In fact, there are negotiated rates between insurance companies (or a self insured Co.) and the healthcare provider networks. Teamcare, as it's know has a much stronger position, than any of the individual companies would have on their own.
Even the negotiated cost of using a 3rd party (Cigna,Blue cross, etc), to administer the plan, the bargaining power of its 1.4 million members (customers) far exceeds FedEx, and it's 300k total. I won't claim that the savings in bottom line cost are astronomical. The much better coverage would still cost the Company more than what we have now. I would much prefer all gains go straight into the payroll portion of our compensation.
I actually don't know how the lowered bottom line cost would effect FedEx. Would they transfer all administration to Teamcare for a fee? Ups has almost the same exact coverage as Teamcare, but presumably under their own administration.
http://teamsterslocal804.org/sites/teamsterslocal804.org/files/c6_enhanced_comparison_to_ups_3_0.pdf I just don't know.
NO doubt there are many fixed costs, I agree. I think, being self insured, the highest cost are the actual claims paid. But then again, with our government intervention under way, who knows?
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