February 18, 2010
Mark Farrah Associates Provides Insight on Labor Union Health Coverage

KENNEBUNK, Maine--(BUSINESS WIRE)--Mark Farrah Associates, a leading provider of market data and intelligence solutions, looked at labor unions and Taft-Hartley health plans and learned they could benefit from many cost containment strategies currently available. Labor organizations in America have fought for and typically won better health benefits for more than 30 million people on behalf of the 15.3 million unionized workers. However, costs for health insurance benefits were significantly higher for union workers, averaging $4.15 per hour than for nonunion workers, averaging $1.75., according to U.S. Bureau of Labor Statistics reports. On the surface, it appears that this may be due to “richer” benefit packages. On closer examination, union membership make-up may be a key driver of these costs, a belief the unions have been espousing during health reform discussions.

Organized labor, representing one in ten Americans, is one of the most influential purchasing groups in the health care industry. In 2009, the number of workers belonging to unions declined by 771,000 to 15.3 million, largely reflecting the overall drop in employment due to the recession. Heavily unionized occupations and industries include fire fighters and police officers, and transportation and construction. Union membership is higher among workers 55 to 64 years old and lower among those age 16 to 24. Given the demographics of union workers and in many cases high risk occupations, they would be more costly to insurer.

In the latest Healthcare Business Strategy report, MFA analyzed labor unions, Taft Hartley plans and the insurers that have successfully partnered with them.

To read the full text of “Health Coverage for Labor Union Markets,” visit the Healthcare Business Strategy library on Mark Farrah Associates’ website www.markfarrah.com.

About Mark Farrah Associates (MFA)

MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include Medicare Business Online™, the new Medicare Benefits Analyzer™, Health Coverage Portal™, Health Insurer Insights™ and Health Plans USA™.

Contacts:
Mark Farrah Associates
Debra Donahue, 207-985-8484