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A voluntary/mandatory cost containment program.

C G Pierce

    Health Cost Management
    |February 9, 1988
    PubMed
    Summary
    This summary is machine-generated.

    Westmoreland Coal Company implemented a dual health care cost containment strategy. This approach yielded positive results by tailoring participation requirements for unionized and salaried employees.

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    Area of Science:

    • Occupational Health
    • Human Resources Management
    • Healthcare Administration

    Background:

    • Westmoreland Coal Company is a pioneer in implementing health care cost containment measures.
    • The company initially introduced these measures to unionized employees.
    • This initiative aimed to manage rising healthcare expenditures.

    Purpose of the Study:

    • To describe the implementation strategy of a dual health care cost containment program.
    • To analyze the approach used to gain acceptance from both unionized and salaried employees.
    • To report the outcomes of the implemented cost containment measures.

    Main Methods:

    • The study describes the communication and negotiation strategies employed.
    • It details the voluntary participation for unionized employees.

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  • It outlines the mandatory participation for salaried employees.

    • Main Results:

    • Successful adoption of the health care cost containment program across both employee groups.
    • Positive and encouraging results were achieved following program implementation.
    • The dual approach effectively managed healthcare costs.

    Conclusions:

    • The dual approach to health care cost containment can be successfully implemented.
    • Tailoring participation requirements (voluntary vs. mandatory) can facilitate program acceptance.
    • Effective communication and strategic rollout are key to achieving positive results in employee benefit programs.