United pilots contract, MOU 21-07 — Medical Rate Setting
1. Claims experience for the 2020 Determination Year to set medical and prescription drug rates for the 2022 Determination Year shall be determined based on an assumption of a 4.5% increase in medical costs and a 7.5% increase in prescription drug costs.
2. Claims experience for the 2021 Determination Year to set medical and prescription drug rates for the 2023 Determination Year shall be determined solely in accordance
with Part 2 of Exhibit A to LOA 42, and without regard to Parts 1 and 3 of Exhibit A to LOA 42, as follows:
a. The medical trend rate will equal the average of the medical trend rates from the Provided Health Care Trend Survey Result as selected by the ALPA actuary and the Company actuary; and
b. The prescription drug trend rate will equal the average of the prescription drug trend rates from the Provided Health Care Trend Survey Result as selected by the ALPA actuary and the Company actuary.
3. Claims experience for the 2022 Determination Year and thereafter to set medical and prescription drug rates for the 2024 Determination Year and thereafter shall be determined in accordance with Exhibit A to LOA 42 in its entirety.
4. The application of LOA 42 as set forth herein reflects the actuaries’ best estimates as of the date of this Memorandum of Understanding solely with respect to the setting of medical and prescription drug rates for the 2022 and 2023 Determination Years, and may not be relied upon as precedent with respect to the setting of medical and prescription drug rates for any subsequent Determination Year.
IN WITNESS HEREOF, the parties have executed this Memorandum of Understanding this
day of October, 2021.
FOR UNITED AIRLINES, INC. FOR THE UNITED MASTER EXECUTIVE COUNCIL
Bryan Quigley Sr. Vice-President, Flight Operations United Airlines, Inc.
AS WITNESSESED BY: Captain Todd Insler Chairman, United Airlines MEC Air Line Pilots Association, Int’l
AS WITNESSESED BY:
Mike D. Hansen Managing Director Labor Economics and Labor Relations United Airlines, Inc. First Officer Jeff Brown Chairman UAL MEC Negotiating Committee Air Line Pilots Association, Int’l