What is a healthcare control plan?

Healthcare plans for large employers such as FCA’s can span multiple states. It is common to designate a carrier as the “control plan.” The control plan has the responsibility for assuring that the negotiated health care coverages are administered in an uniform manner. This Tentative Agreement provides that Blue Cross and Blue Shield of Michigan remains the control plan, but allows the parties, by mutual agreement, to choose another control plan during the term of the agreement. (see page 386, Red Book). Both the  UAW-GM and  UAW-Ford agreements already provide for this flexibility. This is a positive change as naming the control plan in an agreement locks in the parties to that company, and that  control plan company cannot be replaced until the next negotiations, even if a change is warranted that will benefit our members as well as reduce healthcare costs.

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