Regence Reduces Employee Benefits, Pension
Faced with declining enrollment, Regence cuts back on benefits and pensions to its employees
Up until now Regence has offered employees a very generous retirement package, contributing 100 percent of the funds.
Mark Ganz, president and CEO of Regence, also sent a memo the same day, telling employees that Regence’s 401 (k) would become their primary retirement benefit.
Starting Jan. 1, Regence will double the amount of money it matches in the employees’ 401(k) account -- from 100 percent of the first 3 percent of income to 100 percent of the first 6 percent of income contributed by employees.
Regence is also shrinking the insurance options available to its employees next year – from 15 offerings to three health insurance products and one dental product – the Regence HSA Healthplan 2.0, Innova, Activate and Expressions (dental).
These changes will affect Regence employees in Oregon, Washington, Idaho and Utah.
Regence is also among 52 health insurers being investigated by Congressman Henry Waxman. As chairman of the House Energy and Commerce Committee, he’s conducting a probe about the compensation and bonuses paid to health plan executives.
In 2008, Ganz earned $1.8 million from the Regence plans in Oregon and Washington, including bonuses. His compensation as president of the Utah and Idaho plans is considered confidential by those state’s insurance divisions. However, Waxman is attempting to gather that information as well, according to spokespeople from his Washington DC office.
Also, Regence expects to lose more than 100,000 members in January after the Public Employees Benefit Board chose its competitor, Providence Health Plans, for state employees and their dependents.
Regence has filed a lawsuit appealing that decision and, earlier this month, was unsuccessful in convincing Multnomah County Judge Alicia Fuchs to stop the state from signing the Providence contract.
For related stories about Regence click here.
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