H&W cost decrease in 2025 — rail members to save 10.2% in monthly contributions

On October 10, 2024, SMART-TD, the Cooperating Railway Labor Organizations (CRLO), and the National Carriers’ Conference Committee (NCCC) announced that monthly H&W premiums and employee cost-sharing contributions will decrease by 10.2% in 2025. Members who are covered under SMART-TD’s nationally negotiated H&W plans will see a decrease of $31.67 in their monthly contributions, which will reduce from the current rate of $309.21 to $277.54. The official announcement has been posted to the home page of the Your Track to Health website.

In accordance with the recommendations of Presidential Emergency Board 250, which later became Public Law No. 117-216 (2022 National Agreement), rules were reinstated requiring covered employees to pay 15% of the Carriers’ monthly payment rates for H&W coverage. When that rule went into effect on January 1, 2023, the 15% contribution was $309.21. As the result of a better-than-expected claims experience in 2023, combined with other administrative changes to control costs, the 15% contribution remained unchanged for 2024. This reduction for 2025 may come as a surprise to some, but not to SMART-TD’s leadership.

“It’s no secret that healthcare costs are always on the rise, and on a long enough timeline we should expect to see gradual increases in these rates” said SMART-TD President Jeremy Ferguson. “With that being said, over these last few years we have done a remarkable job of managing our healthcare costs without reducing our benefits, and without causing our members to incur additional out-of-pocket expenses when they need care. Particularly, I would like to recognize the hard work and dedication of CRLO Chairperson Artie Maratea (National President, TCU),  Vice Chairperson Mike Baldwin (President, BRS), and Secretary-Treasurer Ed Dowell (President, ATDA), as well as the prior devotion of former CRLO Chairperson Dennis Pierce (former President, BLET).

“Whatever credit is due to the Unions for managing our end of the H&W Plans, equal credit is due to our members for utilizing their benefits in a smart and responsible manner. I would also like to thank those members who see through the falsehoods and misinformation on social media, as well as the lies being perpetuated by anti-labor media outlets, including Organizations claiming they want to unite rail labor, when in reality their only goal is to undermine our success for their own personal gain. If you recall, many of those bad faith actors said that by 2025 we would be paying extraordinary amounts in monthly contributions. I am proud to say they were wrong yet again.”

While the reduction in costs can certainly be attributed to better-than-expected claim costs in 2024 and positive returns on investments with the H&W Plans’ available funds, this only tells part of the story. In early 2024, SMART-TD and the NCCC agreed to change its Pharmacy Benefit Manager to Optum Rx, effective January 1, 2025. In 2024 the parties also implemented an orthopedic surgery benefit through SurgeryPlus, which waives all out-of-pocket costs for members who choose to have their procedures done by world-class surgeons in the program’s network. Another notable contributing factor is the increased utilization of virtual visits for non-emergency services through Teladoc, and increased utilization of telemental health, which is offered through both Optum Behavioral Health and Teladoc.

“Together these changes produce substantial and meaningful savings, while improving our members’ experience and health outcomes, without compromising benefits or increasing out of pocket costs. My administration remains committed to pursuing these win-win situations whenever possible” said SMART-TD President Ferguson.

President Ferguson added, “If ratified, members who are covered under the CSX, BNSF, and NS tentative agreements that are currently out for a vote will also experience some much needed increases to their benefits, including dental and vision, and an even lower cost alternative medical option for members who do not need coverage for dependents. Most notably perhaps, ratification of those agreements would lock in our existing cost-sharing contributions, copays, deductibles, coinsurance, and out of pocket maximums for at least another 5 years.

“To the individuals and Organizations who are continuing to peddle scare tactics, lies, and misinformation about our past and current tentative agreements, I want to call you out for your cowardly behavior. It is much easier to sit back and make baseless allegations of ‘sellout’ deals than it is to put in the hard work and determination it takes to get elected and lead this great Organization. Our leadership is sworn to our members to achieve victories and produce results, as we have done here, and we will continue to do for generations to come.”

• Additional information about the H&W Plans’ transition to Optum Rx for pharmacy benefits can be found here.
• Additional information about the orthopedic surgery benefit with SurgeryPlus can be found here.
• Additional information about virtual visits for non-emergency services through Teladoc can be found here.
• Additional information about behavioral health telemedicine benefits with Optum and Teladoc can be found here.

For questions or additional information about CSX, BNSF, and NS tentative agreements, please contact your General Committee of Adjustment.

Specific contact information can be found in the member area of www.smart-union.org, or on the SMART Union app (registration and login required).