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Published by Eddy Galuszka

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Published by: Eddy Galuszka on Jul 26, 2011
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The Company and CWA and IBEW agree to continue their efforts to improve
access to quality health care for bargaining unit members and to manage the
cost of Avaya’s medical benefits through the maintenance of cost effective health
care programs. The Joint Health Care Committee (JHCC), will be continued, and
will be responsible for overseeing the implementation, expansion and on-going
monitoring of the Managed Care Programs (Point of Service,, Mental and Health
Chemical Dependency Networks and Prescription Drug Networks) of the Medical
Plan with respect to members of the bargaining units covered by the 2009
National Memorandum.

A major focus of the JHCC will be to develop communication strategies designed
to promote a greater awareness among employees of being value conscious
health care consumers.

JHCC Members

The JHCC will contain four (4) appointees from the Unions (two (2) from the
CWA and two (2) from the IBEW) and four (4) from the Company, including
members with benefits, health, and labor expertise. The JHCC members will
analyze issues which arise concerning the managed care programs of the
Medical Plan and using consensus, will develop solutions to the issues.

JHCC Responsibilities

The JHCC is responsible for assuring successful implementation and continued
operation of a quality health care program for current bargaining unit members.

The JHCC will be a forum for addressing and resolving issues involved in the
implementation and ongoing monitoring and evaluation of the managed cared
programs of the Medical Plan. To accomplish these objectives the JHCC will:
review and comment on bid specifications for the Managed Care
Programs of the Medical Plan, provide input on who should be
invited to bid, meet with various vendors as they make clarifying
presentations on their programs and capabilities, attend briefings
on the outcome of the bid analysis, and make recommendations
on the selection of the carrier to senior management. In addition,
the JHCC will have access to the Master Contracts between
Avaya Inc. and the carriers which administer the POS networks
covering the represented employees. Such access is contingent
upon each JHCC member executing a confidentiality agreement.

National Memorandum


It is understood that such access will encompass all information
that Avaya is legally permitted to disclose.
develop and agree to a system of standards and guidelines by
which POS network operations and performance are to be
gauged. Standards and guidelines are to include quality health
care providers, utilization management, quality assurance,
employee satisfaction and management and administrative
capability. Such standards and guidelines may include
compliance with an accreditation program performed by an
independent, outside organization with experience in evaluating
managed care programs.
monitor and evaluate POS network performance according to
agreed upon standards on a regular basis.
deliberate on systematic problems relating to POS network
administration in order to resolve those problems across all
network sites.
advise the Company to cancel contracts for POS networks which
do not conform to or comply with standards and guidelines
developed by the JHCC.
identify perceived problem areas and develop and implement
solutions to enhance the adequacy, efficiency and effectiveness
of the POS networks.
review and evaluate POS network performances, policies and
procedures (including POS managed care network operations
and related administrator performance) in order to assess
effectiveness and efficiency of the program.

• Based on any such review and evaluation, if the JHCC
determines that a represented plan network area operation
is materially deficient and that such deficiencies will not likely
be resolved in a reasonable period of time with a reasonable
effort by the network administrator, the JHCC may then
evaluate other Company-sponsored POS managed care
operations in the same geographic area and their
administrative performance, whether or not represented
employees participate in such other arrangements on the
same matters as the evaluation of represented plan network
area operations was based.

National Memorandum


• Based on any such review and evaluation, the JHCC may
recommend to the Company to change an existing
represented POS network plan administrator in that area to
an administrator that presently administers a network under
any other medical plan sponsored by the Company in that
area. If the Company adopts such recommendation, it shall
have, if it deems necessary to effectuate such change, at
least one full calendar year to implement such change.

• recommend changes in administrative procedures in order to
improve the quality, efficiency and effectiveness of the Managed
Care Programs.

• review any evaluations and reports (e.g., NCQA/HEDIS) relating
to the POS programs of the Medical Plan. The purpose of the
reviews and evaluations is to identify problem areas, to support
educational efforts, to determine the quality and cost
effectiveness of the plans and programs, and to make
recommendations to the Company and to the bargainers on
policies and procedures to improve the plans and programs.

• recommend administrative guidelines to support methods of
interventions to reduce risk factors associated with chronic
disease. Monitor and evaluate the success of such interventions.
All information and records of a personal and confidential nature
related to these administrative guidelines and procedures shall be
kept confidential by those responsible for the guidelines and shall
not be shared with anyone other than those with a need to know
for a purpose related to the administration of the guidelines and
related procedures.

• recommend strategies to improve the delivery, quality of care and
service provided bargaining unit employees under the Managed
Care Programs.

• develop a consumer information strategy to include POS
networks and HMO’s under the Medical Plan.

• develop strategies and recommendations for expanding POS
network services under the Medical Plan; addressing, for
example, items such as voluntary opt in and competing networks.

• monitor the overall activity of the Third Party Medical Claims
Process which will include receipt of periodic reports on the
results of this process.

National Memorandum


• discuss effective means of sponsoring a wellness network
for represented employees.

• discuss effective means of encouraging Congress to pass
legislation regarding health care issues.

• discuss feasibility of offering a formulary drug program.


The parties will continue to elicit the best professional advice both from medical
and benefit specialists within the Company and Unions and from recognized
outside independent experts, to assist in interpreting the data on Avaya’s health

Network Coordinators

The Company agrees to continue to fund for the period of the 2009
Memorandum of Understanding two (2) representatives, one (1) from the CWA
and one (1) from the IBEW, to work with the Company in the introduction and on-
going maintenance of the POS programs under the Medical Plan.

National Memorandum


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