Three months ago, when one of Shane Swedlund's children was hit with a "relentless fever and headache," he recalled, "the doctor had mentioned meningitis, and that was enough to scare me."
When the symptoms continued, the doctor said to take the girl to the emergency room. Although Raven's insurer covered much of the cost, Swedlund saw the bill: $1,200. "That's a big cost that makes premiums go up," he said.
The new focus on behavior has sparked some tensions. Tom Stoebner, a fit 51-year-old who diligently gets his annual physical, becomes irritated when he sees co-workers who smoke, overeat and do not exercise. "Those are the people who drive up the costs," he said.
What the workers at Raven do not know is that Moquist has more changes planned. If the company provided the same coverage next year that it offers now, premiums would have risen 26 percent -- just about what Becky Lyon had heard. Moquist held the premium increase to 8 percent, but drug copays will rise and deductibles will double to $1,000 for a single person and $2,000 per family.
"Not everybody uses the health plan to the same degree, so it doesn't make sense to charge everyone 26 percent more," said Teresa DeBoer, employee benefits manager.
That idea worries Stoebner, who said higher out-of-pocket costs affect recruiting and retention. "I'd like them to consider something between $500 and $1,000," he said.
Flush with cash, Raven will put $250 into every worker's flexible spending account next year in an effort to ease the pinch and take one more step down Moquist's behavior modification path. At the same time, Moquist is leaning on the government and health care providers to do their part, pushing for better data collection, electronic records and regular nurse visits to Raven's plants.
The next step is more dramatic: In 2006, Moquist hopes to switch to health savings accounts, in which workers manage a medical fund with a combination of employer and employee contributions. Employees would also have high-deductible "catastrophic" coverage and could roll over money in the savings account from year to year.
Cognizant of criticism that health savings accounts represent a "sink-or-swim" approach, Moquist intends to combine the accounts with free or discounted checkups, screenings and workplace wellness programs. He sees a bright future in which workers keep one eye on their health and one eye on the wallet.
But at Raven, employees are just finding out about next year. Word of the 2006 plan has not reached Becky Lyon yet.
