V
Amco News
February, 1979
Vol. 35, No. 1
Adams-Millis Announces Increases In Medical Benefits
Effective January 1, 1979, medical care and major medical expense
benefits were increased for Adams-Millis employees, at no additional cost
to employees.
In his announcement letter, J.H. Millis, Chairman of the Board and Chief
I Executive Officer of the Corporation, outlined the increased benefits. The
letter stated that, “In keeping with our desire to provide you and your family
with benefits that will more adequately meet ever-rising medical costs, we
are happy to annoimce that, at no additional cost to you, we are increasing
your medical care and major medical expense benefits under our Employee
Welfare Benefit Plan.’’
The changes are as follows:
1. 'The Hospital Daily Room and Board Benefit Meiximum increased from
$40 per day to $55 per day.
2. The Surgical Benefit Maximum increased from $360 to $400.
3. The Outpatient X-Ray and Lab Benefit Maximum increased from $50 to
$75 per calendar year, with the di^lgnostic restriction being lifted.
4. The Outpatient Psychiatric Benefit Maximum increased from $10 per
visit to $20 per visit.
5. 'The Major Medical Expense Benefit Maximum increased from a
$50,000 per-cause benefit to a $75,000 lifetime benefit, with a calendar
year deductible of $100 per person for all causes.
6. A Stop-Loss Provision has been added so that if covered charges exceed
$20,000 during any calendar year, benefits for covered charges in excess
of the $20,000 wiU be paid at 100% for the remainder of that calendar
year and during the following calendar year, with no additional
deductible being satisfied.
i
Mr. Millis also announced the adoption of a new retired life insurance
schedule, as follows:
1. Employees age 50 and over on January 1, 1979 will continue to be
covered imder the old schedule which provides that upon attainment of
age 60 (or any age if totaUy and permanently disabled), a retiring Group
Insurance Plan participant who has been continuously insured under the
Plan for the ten years immediately preceding his retirement will be
eligible to continue one-half of the amount (up to a maximum of $10,000)
of his basic life insmrance in force on January 1, 1979.
2. Employees imder age 50 on January 1,1979 will be covered under a new
schedule which provides that upon attainment of age 60 (or any age if
totaUy and permanently disabled), a retiring Group Insurance Plan
participant who h^ls been continuously insured under the Plan for the
ten years immediately preceding his retirement wiU be eligible to
continue $2,000 life insurance in force.
Employees hired January 1, 1979 and thereafter wiU be covered by the
new schedule.
The other provisions of the Group Insurance and Employee Welfare
Benefit Plans remain unchanged. A Summary Plan Description Booklet
amendment, which outlines the new coverage in detail, is being prepared
and will be delivered later this year.
In his letter, Mr. Millis also stated, “Adams-MiUis Corporation pays a
significant portion of the cost of your group insurance and medical care
benefits, and we are happy to advise you that we are assuming the total cost
of these increased benefits. It is a matter of great satisfaction to us to be able
to provide for you and your family a comprehensive medical care and life
insurance program at a minimum cost to you.’’
AT SEMINAR — Shown at
left discussing increased
benefits for Adams-Millis
employees are, left to right:
Mike Ryan, Mrs. Adeline G.
Dupriez, Jean Harrison and
H. Ed Caldwell. Insurance
Mangers and Employee
Benefits Office personnel are
pictured below.
LIFE AND HEALTH BENEFIT PAYMENTS
EXCEED ONE MILUON DOLLARS IN 1978
Year-end figures [unaudited] for the Employee
Welfare Benefit and Group Insurance Plans revealed
a total of $1,172,937 in benefits paid for Plan
participants and their dependents during the year
1978. This was an increase of 34% over benefits paid
in 1977.
A total of $845,937 was paid in medical and health
benefits in 1978; this represents an average of $357
paid for each of the 2,367 participants in the Plan.
The 1977 total for medical and health benefits paid
was $715,914, an average of $305 per participant.
Death benefits paid to 40 beneficiaries under the
Group Insurance Plan amounted to $327,000 in 1978,
as compared to a total of $170,395 paid to 35
beneficiaries in 1977.
Annual Seminar Held
MASON
ROBBINS
TURNER
BLAYLOCK
EARNHARDT
WILLARD
YOUNT
KIRBY
COX
GILLESPIE
TEAGUE
OWEN
SECKLER
The Employee Benefits
Department’s annual Group
Insurance Seminar held in
High Point last fall focused
on the increased medical and
health benefits which be
came effective under the
Adams-Millis Corporation
Employee Welfare Benefit
Plsm on January 1, 1979.
Attending the day-long
meeting at Holiday Inn,
West were Personnel and
Insurance Managers from
throughout the Corporation.
Also, H. Ed Caldwell and
Mrs. Adeline G. Dupriez,
representatives of 'The Equi
table Life Assurance Socie
ty’s Richmond claims office
which administers the Em
ployee Welfare Benefit Plan,
attended the meeting and
discussed administrative
procedures for implementing
the increased benefits.
The meeting, conducted
by Jean D. Harrison, Em
ployee Benefits Manager,
was opened by Michael L.
Ryan, Vice President of In
dustrial Relations, who an
nounced the new benefits. In
his opening remarks, he said
that “fringe’’ is no longer an
adequate term for the bene
fits employees take advan-
see page 3