UTU - ATTACHMENT "B"

November 16, 1994

    SECTION 6 NOTICE - HEALTH & WELFARE

ARTICLE I.  GROUP POLICY GA-23000

A.    Life Insurance - Currently $10, 000, increased to $25,000.

B.    AD & D - Increase coverage to $25,000.

C.    Retiree Life Insurance - Currently $2,000, increased to $10,000.

D.    R&C charges for surgical, anesthesia, chemotherapy, radiation, x-ray and lab services to be increased to the 95th percentile under HIAA.

E.    R&C charges for physician, office, hospital and home visits for employees and covered dependents increased to the 95th percentile under HIAA.

F.    Include extended benefit coverage for eligible dependents for one (1) full calendar year following the death of a covered employee.

G.    Provide extended coverage during each legal strike or lockout (4 months) each.

H.    Eliminate any COB between GA-23000 and on-duty injury coverage.

I.    Increase COB benefit to allow reimbursement up to a maximum of 100% of allowable charge.

J.    Provide that furloughed employees, for which the employer has transmitted at least 3 monthly payments under the policy contract prior to furlough, have continued coverage during furlough until the end of the twelfth month following the month in which the employee last performed compensated service or received vacation pay.

K.    Provide that an employee suspended or dismissed from service and thereafter found or held to have been improperly suspended or dismissed, in whole or part, will be provided full coverage under the plan just as if he or she had not been suspended or dismissed in the first place.

L.    Provide that there shall be no exclusion or reduction of benefits for medical care or treatment performed by legally licensed physicians and/or authorized medical personnel at or in ambulatory, surgical or medical centers, or other mobile-type facilities.

M.    Provide that the receipt of vacation pay by a furloughed employee will require that his or her employer make payment to the insurer or other contributions to the plan, and such employee will be so covered by the plan until the fourth (4th) month following the month in which vacation pay was received; however, coverage will be no less than 12 months from the end of the month following the month in which he last worked or first became furloughed.

N.    Eliminate any and all reference to required employee contributions as referred to in the "Foreign -to - Occupation Health Benefits"  in Articles II and III of the current national Agreements.

O.    Provide that emergency room coverage will commence with the first dollar of expense incurred.

P.    Provide coverage under the plan for voluntary sterilization and/or reversal as well as prescription benefit for contraceptive medications.

Q.    Preventive Health Care - increase routine child immunization to include boosters required for students (generally age 18 and under).

ARTICLE II.  MENTAL HEALTH/SUBSTANCE ABUSE BENEFIT

A.    Eliminate all special restrictions and penalties for physiatric care and provide full coverage without any cost to the employee, except the existing co-payment provisions - $10 per visit.

B.    Enhance benefit to include counseling such as but not limited to marriage to be provided either in or out of network with a co-payment of $10 per office visit, if in network.

ARTICLE III.   MANAGED CARE

A.    Reduce all co-payments to $10 per visit including emergency room.

B.    Establish managed care networks not later than July 1, 1995 with the current vendors if such vendors have not established a network in an affected area or region.  At other locations where current vendors do NOT meet the standards previously developed by the Joint Plan Committee (JPC), such networks shall be established not later than January 1, 1996.

C.    Modify Article III, Part A, Section 4 (Managed Care), of the 1991 National Agreement to provide that employees who fail to execute an option in writing between a newly established managed care network in their area, or the current comprehensive health care benefit, shall retain the CHCB Plan without any further action required on their part.

D.    Reduce all out-of-network penalties to 10%.

E.    Increase maximum lifetime benefit on out-of-network procedures to $1,500,000 ($5,000 annually restoration).

ARTICLE IV.  COMPREHENSIVE HEALTH CARE BENEFIT (CHCB)

A.    Include intensive care as covered basic hospital expense.

B.    Provide 90/10% co-payments under the CHCB Plan.

C.    Provide for annual "well physical" for employee and dependents to be covered at 100% of charge, not to exceed $150; thereafter 75% of charge will be absorbed by the Plan.

D.    Provide hospital inpatient miscellaneous expense to be fully covered up to $10,000 and provide the 10% of the hospital impatient miscellaneous expenses over $10,000, which are not payable under this provision, to be covered by major medical.

E.    Eliminate the major medical cash deductible.

F.    Amend maternity coverage to provide full hospital benefits and reasonable and customary physician charges to covered employees and spouses at the 95th percentile under the HIAA.

G.    Include physician charges, if any, for preparation of information and filing of necessary claim forms.

H.    Increase maximum lifetime benefit to $1,500,000 ($5,000 annual restoration).

ARTICLE V.  UTILIZATION REVIEW/CASE MANAGEMENT

A.    Provide that any dispute between case management contractor and the employee and/or personal physician shall be resolved in favor of the employee.

B.    Reduce penalty wherein prior approval is not obtained in advance to 10% or 25% in the case of mental health or substance abuse.

ARTICLE VI.  DENTAL/GP-12000-A

A.    Provide that a new employee will become a qualified employee entitled to full benefits for the employee and dependents on the first calendar day of the first calendar month after the day on which such employee first performs compensated service.

        1.    Extend continuing coverage to furloughed employees temporarily working for another railroad.

B.    Eliminate all cash deductibles applicable to coverage.

C.    Increase Type B coverage to 100%

D.    Increase yearly maximum to $3,000.

E.    Increase orthodontia to 90% with a maximum of $2,000.

F.    Provide orthodontia coverage to all employees and covered dependents regardless of age, if required by a dentist.

G.    Cover students to age 25 who are attending an accredited institution of higher education.

H.    Amend qualifications to coincide with all contract Policy GA-2300 extended coverage benefits.

I.    There shall be no exclusion or reduction of benefits for dental work performed by legally licensed dentists or physicians at or in ambulatory or mobile-type facilities.

J.    An employee suspended or dismissed from service and thereafter found or held to have been improperly suspended or dismissed, in whole or part, will be provided full coverage under the Plan just as if he or she had not been suspended or dismissed in the first place.

K.    Eliminate the alternate benefit provision.

L.    Provide coverage for the application of sealants at 90% for eligible employees and dependents (18 years of age and under).

M.    Provide coverage for implants performed by legally licensed dentists or physicians.

ARTICLE VII.  VISION CARE

  A.    Provide an eye care plan that will cover R&C charges at the 95th percentile under the HIAA for the costs of examination, treatment, prescriptions, and eyewear also including contact lenses and specialty lenses, such as but not limited to sport wear lenses, prescribed by a licensed physician for employees and their covered dependents.

B.    This plan will provide for the costs of examination and replacement of such lenses, eye wear, contact lenses, and specialty lenses once every two years (unless required more frequently by a licensed physician) for all eligible employees and their eligible dependents.

ARTICLE VIII.  EARLY RETIREMENT MAJOR MEDICAL BENEFIT PLAN (GA-46000)

A.    Amend all sections to reflect the same provisions as set forth in GA-23000.

B.    Reduce qualifying age to 60 years.

C.    Provide full coverage for dental as provided active employees.

D.    Provide extended benefits for 2 years to eligible spouse under the age of 65 when employee reaches Medicare.

E.    Provide automatic enrollment into GA-46000 from GA-23000 for all employees who retire while covered by GA-23000.

ARTICLE IX.    GENERAL

A.    The carriers will continue to be solely responsible for the necessary premiums to continue such plans in full effect under the Administrative Services only arrangement.

B.    The Joint Plan Committee (JPC) will continue in the same manner as has previously been agreed to by the joint policy holders, and will exercise rights regarding selection of insurance company or companies to administer such plans, and determine the plan benefits needed to meet the changing needs of the employees.

C.    Any funds accumulated from premiums not needed to provide current benefits or to cover any plan expenses, and any interest thereon, shall be used only for additional or improved employee benefits.

    The provisions set forth establishing the Joint Plan Committee will be extended to encompass the Dental Plan benefits provided the employees, and will be handled in the same manner regarding selection of insurance company and/or companies to administer such Dental Plan benefits, and to determine the plan benefits needed to meet the changing needs of the employees.