Academic journal article ABA Banking Journal

"Pass the Aspirin". (Community Banking)

Academic journal article ABA Banking Journal

"Pass the Aspirin". (Community Banking)

Article excerpt

If you have a management conundrum you'd like input on, send it to Steve Cocheo, executive editor: e-mail: scocheo@sbpub.com; fax to 212-633-1165; or mail to ABA Banking Journal, 345 Hudson St., New York, N.Y. 10014

THE HEADACHE

Ron Kukes, president and CEO, $64.3 million-assets Alaska First Bank & Trust, N.A., Anchorages:

"What steps has your bank taken in the last few years that helped contain employee medical plan costs?"

We present four answers to this question in this column, with additional responses in the August column.

REMEDY 1

James R. Namby, president and CEO, First National Bank & Trust Co., $273.9 millionassets, Ada, Okla.:

We pay the employee a monthly incentive of half of our cost in providing health insurance if the employee agrees to get off our plan.

The employee must give us proof of insurance--for example, their spouse has a family plan--to qualify. We save $320 for each employee who leaves the plan. They get $160 and we save $160, which helps subsidize the cost for the others remaining in the plan.

Also, last year we raised the deductible to $300 from $100, in lieu of paying higher premiums.

REMEDY 2

Ron Heaton, president and CEO, State Bank of Southern Utah, $296.3 million-assets, Cedar City, Utah:

Our bank sponsors an employee physical fitness program. Each year, during our Employee's Day, we roll out a program that employees are encouraged to participate in. In 2001-2002, it was running the Olympic Torch from Moab to Salt Lake City.

Each participating employee was given credit for an exercise program to recognize them for running legs of the Torch Run. If they reached Salt Lake, they were given recognition and a reward of a bank coat or some other item of their choice. …

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