Fran Parker ’88 Leaves Retirement to Direct UAW Retiree Medical Benefits Trust

Fran Parker ’88 doesn’t walk away from a challenge—even one as big as creating and then leading a trust that manages the medical benefits of hundreds of thousands of United Auto Workers retirees.

Parker, after “retiring” in 2008 as president and CEO of the Health Alliance Plan (HAP), soon jumped back into the workforce. She was named executive director of the UAW Retiree Medical Benefits Trust, which manages the benefits of approximately 750,000 retirees of the “Big Three” automakers of Ford, General Motors and Chrysler.

“(The UAW) came to me to do this because of my background,” said Parker, who has more than 40 years of health care experience. “Taking the membership of three different organizations, Ford, GM and Chrysler, with no infrastructure, you had to create (the trust) from nothing. You knew that come January 1 of 2010, these retirees depended on you.”

When the trust launched in 2010, it became the largest non-governmental purchaser of retiree health care in the U.S. The trust is governed by an 11 person Committee of Directors. All of the retiree health care liabilities were transferred to a new independent Voluntary Employee Beneficiary Association (VEBA). Parker said she is enjoying her latest challenge, and considers it one of her greatest career achievements.

“I kind of divide the day into thirds,” Parker said of her typical day on the job, which usually begins about 7 a.m. and ends around 6 p.m. “A third might be day-to-day running of an organization. Another third (is) trying to keep abreast of regulatory changes. And (then) some time on strategy. I try to interact with staff and others, and I spend time with our insurance carriers and medical providers.”

As a leader, Parker considers herself to be “fact-based” and “data-driven.” However, she said she also values the opinions of others in the decision making process.

“I think it’s important to be the best, no matter what your job is,” she said. “I try to continuously learn. … I like to gather opinions from others on all levels. I’m not really top down.”

Parker began her career in the health care industry working as a co-op for Blue Cross/Blue Shield—while still a senior at Detroit Dominican High School. She started at HAP in 1979 as one of 14 original employees, and steadily worked her way up the corporate ladder. In 2004, she was named HAP’s president and CEO.

“For me, that itself was an accomplishment,” Parker said of her progression to a top leadership role at HAP. “I don’t think there’s shortcuts. I think that hard work, honesty, forthrightness, determination, relationship-building, those were all part. For me, I never walked away from a challenge. So many of the areas that I supervised or as asked to supervise were areas that, for lack of a better term, they had fundamental issues. … A lot of people would shy away because it was a mess. But I would take it on.”

Although her vast experience in the health care industry serves her well, she also considers her bachelor’s degree from Siena Heights University to be a critical piece to her professional success.

“For me, the flexibility that the Southfield campus offered at Siena allowed me to take the opportunity and complete my degree while working full-time,” Parker said. “I don’t believe I would have been able to achieve many of my career aspirations without my degree. I found that the environment, the caliber of the instruction at the Southfield center were just excellent.”

Although she admits she has “failed” at retirement, Parker still makes time to get involved in her community. She just completed an eight-year term on Eastern Michigan University’s Board of Regents, serving the last two years as its chair. Parker also serves on several other boards, including the Greater Detroit Area Health Council and the Alliance for Health Reform Council. Parker also supports women’s advancement groups, including the Michigan Women’s Foundation.

She said those considering a career in health care need to have a “mission based” attitude.

“It really fundamentally impacts people’s lives,” Parker said of the health care industry. “Whether you are on the clinical side, actually delivering the care or in administration, you’re really doing it to improve the quality and outcomes of care that people receive.”

And about retirement?

“It didn’t work the last time,” Parker said. “I want to continue to make a difference in the lives of the retirees of the trust.”