discredit competitive generic equivalents that began entering the marketplace.  In a few cases, the criticism was justified. Through the 1960’s and 1970’s, permissive government regulations allowed some inferior products on the marketplace. Fortunately, these were medications that could accommodate greater deviations in potency.

However, because of the runaway drug price increases of the 1980’s, insurers and government programs began demanding more and better generic equivalents, especially those that could compete with the “block-buster” drugs that were then losing patent

protection.

As regulations became more stringent, generic companies began upgrading facilities and improving manufacturing practices. Many generic plants became better and more modern than those of the innovator companies, some of whom then began to contract production to these rising “generic powers.”

Suddenly, (as attributed to Yogi Berra), it became, “deja vu all over again!” As their brands began losing patent protection, big drug companies rushed to acquire generic manufacturers or to develop exclusive production and marketing relationships. These actions allowed innovator companies to share in generic profits and “ride the price down” instead of watching the “bottom fall out” of their markets.

However, because brands still commanded higher prices, these companies continued to condemn generics — even when their own factories produced them.

Today, the only significant difference in most brands and their generic equivalents is the cost to the consumer. It is not uncommon for you to pay ten to twenty times as much for a brand drug that may have rolled off the same assembly line as its generic equivalent!

This means that your money can be wasted when you pay for a brand that has an acceptable generic equivalent. Although there are a few specific products that may be exempted from this rule, these are usually medications that have shown to have unique qualities that qualify them as exceptions, and fortunately they often are not excessively expensive.

To stretch your healthcare dollar, ALWAYS be sure to ask your doctor if he can prescribe a generic alternative for your medical condition!

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Senior Corner

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Prescription drug coverage was the topic that captured headlines when the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 first became law. But buried in that law is another provision that will impact the budgets of some seniors. Starting in 2007, premiums for Medicare Part B will be calculated on a sliding scale. Higher income enrollees can expect to pay more for their coverage as a result of this change. Here’s what to expect.

Medicare Part B covers physician services, outpatient hospital care, and a variety of other services. The basic Medicare Part B premium this year is $88.50 a month ($1,062 a year), and it will increase a projected 11.2% to at least $98.40 for all enrollees in 2007. (The official inflation-adjusted figure was not available at press time.)

In addition to the basic premium, unmarried individuals with income of more than $80,000 and married couples with income of more than $160,000 will have to pay a surcharge. With the addition of the surcharge, enrollees with income at the highest end of the scale could see their premiums almost double for next year.

The basis for the 2007 surtax computation is 2005 adjusted gross income (AGI) plus any tax-exempt interest received in 2005, any excluded interest on Series EE U.S. savings bonds used for education, and any excluded foreign earned income.

Rob is single and reported $60,000 of AGI on his 2005 Form 1040. He also received $25,000 of tax-exempt municipal bond interest in 2005. Because Rob’s modified AGI of $85,000 is more than $80,000, he’ll have to pay a premium surcharge for 2007.

Further increases in the Medicare Part B premium will be phased in for higher income enrollees through 2011. Taxpayers who itemize their deductions should be sure to include Medicare Part B premium payments in their medical expenses.

Article provided by Brockway, Gersbach, McKinnon & Niemeier, P.C.

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After many years of providing affiliated providers for our membership in the state of Colorado, Effective January 1, 2007, CARE members will no longer have access to Mountain Medical Affiliates PPO Network.

PPO coverage in Colorado will now be provided by CCN PPO Network, which has a vast amount of coverage throughout the state. If you are part of the membership affected by this change and have questions or concerns, please contact the CARE Customer Service Department at (800) 334-1330.

CARE is currently having an Open Enrollment for the following plans:

Plan #3000, Plan #4000, Plan #4100, Plan #5000 and Plan #5100.

For enrollment information on these plans contact the

CARE office at 1-800-334-1330.