70 DOMINION RESOURCES EMPLOYEES GET $800 CHECKS TODAY UNDER 'SHARE THE SAVINGS' HEALTH-INCENTIVE PROGRAM
FIRST FULL YEAR OF THE PROGRAM ENDS WITH SURPLUS RICHMOND, Va., May 13 /PRNewswire/ -- Dominion Resources, Inc.
(NYSE: D), today presented $800 checks to 70 employees under a new program designed to hold down healthcare costs by sharing company medical plan savings with employees.
An additional 30 people employed by the 175-person, medically self-insured utility holding company received checks in lesser amounts. They entered the company's "Share The Savings" program at varying times during the program's first full year of operation and received adjusted amounts. Today's checks come from savings achieved in 1992, the first year of the program. The program provides for payments if the company spends less for health-care expenses than budgeted. When budgeted funds remain, the company retains half to defray the following year's medical costs. The balance is paid to employees who did not exceed their annual deductibles and therefore created no expense for the plan. The company's medical plan is self-insured, which means that all medical claims are paid with employee and company contributions. The size of the budget and the number of participants vary from year to year. But about 90 percent of the company's employees participate in the self-insured plan. About $135,000 remained in the 1992 budget. About $68,000 was distributed to the 100 employees participating in "Share The Savings" who do not incur medical expenses. Employee deductibles vary in individual cases. Employees who participate in the company's self- insured plan are allowed to elect one of three specific programs with widely varying deductibles depending upon the number of people covered and the structure of each of the three choices. "Share The Savings" was conceived, implemented and administered by Dominion Resources. It is one of many implemented by the holding company to control health-care costs. Another Dominion program encourages employees to maintain healthy lifestyles by providing up to $50 per month in extra monthly income. Another allows employees who choose health plans with bigger deductibles -- and subsequently smaller monthly premiums -- to set up health-care savings accounts with their premium savings for use in covering routine health expenses. J. Kennerly Davis, Jr., vice president, said: "Our overall goal with this and other programs is to turn the individual employee into a wise and efficient consumer of medical goods and services. We want healthy employees who have incentives to stay healthy and incentives to use their insurance funds wisely. All too often businesses and their employees view health-care insurance as a use-it-or-lose-it commodity. This attitude is contributing to our current problems with the cost of American health care." -0- 5/13/93 /CONTACT: Mark G. Lazenby of Dominion Resources, 804-775-5704/ (D) CO: Dominion Resources, Inc. ST: Virginia IN: SU:
TW -- DC001 -- 7965 05/13/93 09:33 EDT
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|Date:||May 13, 1993|
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