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A generous plan is given a trim

Article Abstract:

IBM is reducing health care benefits to employees to control the skyrocketing costs of medical and dental coverage. IBM has long been known for its unusually generous benefits plan, and the move would bring it closer to industry norms. The health plan changes go into effect Jul 1, 1992. Employees and retirees will then be responsible for the full cost of the first day of a hospital stay, rather than the previous 40 percent. A new $40 deductible for dental benefits will be instituted, which the beneficiary could avoid by joining one of six dental health maintenance organizations (HMOs). IBM is also cracking down on payment duplication, which can arise when employees are covered both under their own and their spouse's health plan. IBM reported a loss of $2.83 billion in 1991. The company has decreased its US work force by 56,000 since 1985, and plans more cuts.

Column, Health insurance, Employee benefits, Cost control, Cost, Cost Reduction, Losses, Work Force Reduction

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I.B.M. forms a unit to market employee benefits

Article Abstract:

IBM is forming a new company called Workforce Solutions that will help other companies manage their human resources departments. The new company will help employers develop programs to recruit and train new employees and will help companies survey the needs of their workers, in areas, such as childcare and retirement benefits programs. The company will also operate IBM's own human resources departments and help organize the usual dental, medical and retirement benefits of IBM employees. IBM spent over $1 billion in 1991 for 186,000 employees in the US and for 50,000 retired workers. IBM's health costs have increased by only 11 percent annually since the mid-1980s, as a result of cutbacks and cost-saving changes in its benefits programs.

Management, Health care industry, Health planning, Strategic Planning, Personnel Management, New Company, Health Care, Benefit Management, Workforce Solutions

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McKesson Agrees to Settle An Accounting Fraud Suit

Article Abstract:

A $960 million settlement has been reached in a class-action lawsuit against drug distributor McKesson Corp. The lawsuit was based on accounting fraud at the software company HBOC Co., which McKesson acquired in 1999.

United States, Legal issues & crime, Acquisitions & mergers, Financial management, Pharmaceutical preparations, Police Protection, Legal/Government Regulation, Capital funds & cash flow, Fraud, Computer software industry, Software industry, Class actions (Civil procedure), Compromise and settlement, Company legal issue, Cases, Class action lawsuits, Settlements (Law), Pharmaceutical industry, Mergers, acquisitions and divestments, Finance, Company acquisition/merger, Accounting and auditing, Investor relations, Company financing, McKesson Corp., MCK, HBOC Co.

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