Changes include implementing a cost sharing approach and subsidy limits on retiree and retiree survivor health care costs. DuPont currently spends approximately $600 million on annual employee benefits, two-thirds of which is for retiree benefit plans, according to the report on ManagedHealthCare.Info.
Specific programs of the benefit plan redesign, scheduled to roll out in 2003, will include:
- Consumer Choice Option – consumer driven coverage option designed to give employees flexibility and control over their health care coverage.
- Separation of employee and retiree cost sharing pools – separate pools will be setup to determine the annual charge for health care premiums.
- Employee cost sharing – the new cost share will be about 70% company paid and 30% employee paid.
- Retiree and survivor coverage – subsidy limits will be established for retirees and their survivors. DuPont said this limits will not be implemented any sooner than 2007 to allow time for retirees and their survivors time to plan for these changes.
Medical decision support – employees, retirees and their survivors will be able to consult directly with doctors for advice in making decision on medical conditions.