MEMORANDUM
First I’d like to thank everyone for their hard work. Even though Southwest Business Forms is a small company operating in a capital intensive business, we were able to achieve success in a relatively short period of time. We are proud of the people that have helped build this company. This company started from nothing, but people like you made it what it is today. As a result, we were able to offer all full-time employees and their family healthcare benefits at no cost. This is something that is difficult to achieve, even for a larger company.
As you may or may not know, healthcare costs have been rising over the past several years. Whether this is directly related to passage of the Affordable Care Act is uncertain. What is certain is healthcare costs have increased an average of 20% per year over the past five years. Unfortunately, we have no control over this. The increase in costs has severely impacted our ability to remain profitable. We’ve had several meetings with top management on trying increase profits and cut costs. If we stay on the current course, we could suffer layoffs or even risk the possibility of closing the plant. As a result, we have decided to take a proactive approach and meet this challenge head on. I’ve just come out of a meeting, and top management has decided to revise the company healthcare plan.
Beginning July 1, 2016, Southwest Business Forms is switching healthcare providers in an attempt to reduce costs. This will affect everyone in the company. Blue Cross and Blue Shield will replace our current provider Aetna. This may require some of us to find new primary care physicians. Each healthcare provider works out deals with doctors and other medical providers on the services they will provide and the cost. Our new provider may not include your doctor in its network. It will be up to you to choose a new doctor it yours is not included. Another change involves co-pays for prescription drugs. Under the current plan, you are required to pay a $15 co-pay. Under the new plan, it will be $20. The biggest change involves family coverage. All full-time employees will still be covered. However, family members will not. You will have the option of opt-in coverage for them at $300 per month. A representative from Blue Cross and Blue Shield will be here on June 20, 2016 to discuss the plan features and answer any questions.
I realize this is not good news. The additional opt-in coverage could pose a significant financial burden on some of us. Some may think the company is putting profits ahead of people. But a company must remain profitable in order to care for its people. The company feels it owes each and every one of you the truth. We always strive to share all news with you, good or bad. While this is bad right now, we believe the good will outweigh it in the long-term. Southwest Business Forms will always consider long term sustainability over short term trends and issues. The competitive landscape is changing and we are trying to solve a significant problem we have no control over. We believe this company and the people who built it will be able to overcome this obstacle. If you have any questions, feel free to contact me.
