September 7, 2022

To: All employees
From: Gregg Clawson

We are in the process of changing our health care provider. For far too long we have been accepting annual increases from our current provider as “business as usual”. Our goal as owners is to provide the best benefits we can afford to our employees. However, we simply can no longer accept our existing, exorbitant, health care plan. These continuing increases affect our daily operations, cash flow, bank credit and our ability to fund large projects or new ventures. This financial anchor is limiting our ability to expand and grow the next generation of this company.

Beginning October 1, 2022, we are switching our provider from Anthem to United Healthcare, a national healthcare provider. We should see only minor changes in our coverage, however there may be incidents where your current physician may not be part of the in-network coverage.

We will be increasing “employee contribution” on only the medical health care portion. In turn, we will eliminate the employee contribution for dental and vision, and continue to cover 100% of the costs for long and short-term disability and life insurance. The national average for employee healthcare contribution is 25% of the premium amount. We currently collect 15% premium for employee contribution. The new employee contribution will be 20% of the premium which is still considerably less than the national average. We wish it were a 0% contribution.

Our deductibles will increase as well. However, the company will offset the deductible increase above our existing deductible rates. So, in essence, you will see no change in your deductible. A process for the company covering the increase in deductibles is being formulated and will be announced at the time of the switchover to the new insurance.

We will meet with you individually to explain the changes and answer all your questions as best we can. Our goal is and will continue to be the best coverage for our employees that we can afford.

Any big change has growing pains. Please be patient as we work through the headaches of a major change.

Sincerely,
Gregg Clawson