NationsBank institutes new system for its employees' health insurance

July 11, 1992

NationsBank said yesterday that it would try to control health-care costs with a new system of managed care that includes negotiating directly with doctors and hospitals for discounted rates in some areas.

The plan will allow many of its 55,000 employees nationwide, including 3,400 in Baltimore, to choose either a health maintenance organization or a preferred-provider organization.

Employees who choose the HMO would receive medical care for a flat monthly rate. Workers who join the PPO and go to doctors and hospitals on the NationsBank plan's list would receive 80 percent reimbursement. Employees might choose other health care providers, but they would be reimbursed at a lesser rate.

NationsBank does not expect to reduce its health care costs, but merely keep them from growing as rapidly, said Mary Waller, a company spokeswoman.

Without adoption of the new plan, the NationsBank health care ** bill in 1993 would have been nearly $140 million, with the company paying approximately two-thirds of the costs, the company said. Under its current system, the company said it had expected health care costs to rise to $200 million by 1996. But with the new plan "we think that will be cut to $168 million by 1996," Ms. Waller said.

NationsBank said it selected Aetna Health Plans for its self-insured medical plans and The Prudential for its HMO. Jefferson-Pilot Co. will administer the dental plan.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.