The clothmaker. [volume] (Clinton, South Carolina) 1952-1984, March 21, 1991, Image 7
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.