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ClothMaker Medical costs continue to soar Total Health Benefit Costs — 1986 thru 1991 Millions $7 $6 $4 $3 $2 $1 $0 6,542 3,345 1986 1987 1988 ’91 Projection based on 21% trend factor Health Care Benefit Cost Per Employee 1986 1987 1988 '91 Projection based on 21% trend factor 1989 1990 1991 By Toby Chaffin Vice President Human Resources During 1990, Clinton Mills' total expenditure for health care ben efits was almost $5.5 million; this is 236% more than our total cost in 1986. It also rep resents a 21% in crease over 1989's medical and dental claims costs. The projection for 1991 is that our medical costs will continue to soar, and we anticipate our expendi ture to increase an additional 21% to 27%. A 21% increase would place total health care benefit costs at more than $6.5 million in 1991. These increasing costs are a result of inflation, increases in the cost of medical technology, more sophisti cated medical equipment, more utili zation by our employees of doctors, hospitals and other forms of medical treatment, and cost shifting for those who are not covered by medical insurance. In order to continue to provide quality medical care to all our associ ates and their dependents, and also to hold the cost of this ever increasing medical bill to current levels, we must make changes in our Medical Benefit Plan, as well as your level of contribution. These plan changes will become effective on March 4, 1991, and your new contribution schedule is effective week ending March 17,1991. A sum mary of the plan changes and new contribution schedule is as follows: Medical Plan Changes 1. Our plan will change from a Basic and Major Medical Plan to a Com prehensive Major Medical Plan. 2. The hospital deductible will in crease from a maximum of $131.00 for the first day confined to the semi private rate for the first day confined. 3. The calendar year deductible of $200 increases to $300 per calendar year, per individual or family max imum of $900 per calendar year. 4. The deductibles will not be waived for accidents, x-ray examina tion or laboratory examination ex penses. THE DEDUCTIBLES WILL NOT BE WAIVED FOR ANY REASON. 6. Benefits payable for covered ex pense will be 80%, after satisfying the deductibles except for: A. Generic Drugs 90% B. Skeletal Adjustment 50%/$300 maximum per calendar year C. TMJ disorder 50%/$300 maximum per lifetime D. Foot Disorders.... 50%/$l,000 maximum per calendar year E. Drug and Alcohol Treatment Out-patient 50%/$750 maximum per calendar year In-patient 80%/maximum per calendar year, 60 days per lifetome 7. The out-of-pocket will increase from $l,500/$3,000 to $2,000/$4,000. 8. The carry-over provision for the deductibles and out-of-pocket from the last three months of the previous year to the new year have been removed. THERE WILL BE NO CARRY-OVER PROVISIONS. 9. Contribution: Associate Only $8.75 to $10.65 Associate and Family $21.00 to $26.00 The change in weekly contributions will be automatic unless you advise the Personnel Department in person and in writing by March 4,1991, that you do not wish to continue medical insurance for yourself and/or your dependents. Participation in this plan is entirely on a voluntary basis. •The elimination of the carry-over provision for the deductible and the out-of-pocket will not apply to the last three months of 1990. It will begin with the last three months of 1991. •The new deductible of $300 will not apply if you have satisfied your $200 deductible expense prior to March 4, 1991. •The old benefits will apply to any covered associate and/or dependent who is confined to a hospital PRIOR to March 4,1991, and is still confined on March 4, 1991. •The new benefits will apply to any covered associate and/or dependent confined to the hospital ON or AFTER March 4, 1991. •The new contribution level for this coverage will become effective week ending March 17,1991. It will apply to all active associates and those that are on some form of leave of absence or layoff status. •Proview will change to Proview Plus. Proview Plus is precertification prior to admission to the hospital including a concurrent review while in the hospital. There will be no change in the procedure with regard to the associates making the initial call or having the attending physician make the initial call. The associate will be required to call Proview Plus for routine pregnancy confinements and/or confinements due to compli cations of pregnancy. The information regarding Proview Plus is outlined in the brochure you will receive from your benefits manager. Your help in controlling our escalat ing medical costs is essential. You can contribute not only to your own good health, but to the reduction in Clin ton's medical bill by practicing good lifestyle habits. If you have any questions regarding the plan changes or contributions, contact your benefits manager. 1991 safety committees named Members of the plant safety com mittees play an important role in the safety activities within the company. Safety committee members inspect the plants, make safety recommenda tions to supervision and attend man agement safety programs to present their findings. Members of the 1991 safety commit tees are: PLANT NO. 1—1st SHIFT: Card ing, Charles Trammell; Spinning, Bar bara Scott; Slashing, Ricky Culbert son; Weaving, Shirley Winphrie; and Cloth, Allison Davis. PLANT NO. 1—2nd SHIFT: Card ing, Chuck Rice; Spinning, Edna White; Slashing, Matthew Romines; Weaving, Bill DeWitt; and Cloth, Le slie Hughes. PLANT NO. 2: Drawing Operator, Willie Coleman; Spinner, Lillie Dil lard; Spinning Technician, Jerald Samples; Loom Technician, Steve Darbins; Loom Technician, Harley Culpepper; and Cloth Inspector, Sandra Adams. LYDIA —2nd SHIFT: Carding, William Boozer and James Robinson; Spinning, Henry Campbell and De borah Campbell; Weaving, Mabel Boozer, John Rogers and Barry Pace; and Shop, Lemuel Greene. BAILEY—2nd SHIFT: Carding, Norman Patterson; Spinning, James Coleman; Weaving, Olin Kelley; Cloth, Era lusti; and Shop, Jerry Dyal.