Challenge
UFCW bargains health benefits for 175,000 packinghouse workers employed at a handful of large corporations. Healthcare costs were rising at double-digit rates. As a result, wage growth was depressed. Employers sought to cut health benefits, shift health costs to their employees. The future of employer-sponsored health benefits was in jeopardy.
Solution
UFCW and the largest employer in the industry conferred with America’s Agenda on design of a solution. In the course of collective bargaining, UFCW and the employer agreed to pilot 3 medical homes in 2 states, applying principles of high-performance care delivery design proposed by America’s Agenda.
Results
In the first year of the pilot, overall health costs rose by less than ½%. Based on those savings, UFCW packinghouse workers received the largest wage increase years. Most important, UFCW members and their families love their new health care experience.
The employer has expanded the new care model to 8 additional locations … and plans more. Other major packinghouse companies are following suit.
