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New ideas on health care pay off.(Annual Report)
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MMR
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May 5, 2008
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Copyright informationCOPYRIGHT 2008 Racher Press, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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[ILLUSTRATION OMITTED]
PLEASANTON. Calif. -- Health care costs have long been a major concern of Steven Burd, Safeway's chairman, president and chief executive officer.
In 2005 the company's health care bill for its 200.000 employees reached $1 billion, exceeding its net income by 19%.
That year the company piloted a health care program designed to reverse its escalating costs, beginning with health care coverage for its 30,000 nonunion employees. Under the plan, participants are encouraged to move from a preferred provider organization (PPO) to a health reimbursement account, to which the company contributes $1,000 per employee.
The insurance deductible is ...
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