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- BUSINESS, Page 43Can't Afford to Get Sick
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- In the phone strike, health care is a bitter new issue
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- The strike was widespread and militant from the start. In
- Boston, 14 striking New England Telephone workers were arrested
- for blocking the company's repair trucks. Customers in New York,
- New Jersey and California lost service when phone lines were
- sabotaged. In Van Nuys, Calif., two striking Pacific Bell
- employees suffered injuries when they were bumped by cars
- crossing the picket lines. The drivers "got angry because we
- called them scabs," claimed Marisa Rotondi, a shop steward for
- the local union. "Things are starting to get pretty bad out
- here."
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- Nearly 160,000 telephone operators, installers and repair
- workers in 15 states launched strikes last week against three
- regional U.S. telephone companies: Bell Atlantic, NYNEX and
- Pacific Telesis. While direct-dial calls in the affected regions
- were handled smoothly by automatic switching equipment,
- customers encountered delays in getting directory assistance,
- repair service and phone installation.
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- The two striking unions, the Communications Workers of
- America and the International Brotherhood of Electrical Workers,
- are taking a tough stand on what has become an emotional and
- high-stakes labor issue: medical benefits. In an era of rising
- health-care costs, companies are trying to shift more of the
- burden to employees. Workers, on the other hand, look upon their
- medical benefits as hard-won rights that have become essential
- to maintaining their standard of living. Declared picket signs
- last week: CUTTING OUR HEALTH BENEFITS IS SICK.
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- While wages have increased at an annual rate of 3.3% since
- 1983, corporations have seen their health-care premiums jump
- 10% to 15% annually, to a current average of some $3,100 a
- worker. Economists expect that total U.S. health-care spending
- will exceed $600 billion this year, nearly 12% of the U.S. gross
- national product, up from 9.1% in 1980.
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- Many employers have tried to attack the problem from two
- angles. Hoping to get better prices for service, companies have
- negotiated favorable rates for their employees at certain
- hospitals and health-maintenance organizations. To reduce
- outlays further, more than 70% of companies require employees
- to pay at least some of the costs of insuring themselves and
- their families; only 51% did so in 1984. Negotiators for Bell
- Atlantic want the company's employees, who currently pay a $150
- deductible for nonhospital medical care, to take on a $150
- deductible for hospitalization and an additional $200 deductible
- for any treatment outside a prescribed network of doctors and
- hospitals. "The whole idea is to make consumers thoughtful
- buyers and to stop rising health-care costs by asking them to
- put something at stake," says Bell Atlantic spokesman Kenneth
- Pitt.
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- The problem with that approach, some health-care experts
- say, is that employees have even less control over medical costs
- than do corporations. "What can an ordinary phoneworker do about
- the prices that hospitals and physicians charge?" asks Dale
- Hiestand, professor of corporate relations at the Columbia
- University School of Business. A better solution, union leaders
- argue, is to work harder to keep costs down. They point to a
- program at BellSouth in which managers and employees have joined
- forces to cut costs, enabling the Atlanta-based company to keep
- its generous health-care coverage intact.
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- For long-term help, corporate America and organized labor
- are increasingly looking to a third party: the Federal
- Government. Several business and labor leaders are pushing for
- some type of national health plan in which everyone would
- automatically be insured. While a big-picture solution is still
- hazy, the problem is now in sharp focus: a debilitating
- financial drain on American workers, companies and the U.S.
- economy as a whole.
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