Historical Newspapers of South Carolina

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Employees Urged to Check Hospital Bills for Errors “A reward may be in store for you if you detect a billing error in your hospital bill,” says insurance coordinator Truman Owens. Under the company's group insurance program, it will share with you 50% of any savings resulting from detection of hospital billing errors. A maximum incentive reward of $1,000 is included in the plan. “The reward applies to services not re ceived," says Owens. “We've had an employee share in the reimbursement reward recently," stated Owens. Ralph Lawson, a Plant No. 2 weav ing employee, was scheduled to have x-rays at a Columbia hospital, but upon arrival, he learned the hospital’s equipment was not working properly. The hospital arranged for the tests to be made at another hospital. “By error, a total of $112.20 in charges were submitted. Ralph advised the company of the error and after reviewing the claim, Clinton Mills, Inc. reimbursed him for $56.10 or 50% of the total amount it saved," stated Owens. Owens told the Clothmaker many hospital billing errors go undetected because the bills are paid by a third party—the insurance carrier. Unlike routine bills where indi viduals carefully check auto repair costs, household repairs, billings and other charges, many just don’t take the time to be certain they received everything they were billed for. Clinton Mills encourages each employee to pay close attention to bills and develop the habit of verifying charges when in doubt. “Our plan is administered through Aetna Insurance Company. Aetna strives to attain better than 99% accuracy, but errors some times occur,” Owens added. “Finding and correcting mistakes will help ease unneces sary pressures on our insurance plan and those employees finding eligible billing errors will share in the savings. “Particularly during a hospital stay, a pa Ralph Lawson, receives Clinton Mills check for $56.10 from insurance counselor Truman Owens. tient may receive many kinds of care at diffe rent times. Assembling all that information completely and accurately can be difficult. That's why Clinton Mills wants you to check your hospital bill carefully and report any suspected error as soon as possible," says Owens. “Either Lucille White in Geneva or I will be happy to assist any employee who has any questions relative to the group insurance program." REACT Amends Retirement Plans A recently enacted federal law, called the Retirement Equity Act of 1984 (REACT) brought about a number of important changes in retirement benefit plans in the United States, including those sponsored by Clinton Mills, according to Henry T. Cronic, benefit plans administrator. REACT, which became law August 22, 1984, amends the Employee Retirement In come Security Act of 1974 (ERISA) and the Internal Revenue Code. It reportedly is designed to provide greater pension equity for employed females and for all workers and their spouses and depen dents by taking into account changes in work patterns and in the status of marriage as an economic partnership. Generally, the provisions of REACT be came effective January 1, 1985, and re quired amendments to all company retire ment plans. Among other things, REACT requires re tirement plans to provide a joint and survivor annuity as the standard form of benefit for married participants, and further requires plans to provide a benefit to the surviving spouse of a deceased vested participant. Also, the spouse of a participant must give written consent to a designation of someone other than the spouse in a joint and survivor annuity. This rule does not apply to profit- sharing participants who elect a lump sum distribution. The spousal consent not only must be in writing but must be witnessed by the plan administrator or a notary public. In addition, an employee can leave his or her job for up to a five-year period and still re ceive credit for participation and vesting purposes when re-employed. Since January 1, a break in service is defined as a period consisting of five or more plan years in which the employee is credited with less than 435 service hours. One immediate effect was the voiding of any existing beneficiary designation by a married participant which did not specify the participant's spouse as the primary be neficiary. Profit-sharing participants with a designation other than a spouse were con tacted starting in December and given an opportunity to make a proper designation or to certify that they were in a single status— i.e. never married, divorced, widow or widower. In summary, some of the most significant provisions of REACT are as follows: A participant who at retirement is married and who wants to elect a benefit form other than a joint and survivor annuity with the spouse as the joint annuitant now must obtain spousal written consent. A mar ried participant is legally married until the date shown on the divorce decree, or who becomes a widow or widower. Marital separ ations regardless of purpose, intent or length in no way affect the participant's marital status. The rules regarding pre-retirement death benefits for a surviving spouse have been revised. Under ERISA, an active parti cipant eligible to retire early (age 55 with 10 years of service at Clinton Mills) must be offered the opportunity to provide a spouse with a survivor annuity. REACT provides that a spouse automatically will be provided with this death benefit protection unless the par ticipant elects otherwise in which case spousal consent is required. An additional rule change requires eligi bility for automatic surviving spouse’s be nefit coverage to become effective as soon as the participant becomes vested, regard less of age. This coverage will continue to retirement date (even if employment termin ates in the meantime). Further, certain par ticipants who terminated with a vested de ferred benefit must be provided an oppor tunity to elect this pre-retirement protec tion. REACT permits the Committee in its sole discretion (and without written consent) to make distribution of a present value single sum total entitlement of less than $3,500 (participant or beneficiary). The rules for reinstating service upon re-employment have been liberalized. For Effective January 1, 1985, Clinton Mills, Inc. revised its service awards program to include additional personal and fashionable items for the individual and home. According to service awards coordinator Truman Owens, the American-made cast bronze western buckle has proved to be one of the most popular items in the revised program. “This item was selected by 19 eligible employees in service award categories be tween 15 and 50years," noted Owens. “The current popularity of western wear along with wider belt styles makes the new belt buckle a very useful item. The Clinton Mills, Inc. logo with Clinton Mills, Inc. name cast underneath affords employees an opportun- non-vested, terminated participants, ERISA requires reinstatement only if prior service is greater than the break in service. However, under the new rules, automatic reinstate ment of prior service is required for a break of less than five years. ERISA provides that plan benefits may not be assigned or alienated. However, REACT permits a participant’s retirement plan benefit to be used to pay court-ordered alimony and family support under a qual ified domestic relations order. If you have questions or want to make a change or make a proper designation, con tact someone in your personnel department. ity to identify their company with pride. In fact, the new award is fast becoming a con versation piece among our employees," added Owens. Other service awards and the number selected from the revised list include the Linden jewelry box, 7; 12 l /2” Oneida silver tray, 6; Linden Quartz clock, 6; 16 ounce pewter tankards, 4; and Cross pen and pen cil sets, 2. Employees also chose one each of the pewter rose vases; 4 Jefferson cups; silver chest; Baldwin brass door knocker; Baldwin brass candle stick, and 6V2 Paul Revere bowl. Each item in the revised selection will bear the Clinton Mills logo and name, according to Owens. Employees Select Awards From improved Program