Oregon’s largest private sector union dropped Kaiser Permanente as a health care option for members — an estimated $17.9 million a year of lost business for the nation’s largest managed care organization.
United Food and Commercial Workers (UFCW) Local 555 represents about 26,500 workers in Oregon and Southwest Washington. About 10,000 of those workers have contracts providing medical coverage through the UFCW Local 555 Employers Health Trust.
Trustees voted to remove Kaiser as an option effective Jan. 1, 2024, on the grounds that members had reported waiting months for doctors appointments. The trust is jointly overseen by representatives from the union and participating employers. Forty-four union employers provide benefits through the trust.
“We want people to have access to good medical care, and that’s not been Kaiser in recent years,” said Local 555 spokesperson Miles Eshaia. “You shouldn’t have to wait to see a doctor.”
An annual report filed with the U.S. Department of Labor and IRS shows that in 2022 the trust paid about $17.9 million to Kaiser for premiums to cover 2,574 workers.
Now all Local 555 members covered by the trust will receive medical benefits through Regence Blue Cross Blue Shield, Eshaia said.
Separate from the trust change, Local 555 in October launched a campaign urging patients to drop Kaiser and switch to a higher-rated provider. DropKP.org, the website the union created Oct. 18, points out that Kaiser’s Medicare Advantage rating dropped to 3.5 of 5 stars in 2023. That’s down from 4 stars in 2022. The site also shares testimonials about long wait times from former Kaiser patients.
Meanwhile, about 900 Kaiser pharmacy and imaging department workers represented by Local 555 remain in negotiations with the health care company for a new contract. Local 555 has been proposing wage increases totaling 42% over four years, plus increased wage differentials for working nights and weekends, and increased staffing.
