Teaming up for successful solutions

Workforce, July, 2002

Here's how Direct Reimbursement (DR) works: With a DR plan in place, an employee visits the dentist of his or her choice, receives treatment and arranges for payment, and later presents a paid receipt or proof of treatment to the employer or plan administrator for reimbursement.

Unlike most traditional insurance plans, DR reimburses employees based on dollars spent on dental care, not on the type of treatment received. Plan design varies according to a company's budget so that costs can remain under a company's control. Moreover, there are no predetermination or pre-authorization requirements, no UCR and typically no deductibles. By leaving all treatment decisions to dentists and patients, DR frees employers from employee complaints about limitations, exclusions, and hidden costs.

White Castle implemented a DR dental plan on January 1, 1999. Now, all full-time team members who have worked for the company for the minimum required time are eligible to participate in the plan. Approximately 5,200 team members are eligible, and of those team members who are eligible, about two-thirds (3,500) have opted to enroll in the DR plan.

Under White Castle's current plan design, eligible team members and their covered dependents are reimbursed for dental treatment according to the following schedule: 100 percent of the first $200, and 50 percent of the next $1,600, resulting in an annual maximum reimbursement of $1,000 per covered person.

"We started conservatively," Gunderson said, "feeling it would be better to start small and grow rather than have to reduce the benefit if costs got too high. We took small steps." So far, the plan has been consistently "well within budget."

"The obvious advantage of having the DR plan is better overall dental health for our team members," Gunderson said. "By providing this benefit, we expect that they will be able to go to the dentist more regularly, resulting in a healthier workforce for the future."

"It's been a win-win for everybody at the company," Gunderson added. "With the DR dental plan in place, we like to think that our guests will see better smiles in our restaurants."

Contract Manufacturing Relies on Contract Workers

PEMSTAR AND EXPRESS PERSONNEL SERVICES HAVE FORGED A PARTNERSHIP THAT HELPS THE ELECTRONICS MANUFACTURER GET THE JOB DONE.

Success in contract manufacturing depends upon always having the right skills to get the job done. In this niche, many employees are hired on a project basis to ensure that the manufacturer has the right skills and the right level of staffing to fulfill each contract flawlessly.

Pemstar, an electronics contract manufacturer based in Rochester, Minnesota, relies upon its local Express Personnel office to supply trained workers for specific projects, "both adding and reducing staff on an ongoing basis," explains Karl Shurson, Pemstar executive VP, Quality-Site Operations. Projects may last a few weeks or more than a year, and some employees have joined Pemstar's core staff.

Consistently supplying good candidates with the right skills is a matter of planning. Pemstar and Express Personnel "focus on early identification of candidates at various skill levels," Shurson says. "Because we have this focus and an on-going relationship, we can react very quickly. Normally, we can have the prospective employee on board the next day." Furthermore, adds Norm Doty, co-owner of the Rochester Express Personnel office, "Our staffing partnership creates an environment for which people choose to work," producing a list of people waiting to get on board.