Plan Redesign - Wholesale Retail - 1983
In order to manage costs, in 1983, prescribed drugs were limited to those that require a prescription and orthodontia was limited to children. Long-term disability coverage was enhanced.
A major plan overhaul was performed in 1991. The goal was to broaden coverage and rely on coinsurance and annual maximums to stabilize costs. Vision care and major dental were introduced. Dental frequency limits and coinsurance for non-preventative dental services and most medical services was introduced.
In 1994, private hospital coverage was removed and semiprivate was limited to $2,500 annually per individual. Drugs were limited to $2,000 annually per individual with formulary drugs reimbursed at 100% and non-formulary drugs reimbursed at 50%.
In 1998, the short-term disability program was replaced with a Supplemental Employment Insurance benefit plan.
Bold plan design changes has limited cost increases to less than half of the general CPI rate.