High Price Pressure
Steadily rising insurance rates cause health care crisis
“After you hear our story, it’ll make your head spin.”
Edward Kazmierczak wasn’t kidding. But the lengths many have to go to get health insurance in the United States should come as no surprise.
The UAW Local 771 member and his wife, Katie, both worked at National Twist Drill and Tool Co. (NTD), once a top manufacturer of cutting tools. At its peak, NTD employed 2,300 workers. But NTD was bought by Lear-Siegler in 1982, and the company moved to the Carolinas the following year. When that happened, the Sterling Heights, Mich., couple lost their jobs and were forced to retire. Ed had 42 years in, and Katie, 26 years.
About six months later, the company canceled their health insurance. This shows why it’s so important for the UAW to continue to protect retirees’ pension and health benefits.
In response to the elimination of health care coverage, 700 of their union brothers and sisters joined forces in 1983. Guided by the late Clair Phillips — former Local 771 president and retired UAW international representative — they formed GIFT, the Gift Insurance Fund Trustee. Under GIFT, the workers got an affordable group rate from Blue Cross Blue Shield of Michigan.
In 1983, their monthly premium was $77 per person ($17 of that went for prescription drug coverage). But by November 2001, their monthly premium had skyrocketed to $523.90 per person (with $338 for prescriptions).
Katie’s monthly pension is about $300, plus a modest Social Security check. Ed collects a pension of about $500, plus Social Security.
So they opted for more limited Blue Cross coverage for $90 a month per person. But it didn’t cover prescription drugs.
“Up until then, we were both strong as a horse,” said Ed, 79. “That’s why we took Blue Cross without prescription drug coverage. But that all changed when I needed both knees replaced and things started going downhill.”
The Kazmierczaks are among the last of the founding members on GIFT’s board of directors. Ed is president, and Katie administers the local’s group Blue Cross program.
Another premium increase is expected in December and Katie is worried about what will happen when she sends out the notice in November. There are only 88 subscribers left from the original 700 workers.
“Every time there’s an increase, 10 or 15 people drop out,” said Katie, 83. They say, ‘I don’t know how I’m going to pay for it. Do I quit eating or not pay my bills that I’m already behind on?’ ”
Luckily, Katie takes only one weekly medication — which costs a whopping $77 each month for just four pills. Ed, a military veteran who has high blood pressure and emphysema and uses oxygen, gets his medical equipment and prescriptions free through the Veterans Administration.
“And that’s only because I found out about the VA program about two years ago while talking to a friend at a party,” Ed said.
Now his breathing machines, hearing aids and medicines — which would cost about $7,500 a year out of his own pocket — are covered.
All of this has made Ed and Katie even more determined in the fight against costly prescription drugs. In fact, they’re on a newly formed committee of the Metro-Detroit Council of Senior Citizens focusing on that very subject.
The committee’s first project is a survey of area stores to see which ones offer the lowest prescription drug prices.
“For some folks in their 80s and 90s, the cost of prescription drugs is more than their health insurance coverage,” Katie said.
