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PUBLIC SERVICE HEALTH CARE PLAN (PSHCP)
Representatives of Treasury Board Secretariat, the public service bargaining agents and the Federal Superannuates National Association (FSNA) have now met on six occasions for purposes of renegotiating the Public Service Health Care Plan (PSHCP). At the same time, the Trust Agreement which expire March 31, 2005 is also being renegotiated. Earlier, the parties had participated in four preparatory "learning sessions" where a series of detailed reports from the PSHCP Trust were received profiling plan experience, benchmarking benefits to other private health care plans, identifying plan design issues and evaluating the option of introducing a pay-direct drug card.
Negotiations are complex and demanding. The parties have exchanged initial perspectives on possible plan design changes and on potential cost management measures. They have also discussed governance issues arising from the first five years' experience with the Trust. In a number of areas of plan design, a requirement for additional information has been identified and the assistance of the Trust is now being sought to meet this requirement.
The next negotiation meeting is scheduled for October 18th and 19th. The agenda is expected to focus again on plan design elements and an assessment of any new information available at that time. TBS representatives have also undertaken to provide a document discussing governance issues in greater detail.
Under the December 1999 memorandum of understanding which outlines the process for renegotiating the PSHCP, unresolved issues are scheduled to be referred to mediation as of November 1st. The parties have discussed this deadline as well as the option of a new agreement providing a short-term extension of the negotiation period prior to any third-party intervention. No decision has been taken to date.
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