Conference 7.286::digital

	I just received my new Digital Benefits brochure. It seems 
	reasonable, but I have just a few concerns.

	o Why don't they have a 3rd option for the rate strucuture. They 
	estimate each family uses $3000. per year in benefits. What is
	the breakdown of this usage? What average family size do they
	base this figure on? On average, what does the worker, spouse,
	and dependents incur of this bill?

	I don't want to go into a long winded problem description, but
	why can't this third rate structure address 2 worker families
	taking into account that a spouse has the same benefits, thus
	reducing out-of-pocket costs to Digital. How about a middle
	ground rate of $11.50 when they are 2 worker families with benefits?

	o The child care benefit. I realize this is a brochure, but do
	we need to submit bills on a monthly basis to be re-imbursed? I
	have a need to send my daughter to summer day camp so both my
	wife and I can work, therefore I won't be submitting monthly
	bills. I would want to save for the year, and in December 
	submit the bill for the 10 week summer camp and be re-imbursed.


	I know, I should be asking the benfits people, but it seems they
	never put their name on it. Why can't we have an account like
	BENEFITS @PKO to send questions to, give them time to research
	them, and get an answer. They might even prepare stock replies for
	common questions. Nah, too easy...

    RE: .1
    You have hit two of my pet peeves and they both relate to this topic.
    First - we as employees need a single place to ask benefit questions
    like what was suggested in .1.  I know the standard answer is to ask
    my PSA but generally my questions are so far over their heads that
    all I end up doing is sending them off to others who go off to others
    who ...  I do not want to wait while this process grinds on when
    it would be as easy to go to the central location and get the answer
    directly.  BTW My questions are usually difficult because my wife
    has worked in Personnel departments for ten years + and can answer
    the easy questions :-).
    Second - As DINKs (double income, no kids), family benefits packages
    make very little sense to us.  We would be paying for lots of coverage
    that we do not need, child care, etc.  While I believe in supporting
    schools even though we have no kids, I do not think that I should
    be paying for extra insurance costs when I want to cover only my
    wife and myself.  So I too would like to see a third option that
    took into account the fact that we both work and might/could be
    covered by two plans.
    Lee G.
    P.S. Now if the above doesn't start a lively discussion, I truly
    do not know how to start fires ;^)

    
    
    
    	My question is why is the deductable for say my wife and
    	myself the same as if we had several kids using these 
    	benifits? It seems to me a family of two should pay less
    	than a family of four or five or whatever...
    
    
    	Cary...
    
    
    

RE: .2

>     As DINKs (double income, no kids), family benefits packages
>     make very little sense to us.>  We would be paying for lots of coverage
>     that we do not need, child care, etc.>  While I believe in supporting
>     schools even though we have no kids, I do not think that I should
>     be paying for extra insurance costs when I want to cover only my
>     wife and myself.>  So I too would like to see a third option that
>     took into account the fact that we both work and might/could be
>     covered by two plans.

If you are both employed, there is NO NEED to select family coverage; each of
you is covered as an individual. At Digital, this coverage had been provided
free of charge to employees but may now be subject to a small premium depending
on the coverage option selected.

If you SELECT to each have family coverage, this could result in additional 
benefits. For example, the 20% copayment left over from the primary insurer 
may be picked up by the secondary insurer. For heavy users of medical services,
the copayments can really add up. If a person wants this ADDITIONAL coverage, 
he should *reasonably* expect to pay for it. Single-income families *wish* they
had this option...

RE: .3
    
>    	My question is why is the deductable for say my wife and
>    	myself the same as if we had several kids using these 
>    	benifits? It seems to me a family of two should pay less
>    	than a family of four or five or whatever...
    
The larger families *do* pay more in the form of higher copayments and, to a
lesser extent, deductibles. This imposes no small burden on the larger family,
particularly if it relies upon a single income. Digital has - and continues to 
strive to - make health coverage affordable for all. Changing the rate struc-
ture to be based on the number of covered dependents would be contrary to this 
objective.

The whole purpose of insurance is to reduce risk and to distribute the costs of
coverage over the covered population. To benefit from this risk reduction, one 
often has to subsidize the costs attributable to others. This is only fair, 
since this is *exactly* what you expect others to do for you, should the need 
arise...


    

    re:4 Bad Assumption!!
    
    My wife works, BUT does not have a reasonable group insurance coverage.
    In fact her single coverage is more expensive than getting indiviual
    coverage direct from an insurrer, which is more than the family
    option in DEC.
    
    We also are now "DINKs". I guess its another case of burden the
    middle income. The insurance companies have learned well from the
    politians.   
    
    

    RE: .5 


>    re:4 Bad Assumption!!

>> If you are both employed, there is NO NEED to select family coverage; each of
>> you is covered as an individual. 

>    My wife works, BUT does not have a reasonable group insurance coverage.
>    In fact her single coverage is more expensive than getting indiviual
>    coverage direct from an insurrer, which is more than the family
>    option in DEC.
    
	Yes, you're right. I made a simplistic assumption that a spouse would 
	have reasonable coverage at his/her own place of employment. Obviously,
	this is always the case.

	However, I think your reply only proves my point that family coverage is
	a valuable option to couples regardless of whether they have children 
	as re-iterated below:

>> If you SELECT to each have family coverage, this could result in additional 
>> benefits. For example, the 20% copayment left over from the primary insurer 
>> may be picked up by the secondary insurer. For heavy users of medical 
>> services, the copayments can really add up. If a person wants this ADDITIONAL
>> coverage, he should *reasonably* expect to pay for it. Single-income 
>> families *wish* they had this option...

	In your case, the benefit exceeds simply covering the 20% copayment
	and thus provides a basis for an even stronger argument that family
	coverage is a very valuable option for couples...
	

    RE:.4
    
>The whole purpose of insurance is to reduce risk and to distribute the costs of    
>coverage over the covered population. To benefit from this risk reduction, one 
>often has to subsidize the costs attributable to others. This is only fair, 
>since this is *exactly* what you expect others to do for you, should the need 
>arise...
    
    I disagree with this definition.  Insurance is gambling.  You are
    betting that you will use more of the services than you are paying for
    and the insurance company is betting that you won't.  To give the
    insurance company the house odds, they employ many people who figure
    out the percentages of use verses non-use of the services. When the
    insurance companies do not figure the odds correctly or the conditions
    change (like the current problem with malpractice insurance), the
    companies will raise their rates to compensate for their past problems.
    As a group, we will pay $X and will recieve $X - $Y amount of services
    where $Y = the cost of doing business for the insurance company. 
    
    My problem with the current plan is that the group (family coverage)
    that I am gambling with includes many people who use more of the
    services which increase the amount I must pay.  And who are these
    people??  Why children from ages 0 to 6.  Therefore, all I am asking is
    that there be a better breakup for the groups.  I do not want to be
    included in a high cost group, the same way that I do not want my life
    insurance premiums to be the same as a two-pack-a-day smoker.  I
    understand that it is tougher on the person with kids if this type of
    grouping is done.  BUT I do not want to pay for something that I will
    not use. (I did prefix my previous comment with the fact that this
    was one of my pet peeves :-)
    
    BTW - The reason that Digital and many other large companies are
    self-insured is because they see how much money insurance companies
    are making and can cut the costs by taking the process in-house. 
    Since Digital is paying the majority of the costs, this is one of
    the best methods to keep the costs down while providing the services
    and benefits to the employees.
    Lee G. 

re: .4

>The larger families *do* pay more in the form of higher copayments and, to a
>lesser extent, deductibles. This imposes no small burden on the larger family,
>particularly if it relies upon a single income. Digital has - and continues to 
>strive to - make health coverage affordable for all. Changing the rate struc-
>ture to be based on the number of covered dependents would be contrary to this 
>objective.
>
>The whole purpose of insurance is to reduce risk and to distribute the costs of
>coverage over the covered population. To benefit from this risk reduction, one 
>often has to subsidize the costs attributable to others. This is only fair, 
>since this is *exactly* what you expect others to do for you, should the need 
>arise...

This is revolting.  By logical extension, DEC should modify its already weak
"pay-for-performance" stance and consider the number of dependents as input
into salary reviews.

Personally, I'd like to see Digital offer menu-style benefits (including
the option to take the cash and buy your own insurance if you wish).  Contrary
to the current politically correct thought, affordable health insurance is
not a right.  It is a benefit of a rich, productive society.  

Subsidies only hide the true cost of medical care and therefore tend NOT to
help expose the real issue of reasonable medical expenses.

Paul    

    I've read the brochure over 3 or 4 times, but I don't see any
    discussion of the dental benefit.  I am currently paying a weekly
    fee for dependent dental coverage.  Will this remain the same,
    increase, etc.?  Only medical benefits/plans are discussed.

> This is revolting.  By logical extension, DEC should modify its already weak
> "pay-for-performance" stance and consider the number of dependents as input
> into salary reviews.

	You missed the point entirely. The number of depedents is neither 
	currently considered nor being recommended (by me); just whether 
	"family" coverage is desired as an option or not. If you don't want 
	"family" coverage, you *don't* have to select it. Since it's
	*still* a good deal, I expect most people will still opt for the
	coverage...

> Personally, I'd like to see Digital offer menu-style benefits (including
> the option to take the cash and buy your own insurance if you wish).  

	Excellent idea. There are a *lot* of benefits that each employee
	is assessed as benefiting from but which they may rarely - if 
	ever - utilize. A good example is tuition reimbursement. Some 
	people really make out like bandits on this one, effectively 
	getting Digital to pay for entire degree programs.  Others have 
	already acquired their educations and paid for it themselves...
	If the Company did not have to shell out so much to so few for
	tuition, maybe benefits which more people could use would be 
	affordable to Digital to offer...

> Contrary to the current politically correct thought, affordable health 
> insurance is not a right.  It is a benefit of a rich, productive society.  

	Providing affordable health care is a stated policy and objective 
	of Digital and of all quality companies in the United States. Outside
	of the U.S. (Canada and the UK, for example), the government takes
	this responsibility.

> Subsidies only hide the true cost of medical care and therefore tend NOT to
> help expose the real issue of reasonable medical expenses.

	We're grappling with this issue all the time. The latest changes
	to the Digital Medical Plans are attempting to address this and related
	issues in a manner that best serves the long-term interests of the 
	Company and its domestic employees.

	With a 20% copayment required even on hospital visits (Option 1), 
	the true cost of medical care is hardly hidden - it wallops you 
	where it hurts: in the wallet. You don't have to be a rocket
	scientist to multiply one's out of pocket cost by 4 to determine
	the portion Digital pays (which, by the way, directly impacts the
	Company's bottom line).

	Responsible utilization of medical services should be *everyone's* 
	concern...
	

        RE: .several -- Sigh..  This started off as a "Q&A" topic around
        the new benefits package, but it has quickly digressed into a
        debate about such issues as whether insurance is really gambling,
        whether subsidization of medical costs is socially desirable, and
        a variety of other matters that are unlikely to *ever* see
        unanimity of opinion (and they are definitely matters of opinion).
        Perhaps you could start another (appropriately named) topic (or
        better yet, another conference, called SOAPBOX) for this
        discussion. 
        
        RE: .10 -- You're right, the materials we've received so far don't
        describe any changes to the dental plan.  Of course, it's possible
        that the cost will change, but you probably won't know for sure
        until you receive your personalized options profile, which is
        supposed to be mailed to you through interoffice mail sometime in
        (if I remember correctly) February (in any case, before the
        enrollment period begins). 
        
        RE: The "Dependent Care Reimbursement Account" & being reimbursed
        monthly (e.g., summer camp bill): the way I read the description,
        you don't have to submit a bill monthly, just that payments will
        only be made on a monthly schedule.  If you've only got one bill,
        you submit it, and when the next monthly payment date comes
        around, you get reimbursed.  The details will be spelled out
        later, I imagine.  And it's all limited by what the IRS (our
        friends, the taxman) say is permitted.
        
        Tom

    RE: .12
    Dr. Tom is right, we did digress.  So to get this back on the subject,
    did the flyer stated that packages will be sent out in Feb.?  Will
    there be meetings scheduled to explain these changes?  I read somewhere
    else in this conference that there was a DVN broadcast set up for Friday,
    Feb.3 but the ACT here in Detroit is not sponsoring this broadcast.
    So the last question is how do people in the field get more information
    besides waiting for the new packages?  Have the PSA's been briefed?
    Lee G.

     Apparently there was a new change in the tax that states
     "All Paid benifits must be equal"
    
    Reggie
    

    re:-1
    
    Could you explain?

   re: .12
    Yeah, you're right Tom, I apologize for the diversion...
    
    It's just that the mention of the word "fair" in conjuction with
    subsidies is one of my hot-buttons.
    
    Paul

        RE: .16 -- No need to "shut up", but if you want to discuss
        further how subsidization of health care interacts with the
        way we work at Digital, start another topic focussed on it
        (so people can find it or ignore it as they please).
        
        RE: DVN, schedule, etc. -- Back in December, I received via
        interoffice mail a booklet labelled "The Digital Medical Plans
        and Dependent Care Reimbursement Account Program", with the
        sub-label "A background report for Personnel and Management".
        It is dated "December 1988".
        
        Your manager and your PSA should have received this booklet.
        
        In the introduction, it says "There will be additional training
        for all Personnel staff so that they can assist in conducting
        employee meetings to help employees to fully understand the
        changes and make appropriate decisions during the Open Enrollment
        in March."
        
        In the back of the booklet, there is a "Time Table" section.
        I don't see anything in there about a DVN broadcast this Friday.
        (There is a DVN broadcast scheduled; I believe the subject
        will be K.O. and other senior managers talking about Digital's
        financial results and perhaps the recent desktop announcement.)
        
        It does say that Personnel staff will receive training between
        January 15 and February 3, so by the end of this week, your
        local PSA should have been trained.
        
        During the next few weeks, you should receive (through interoffice
        mail) an "enrollment kit" with complete details on the plans,
        enrollment forms and instructions, a personalized medical
        comparison showing the available HMOs, and a comparison of the tax
        savings of the Dependent Care Account versus the Federal Tax
        Credit. 
        
        During the period from Feb. 20 through March 17, there should be
        group meetings (small groups) to review the information (I believe
        there will be a video tape), answer questions, and provide
        one-on-one assistance. 
        
        This is all what's planned (and there's more, but I won't bother
        to type in all the details -- this is the major stuff).
        
        Talk to your manager.  Ask when the group meetings will take place
        for your group.  Ask to see the "background report".  Make sure
        your manager and your local personnel support person "do the right
        thing".  If necessary, use the "open door policy" for visibility
        if there are problems. 
        
        Tom
        

re .17 -- Ken and other managers will talk not only about financial results and
the Desktop announcement, but also about employee medical benefits and drug
testing:

                 DIGITAL VIDEO NETWORK FEATURES KEN OLSEN 
                      ON "DIGITAL QUARTERLY REPORT"

                        Friday, February 3, 1989
                            4:00 - 5:00 pm

Ken Olsen and managers focus on timely issues of importance to the
widespread U.S. Digital community...the Q2 financial results in
perspective, and the early feedback to the Company's DECtop Program
and new Desktop announcements.  Also, a look at how soaring health care
costs are impacting employee medical benefits, and at the mounting 
pressure on employers to conduct drug tests.

THE VIDEOTAPE OF THIS BROADCAST IS AVAILABLE VIA THE DIGITAL LIBRARY NETWORK

    
    
    I went to my PSA this morning so that I could modify my JH coverage.
    I wanted to drop the "family" plan and simply keep myself and my
    wife as being covered. As of the end of February it will be only
    my wife and I at home so I have no need to worry about kids adding
    to my medical expenses. So what happened? I left it the way it was
    because it makes absolutely no difference how many people are on
    the policy as long as they are your wives or husbands or dependent
    children under 23 years old that are full time students or totally
    dependent on you for support for what ever reason. 
    
    Cost = you alone        $8.38 wk or
           plus wife        $8.38 wk or
           plus 1 child     $8.38 wk or
           plus 12 children $8.38 wk 
    
    It makes no difference how many are covered, the cost to you is the
    same. And they still provide no coverage what-so-ever for eye care
    or glasses.    

              <<< Note 711.19 by CSSE::CACCIA "the REAL steve" >>>
                             -< more is the same >-

    
    
>>    And they still provide no coverage what-so-ever for eye care
>>    or glasses.    

One of the HMO plans available to Colorado Springs DEC employees does
offer one eye exam per year at the price of the co-payment.  And, some
of the opticians/optical dispensers give DEC employees substantial
discounts, which are not at all dependent on health care plan.  Not
certain if anyone in your area offers this, but you might "suggest"
it.

    I'm not too concerned about an eye-plan.  The 3 or 4 I have seen
    offer minimal assistance for a person like me.  I recently bought
    a pair of prescription sunglasses.  Total cost was ~$250.  The plans
    I have seen would have only reduced this bill by $20.  And before
    you ask, I didn't get any fancy designer frames, etc.  These were
    standard G-??? tint, with a scratch resistant coating.
    
    I'd rather see the money spent on improving some other benefit that
    would help more people.
    
    Bob

    there is a plan whereby employees over the age of 40 who are required
    to use terminals in their job can obtain FREE prescription glasses
    (including bi-focals).  your PSA has the forms, your manager signs
    them, and YOU pay only for the examination.  There are some
    stipulations as to frame types.
    
    tony

    Re: .22
    
    Yes, there is such a plan, and everybody has agreed to get me the
    glasses with DEC paying. I haven't done it yet, though. 
    
    It turns out that I got a workstation (for other reasons) that will
    display characters 50% (or even more) larger and that was good enough
    to solve the headache problem. 

RE:    < Note 711.20 by COOKIE::WILCOX "Database Systems/West" >
   
    
>>> One of the HMO plans available to Colorado Springs DEC employees does
>>> offer one eye exam per year at the price of the co-payment. 
    
    If you're talking about HMO-Colorado, I just found out that they've
    reduced this benefit to one exam every TWO years.
    
    Steve
    

    Does anyone know whether Digital retirees continue to participate
    in the group plan, and what, if any percentage of paid-out benefits
    accrue to this group?
    

>    Cost = you alone        $8.38 wk or  | ????????
>           plus wife        $8.38 wk or  |
>           plus 1 child     $8.38 wk or  |
>           plus 12 children $8.38 wk     |
    
>    It makes no difference how many are covered, the cost to you is the
>    same. 
    
    Except for the first line, there is no argument (except that it
    ignores the new benefit of paying this with before-tax dollars,
    reducing your net cost). The cost for individual coverage is 
    borne ENTIRELY by Digital in Plan 1 and there is a much lower
    before-tax charge for Plan 2.
    
    I can't understand why so many people are picking on families re
    the rate structure. If I recall the explanatory material that came
    along with the announcement, the reason for the rising costs of
    our health care WASN'T that too many Digital employees were having
    12 kids. Rather, it had something to do with increased utilization
    on a per-capita basis and the "aging" of the workforce. Let's face
    it, when one gets older, more things can go wrong...
    
    The guy in the cubicle next door to me suggested the reason DEC
    had a binary rule (Family: Yes/No) was to simplify administration
    of the plan. Processing forms for dependent add/changes/deletes
    could get a bit cumbersome - not to mention costly. According to
    Bill, about 25% of our medical costs are in administrative overhead.
    Digital is trying to *reduce* that cost, not increase it by making
    program administration more complex and increasing overall costs
    to all regardless of how distributed...
    
    If it *were* desirable to change the way coverage is purchased,
    there are other options other than simply headcount of family size.
    Perhaps groups which represent a higher risk might be asked to bear
    more of the cost, in line with their *probable* use of benefits.
    While I'm not advocating *anything*, such higher-risk groups may
    include, but not be limited to, the following:
    
    o smokers
    o heavy drinkers
    o users of illegal drugs
    o over-eaters
    o older people
    o participants in high-risk sports and/or activities
    o "swingers" and gays (no one has factored in the impending cost of AIDS)
    
    If charging *any* of these people more than others were suggested,
    I'm sure there'd be an *uproar*. However, these are the very groups
    likely to drive up our costs, not people having 12 kids.  
    
    Those that complain about the current rate structure may find
    *themselves* targeted for increased premiums should that lead to
    a decision to set premiums on a risk-adjusted basis... Some things
    may be better left alone...
    

        RE: .26 -- Get out your copy of "Your Benefits Book", 1988
        edition (which was mailed to you during 1988), and take a look
        at page 7.26.
        
        It says that you may continue your coverage in the medical and
        dental plans when you retire, that if you have coverage for your
        dependents you can continue to cover them as well, that Digital
        pays for your coverage, and that you will be billed for the cost
        of dependent coverage. 
        
        It's possible that this will change somewhat with the change from
        the current "John Hancock Medical Plan" to the new Digital plans;
        for instance, there may be a change in the forms you have to fill
        out or in way you pay for dependent coverage. And there is the
        disclaimer that "Unless otherwise required by law, Digital
        reserves the right to reduce or eliminate these other benefits at
        any time." 
        
        Tom

    Another thought of why a "family: yes/no" system might have been
    adopted:
    
    Suppose you are in a couple expecting their first child.  As this
    event is not planned in the same manner that a wedding is planned
    (e.g., the event will occur on a set date) the sixth month of pregnancy
    arrives without the employee remembering to change his/her insurance
    coverage.  But, complications ensue and the baby is born early,
    *so* premature that *HUGE* medical bills result -- without a dime
    of insurance coverage for the new child.
    
    Someone might say "It serves them right!  They should have been
    careful to change coverage!"  But this means that someone could
    be crippled financially because "they should have known better".
    
    Secondly, I am bothered by the popular myth that "large families
    are to blame for large premiums".  I have known many large families
    (5 or more children) which have spent *less* in *many* areas (including
    medical bills) than many smaller families.  The reason?  Large families
    know that survival depends upon not wasting limited resources. 
    They are far less inclined to call the doctor for every sniffle
    that comes along.
    
    Also, if medical costs for large families are so extreme, why do
    insurance companies seem to care very little about the number of
    children you have?  I've never heard of anyone being rejected for
    coverage "because you have too many children -- you're a high risk!"
    I *HAVE* heard of *COUPLES* who were refused medical coverage
    "because you're too old!"
    
    Just my opinion.
    
    -- Russ

    Extension to .29
    
    Come to think of it, most insurance policies don't cover "pre-existing
    conditions".  So, unless you manage to get "child" coverage before
    conception, the insurance company would probably say "hey, we cover
    the mother, but not the child!"
    
    So, anyone who *MIGHT* give birth should get "child" coverage anyway,
    to avoid disaster.  But, how many people would attempt to save pennies
    and end up with thousands of dollars of medical bills as a result?
    I'd rather put up with a few extra pennies than see a coworker suffer
    because he/she made a mistake in medical coverage (and who would
    explain it anyway?  Personnel?  Give me a break!!!).
    
    -- Russ

    RE: last several
    I think we are headed down the same rathole again.
    
    BTW - A catagory that is being used by some plans is "Single with one
    dependent".  At least that is the answer I got when I asked my wife
    what is going on outside of DEC (my wife works for a benefits
    consulting firm).
    
    Lee G.

    re: .24
    
    i don't view the age requirement of over 40 as a form of
    discrimination.  the reason is that there is a very common "disease"
    of people in that age group that prevents their eyes from focusing...
    that is why we so often have to wear bi-focals.  
    
    the near-vision (lower) portion of most bi-focals is set to a focus
    point of about 14 to 16 inches from the eye...a common distance
    to hold text.  however, video terminals are usually at 24 inches.
     in fact, the requirements of the program for dec to pay for the
    glasses is that the prescription be set for video terminals, and
    NOT for normal vision.  
    
    in my case, i just bought (non-dec) regular bi-focals, which give
    me wonderful vision at near and far... but not so good (painful)
    at 24 inches.  i can either get tri-focals (maybe someday i will
    have to...) or i can let dec furnish me with glasses that allow
    me to see near (14 to 16 inches for reading) and at the 24 inch,
    terminal distance...and not out to far.
    
    so, if you are too young to require such visual assistance, then
    why call it discrimation for those who do?  seems like a normal
    healt type benefit to me.  
    
    tony

    re: .32
    
    It is age discrimination.  I have a friend who has worn bi-focals
    since age 22.  If he worked for Digital, he would meet all the other
    stated criteria for glasses.  Why should he have to wait until he
    turns 40 to get the benefit?
    
    Bob

    i think the best thing to do is ask personnel if the "over 40" clause
    mentioned in the program's literature is in fact a literal criteria.
    i can only say what i read... you can interpret it.
    
    sorry to sound "flame on" like... but, i have had it up to here
    with "discrimination" issues... and people who want to argue their
    case for the sake of argueing...and others who just want to jump
    on the band-wagon.
    
    me?  i'm pretty satisfied with what i've got...if you get more,
    then that's YOUR good fortune.
    
    tony
    (flame off... sorry)

    Re: .29 - Huh?
    
    Seems to me that babies, particularly baby #1, are considered
    a medical problem for the mother.  That is, dependent coverage
    is not an immediate necessity for the mother/family if the mother
    is insured.  At least this was John Hancock's rule 7 years ago
    when our first child arrived.  Then, both parents were DEC
    employees with individual JH coverage.

    From my benefits specialist wife, most insurance (I would have said
    all but there are exceptions for everything) allows you to add coverage
    for a NEW dependent within 31 days of acquiring that dependent.
    So the issue of coverage is not a problem, just add the dependent
    after the birth or adoption.  She also mentioned that Blue Cross/
    Blue Shield requires that they are notified of each addition to
    your coverage under their plan (at least here in Michigan).  Isn't
    insurance fun :-)
    
    Lee G.

    
    Tony,
    
    You are probably right about just asking PSA about the over 40 clause.
    I wrote my opinion about being discriminated against due to the
    fact that I also wear glasses, sit in front of a terminal about
    6 hours a day, and just had to spend more money than I planned to
    get a new prescription set of glasses.
    
    Why sould I have to wait until I'm 40 to receive this benefit? 
    If I take corrective action *now*, maybe I won't need to hit DEC
    up for additional eye care *later*.
    
    Keith R>

    Looking at a crt all day shouldn't be thee only thing, try doing
    an eye focus while working on a back plane.  Those of us in the
    field have eye strain just working on much of the equipment we work
    with. I have the forms coming from PSA possible next week.  I plan
    on going over it carefully.  I don't mind raising a little hell
    to get something that helps me do my job.  If PSA put limitations
    on some benifits then maybe the limits will have to expand.

I am amazed that everyone seems to be ignoring one very important fact here.
From almost everyone's perspective, this is a PAY CUT!!!  This new plan is 
going to cost me MONEY out of my pocket.  They can make these brochures glossy,
but they don't hide this important point. 

Brad.

	That the health plan was going to cost more seemed so obvious to
	me that I never thought to mention it. It was clear months ago when
	we got a mailing at home that DEC wasn't going to be able to continue
	paying all the frieght. It is also pretty clear that by doing things
	the way they are and reducing our taxable (rather then gross) income
	for the medical plan that the company is trying to minimize the
	impact of the whole thing.

				Alfred

    I regard it not as a pay cut but as a cost-of-living increase.
    The net result is the same, but the "blame" isn't the same. 

    It might not be a pay cut.  Remember, pre-tax dollars are a lot
    smaller than after TAX dollars.  Sometimes over 45% (33 + 5 + 7.51)
    smaller. So take another look at the actual costs to you not the
    pure dollor figures.
    
    Lee G.

Well before the plan I paid roughly $468 in per week deductions for my 
family medical plus $300 in deductibles which I meet every year (3 kids).

To receive the same medical coverage after April 1, it will cost me roughly
$832 in per week deductions plus $375 in deductibles.  The tax loophole will
supposedly save me about $4 dollars a week reducing it somewhat by $208.

It's still $768 (old) vs $1007 (new) for equal coverage.  A pay cut, no matter
how you slice it.  So now I am forced to take a lessor benefit, or plan 1.  If
any of my family ever goes to the hospital, I'll be out an additional $700
dollars for the calender year.  This may look good to the shareholders, but
it stinks for the employees.  As a stockholder and an employee, this company
hasn't shown me a sincere commitment to controlling medical costs.  

I brought an error on a bill to the attention of personnel ($500), and JH,
and was informed by JH that they don't audit bills under 20K because it's too 
expensive.  I said, "great, you don't have to audit, just call up the hospital
and tell them to give you your money back."  No such luck, too easy.  I couldn't
even get a yawn from personnel.  You all can rest easy though,  I badgered the 
hospital until they finally refunded the money.  Of course, what's $500 as
long as it isn't part of your raise, right?  As a stockholder, I wonder what
percent of all our medical bills fall through the cracks?  Never mind the ones
that are pointed out and ignored.

Brad.

    RE: -.1 Well I guess you could always buy your own insurance
    at $200-$250 a week (yes a week). Yeah, sure DECs plan is going to cost
    more then it did but do you think you could match it on your own? Of course
    not. Other companies are also cutting back on insurance benefits.
    Some of then it appears are cutting back more then DEC.

    Some thinks will always get messed up in billings. Perhaps JH
    doesn't always do the cheapest thing but no system is perfect.
    Based on what I see (I work with budgets and compensation for
    an organization [a school] outside of DEC) DEC is trying to keep
    costs down. And doing a good job under the circumstances.

    			Alfred

    For a number of years, my husband and I both carried family medical
    plans, he having BC/BS and me with Digital's plan.  When HIS weekly
    deduction rose to $22.00, we dropped his.  Last year he would have
    had to spend $30.00 per week, and THIS year, it has risen to a 
    whopping $42.00 per week!!!  THIS put my concerns over increased
    insurance premiums into perspective!  
    
    The company my husband works for has a 50-50 payment responsibility
    for premiums.  Digital contributes more than 50% for our premiums.
    
    Carla
    
    
    

re glasses over/under 40:

	I have a pair of DECspecs. I am under age 40.

	When I found I was having difficulty reading my terminal, I went
	to the site Health Services Office. I reported the problem and
	requested a pair of "terminal glasses". A person from health
	services came to my office, measured distances from the bridge
	of my nose to my terminal, and to my desk. This information
	was recorded in a form which I then brought to my optometrist.
	The optometrist examined me ($3.00 co-payment with my HMO,
	your mileage may vary), took the distance information, and wrote
	up a prescription. I then took the prescription back to Health
	Services, and selected a set of frames. Health Services then
	sent the order to American Optical who made the glasses and sent
	them to Health Services, who notified me they were ready. And
	somewhere along the line, I seem to remember having my cost center
	manager sign something.

	The glasses focus at a specific distance (hence the measurements).
	They are pretty useless outside of work, but for using the terminal,
	they are a godsend.

							Tom_K

re:           <<< Note 711.46 by CVG::THOMPSON "Notes? What's Notes?" >>>
 
>    RE: -.1 Well I guess you could always buy your own insurance
>    at $200-$250 a week (yes a week). Yeah, sure DECs plan is going to cost
>    more then it did but do you think you could match it on your own? Of course
 
It's part of my compensation for working here Alfred, and starting April 1,
I will be receiving less of it.  Trying to rationalize things by saying
I should try it on my own is bullshit,  we could play this tune to the end
of time.

>   not. Other companies are also cutting back on insurance benefits.
>    Some of then it appears are cutting back more then DEC.

Other companies aren't doing nearly as well as DEC.

Brad.

This wasn't mentioned explicitly in the brochure... does anybody
know for sure?

Maternity/obstetrics used to be covered 100% by the John Hancock plan.
Are they covered at 80% by plan 1 (since it is hospital care)?

A normal birth costs > $1,000, so if it is covered at only 80%, you
better choose plan 2 if you are expecting a child before the next
open enrollment date!  Lets see... that means that there are three
months of the year you should not get pregnant if you are on plan 1!
It also means that birth will cost you $468 in out-of-the-pocket
premiums even on plan 2 (hmmm or 20% of $1000 or $200 on plan 1---
but no-one can guarantee a normal birth).

Of course, I would like to hear that obstetrics are covered at 100%
on both plans.
                        --tom

Well, I'll answer my own question, since I just got the brochure
on the new plans today.

Obstetrics is covered like other hospital costs, 80% with plan 1
or 100% with plan 2.

So, if you are planning on having a baby, plan 2 may be more worth
your while.  Since it will cost at least $1,000 for a normal birth,
the most you can lose if you choose plan 2 over plan 1 is
52*9 = 468  - 200 =  $268.  Which isn't so bad considering the
likelihood of a cesarian or other procedures.

As I said, though, you can only change to plan 2 during the
open enrollment period, so you may want to consider when to get
pregnant!
                       --tom

    
    I received the brochure yesterday.
    But it does not mention about how much the cost of HMO
    beginning April 1.
    
    HMO cost is supposed to go up, right?  But how much?
    without the number, I can't decide plan to go.
    
    Jason

        You will receive a personalized mailing with the HMO costs
        for your specific location.  Since the available HMOs differ
        from place to place, it makes little sense to send out the
        costs for every HMO to every employee.  This was explicitly
        stated in the brochure you received.
        
        Tom

    RE:.54
    I got a listing of the HMO's with costs in my envelope. Now it may
    be that because I belonged to an HMO that I got this.
    
    RE: several back
    Because of outside information, I knew that the cost of my HMO was
    going up.  The difference is $8+ from $2.54 so even with the extra
    benefit of pre-tax dollars, it will still cost me more.  I can not
    blame Digital for this as they are mandated to pay the same amount
    per employee for every plan.  The only thing I would take exception
    to would be if the corporation were to cut the total costs from
    the previous years by putting these costs onto the employees.  I
    do not THINK this is the case but it would be nice to see the figures
    that were used.
    
    Lee G.

                I don't belong to an HMO but the rates for the available
        ones in Eastern Mass are in my package. There was a separate
        sheet that did a comparison between HMO's and listed their
        addresses on the back. The bottom two lines of figures in the
        comparison chart was their rates. I'll bet that you got one
        also, but that you didn't notice either the set of figures, or
        the sheet in all the "junk" that was in the package.
                
                /s/     Bob
                
  p.s. The sheet also has your name on it on the side with the
        addresses, and on the other side, it tells you what you are
        currently signed up for.

       Did the 'package' come to your home, or in Interoffice Mail? I
    haven't gotten mine.
                                                    Denny

    
    Interoffice.  And I was one who missed the rates.  Flip over the 1
    sheet of heavy bond with your address on it (this is the 1st sheet in
    the package, the address in in the window) and HMO's on it and the
    comparisons are on back. 
    

       Anyone else not get them yet?
                                                         Denny

    The information packet is not "clear" on the status of the Dental
    Plan -- will the contributions remain the same?  My assumption is
    that they will, but I probably shouldn't assume such.

    I just asked my Personnel contact about this:
    
From:	<<my Personnel contact>> "DSG Personnel"  8-FEB-1989 10:25:58.42
To:	HANNAH::LASKO,<<others>>
Subj:	Answers....

There are no changes to the Dental plan - the reason
for the dental election section is that people who wish
to add dependents can do so at this time.  All employees
receive dental coverage for themselves at no cost.

If you are in an HMO, you don't need to do anything
if you want to stay in the same HMO.  If you decide to
switch HMO's or switch to John Hancock you'll need to
fill out the forms.

...

    In the medical plan brochure on page 12, there are two categories of
    benefits:
    
    Benefits					Plan 1		Plan 2
    
    HOSPITAL CARE
    Inpatient semi-private room, board
    and other necessary services, 
    including maternity
        With Medical review			80% aft. ded	100% aft ded
    	W/O Medical review			20% penalty	20% penalty
    
    PHYSICIAN'S SERVICES
    Surgical charges, incl. obstetrics		80%...		100%... [typo?]
    	With 2nd opinion			80%...		100%...
    	W/O 2nd opinion				30% penalty	30% penalty
    In-home visits				80%...		80%...
    Office visits				80%...		80%...
    Hospital visits				80%...		80%...
    
    My question is in regard to the "HOSPITAL CARE", which is 100% for Plan
    2, verses the "Hospital Visits" listed under "PHYSICIAN'S SERVICES".
    
    I am not really clear on whats what here.  Does the "Hospital Visit"
    refer to the physician visiting you in the hospital?  Somewhere I got
    the impression that it actually referred to elective surgery, meaning
    that "Hospital Visits" refers to YOUR hospital visit.
    
    Anyone know enough about this jargon or had any personal experiences to
    indicate what portion of a, for example, $6000 pre-emptive (don't know
    the medical term) cyst removal would fall under the 100% umbrella, and
    what part (if any) under the 80% umbrella?
    
    If its just the Doctor bill, I guess I understand that, sort've (ever
    had surgery by anyone BUT a doctor?).  But I'm concerned that there are
    some kinds of hospital visits that aren't covered (not the Doctor's,
    YOURS).
    
    Thanks in advance!
    
    Jim

    My own interpretation:
    
    Hospital Care would seem to indicate services while under the direct
    care of the hospital - ie. overnight stay in private/semi-private
    room.
    
    Hospital Visits would seem to indicate outpatient services - ie.
    no overnight stay required.  A visit to the emergency room might
    be considered a Hospital Visit.
    
-Andy

        Please, please, please ask these detailed questions about the
        interpretation of the language of your personnel services person,
        and of your manager.  Do not make a decision based solely on
        the well-intentioned responses of people who participate in
        this conference.
        
        About the information packages:  they are being distributed
        via interoffice mail, they come in a distinctive envelope that
        was clearly specially printed for the purpose, and they are
        arriving now at many facilities.  Mine arrived this week. 
        I don't know whether they were printed in "badge number" order,
        but I'd strongly suspect that they were sorted by facility
        and perhaps even by mailstop.  If other people are receiving
        theirs (in your area) and you haven't, then there might be
        a problem, but I wouldn't panic until that happens.  If you
        have not received yours, ask around your group to see if other
        people are receiving theirs.  If so, ask your personnel benefits
        person for help (ask your supervisor or manager if you don't
        know who your benefits person is).
        
        Tom

        BTW, if you *have* received your package, the name of your
        personnel contact should be printed on the address sheet, right
        above your own name.  (This sheet is inside the back cover
        of the booklet labelled "Digital Medical Plans", which has
        a cut-out to let your address show through the outer envelope.)
        That's the person to contact first if you have questions.
        
        Tom

    I attended the benefits presentation held in MK1 this week.  One
    of the questions I asked was about single parents of single children
    ie. 2 person families and if they still had to pay the full $450.
    deductible.  The presenter answered 'No, only $150. per person or
    $300.'  I would love to get a 'second opinion' on this just to verify
    the answer.
    
    Another woman explained that both her and her husband work for DEC
    and are covered by the individual plan, however, they are expecting
    their first child in June.  She was concerned that her medical charges
    get included in the family deductible when/after the child is added
    and they change one of their plans to family.  There were several
    PSA's in the room and their answers all differed till they finally
    told her that her case was special and she should talk to her PSA
    before making a decision.  I would be curious to know the answer.
    One PSA told her she should go ahead and sign up for family ins.
    now, which (on plan 2) would cost then half of the deductible anyway
    - before the child is even born.
    
    Another person asked if one family member could satisfy the entire
    deductible and was told no.  A minimum of two family members charges
    had to be used to satisfy the deductible.
    
    I thought these were all good questions.  They also talked about
    the GYN/Pap being covered at 100% up to $50/20 and mammogram (sp?)
    which shows that the focus is shifting to preventative medicine.
    
    Also Surgery is Surgery whether it is done in the hospital or a
    doctor's office.  (And covered at 100% on plan 2 - but the doctor
    visit was only covered at 80% on either plan)
    
    
    I'm not a mathematician but unless you and your family aren't normally
    healthy or if you/yours are expecting lots of surgery, etc in the
    next year, plan 1 is a good deal.  Don't forget there is a $3600.
    cap on out of pocket expenses so if you do get hit with big bills
    the most it will cost (on plan 1) is $450. plus $7/wk plus $3600.
    
    STILL A GREAT BENEFIT!  If you don't like it, shop around!
    

    re:.67
    I think that I said this before in this note but it might help if
    I repeat it again.  Generally insurance plans allow you to add/subtract
    coverage when the status of your dependents change.  Births, deaths,
    adoptions, marriages, divorces, and spouse's losing their job all
    count as a change in status.  I do not have my benefits book handy
    but I believe that Digital follows this standard practice.
    
    On the other question on deductibles, the answer you got is the
    only one that makes sense.  The deductible is figured on a double
    maximum basis.  Each individual has a maximum of $150 and the
    entire family has a maximum of $450.  Since the 2 person family
    has a individual maximum total of $300 that becomes the family maximum
    because there is no way to get to the $450.  If there are five
    individuals in the family, the individual maximum total could be
    $750 but since the family maximum is $450, the family maximum would
    be the limit before all of the individual maximums would be reached.
    Is this any clearer??
    
    Isn't this fun,
    Lee G.

I just received the following memo from Central Area Personnel, sent to all
 ALL-IN-1 accounts.  Thought others would like to see it.

	/Marvin
  
  ***********************************************************************
  
  Time is getting short.  
  
    THE ENROLLMENT DEADLINE FOR DIGITAL'S NEW MEDICAL PLANS OR HMO'S AND 
  THE NEW DIGITAL DEPENDENT CARE ACCOUNT IS MARCH 24, 1989.
  
  We have now visited almost every site in Central Area, and have spoken 
  with many of you regarding our new benefit options.  Some questions 
  came up in those meetings that might be of interest to all of you.  
  These q & a's will provide you with additional information so that you 
  can make the best choices for you.  
  
  
  General Questions
  
  1.  Can I join the Dependent Care Reimbursement Account or the Digital 
      Medical Plans or an HMO at any time during the year?
  
  	Other than during the Open Enrollment period, you can only enroll 
        or make a change within 31 days of a change from inactive to 
        active status, change to an eligible status (number of hours 
        scheduled), or a change in your family status.  New employees can 
        enroll within 31 days of their date of hire.
  
  
  2.  When will future Open Enrollments take place?
  
  	Beginning at the end of 1989, the Open Enrollment period will 
        take place during December, with changes effective the following 
        January.			
  
  
  3.  Can I add or drop eligible dependents during the Open Enrollment
      period?
  
  	Yes.  Beginning April 1, 1989, you may only add or drop 
        dependents during the annual Open Enrollment period, unless you 
        have a change in family status, such as marriage or the birth of 
        a child.
  
  
  4.  Can I submit evidence of insurability for my family in order to
      add dependent coverage during the year?
  
  	No.  The evidence of insurability process no longer exists for 
        medical or dental coverage.
  
  
  5.  What if I am not sure if an event qualifies as a change in family 
      status?
  
  	The Internal Revenue Code defines the following events as 
        allowable changes in family status:  addition of a dependent 
        through marriage, birth, or adoption; loss of a dependent through 
        divorce, death or when a dependent marries, or reaches the age 
        limit for plan coverage; and a spouse's employment or loss of 
        employment.  If you have questions about your particular 
        situation, contact your PA.
  
  
  6.  Is there any change in the Dental Assistance Plan?
  
  	There is no change in the Dental Assistance Plan, but there is a 
        change in the way you enroll your dependents.  The only time you 
        can add or change coverage to your dental plan is during Open 
        Enrollment or if you have a change in family status.
  
  	Previously, if you didn't have dependent coverage and wanted to 
        pick it up, you could apply and then wait six months for coverage 
        to begin.  This six month waiting period has been eliminated.  
        The twelve month waiting period for reapplication for dental 
        coverage has also been eliminated.
  
  
  
  Digital Medical Plans
  
  7.  What are the differences between Digital Medical Plan 1 and Digital 
      Medical Plan 2?
  
  	Both plans cover the same medical procedures and services, and 
        have the same deductible and out-of-pocket limit.  The only 
        differences are in the payroll deductions and the amount that 
        each plan will pay toward the cost of a hospital stay or surgical 
        procedure.
  
  
  8.  What else has changed in the medical plans?
  
  	The major changes involve the amount of your payroll deductions, 
        payment of these costs on a pre-tax basis, an increase in the 
        deductible amounts and the amount of your copayments.		 
  
  	The payroll deductions are now $0 or $7 for Digital Medical Plan 
        1 and $3 or $16 for Digital Medical Plan 2.  The deductible for 
        both plans will now be $150 per person and $450 for three or more 
        dependents.  The amount of your copayment for in-hospital and 
        surgical expenses will be 20% under Digital Medical Plan 1 and 0% 
        for Digital Medical Plan 2.  (The copayment for most outpatient 
        services remains 20% for both plans.)
  
  
  9.  Can I still choose an HMO?
  
  	You can choose an HMO as an alternative to the Digital Medical 
        Plans during the Open Enrollment period.  You should carefully 
        review the personal HMO comparison chart contained in your 
        Enrollment Kit for information about the new payroll deductions.  
        Payroll deductions have increased substantially for HMO's.
  
  
  10. Why is Plan 1 or my current HMO the "default" option?
  
  	Plan 1 is the default option if you currently have John Hancock 
        insurance because it provides the same (or lower) payroll 
        deductions that you are currently paying.  Since Digital is 
        offering two new plans, we cannot assume you want the more 
        expensive one.  Until you make a choice, you will automatically 
        be placed in Plan 1 or the HMO you are currently in. 		 
  
  
  11. Can I change plans after the Open Enrollment period?
  
  	You can change coverage between Open Enrollment periods due to a 
        change in family status or employment status.  You can not change 
        plans between Open Enrollment periods.
  
  	This restriction is set by Internal Revenue Codes -- not by 
        Digital.
  
  
  12. Why don't those with many dependents pay more than those with few?
  
  	We don't base the cost of family coverage on family size because 
        it is not necessarily a good prediction of utilizaiton (e.g., an 
        individual with a chronic or serious illness may incur more 
        medical expenses than a healthy family of four).  Covered 
        employees and dependents who use the Plan more than others pay 
        more, through deductibles and co-payments.
  
  
  13. Will I have to start over on April 1 to meet the $150 deductible in 
      1989?
  
  	If the $125 deductible has already been met, you will only need 
        to satisfy $25 more.  Copayments for October, November, December, 
        January, February and March count toward the current year's 
        deductible.
  
  
  14. Does Medical Review for hospitalization still apply to the Digital 
      Medical Plans?
  
  	Yes.  Medical Review is required prior to any planned hospital 
        stay, or within 48 hours of any emergency admission.  If you do 
        not go through the medical review process, you will be required 
        to pay a 20% penalty on the benefits for room and board services.  
        For Plan 1, this means that you would be reimbursed at the 64% 
        level, rather than at 80%.  For Plan 2, reimbursement would be at 
        the 80% level, rather than at 100%.  (Penalties are not 
        considered covered expenses and will not count toward your 
        out-of-pocket maximum.)
  
  
  15. Do I still need a second surgical opinion to receive full benefits
      from the Digital Medical Plans?
  
  	Yes.  Getting a second surgical opinion protects you and your 
        dependents from unnecessary surgery.
  
  	In order to receive full benefits under whichever Digital Medical 
        Plan you choose for certain surgical procedures, you must obtain 
        a second opinion from an independent surgeon on whether or not 
        the surgery is needed.  (A list of these procedures is available 
        in your rainbow benefits book, or from your PA.)  If you do not 
        obtain a second opinion, you will be required to pay a 30% 
        penalty on the reimbursement for the surgery.  This means that 
        surgical costs will be reimbursed at 56% for Plan 1, and at 70% 
        for Plan 2.  (Penalties are not considered covered expenses and 
        will not count toward your out-of-pocket maximum.)
  
  	Both medical plans provide 100% reimbursement of the reasonable 
        and customary charges for the surgeon's consultation and related 
        laboratory and x-ray charges incurred by you when seeking a 
        qualified second or third opinion.  These charges are not subject 
        to the deductible.
  
  
  16. What are "reasonable and customary" (R & C) charges?
  
  	Reasonable and customary charges are defined as the usual costs 
        for comparable treatments, services or supplies for similar 
        medical conditions in your geographical area.  John Hancock bases 
        its R & C determination on data compiled and organized by zip 
        code area (based on the first three digits), taking into account 
        all charges processed in that zip code for each surgical 
        procedure performed.  This data is updated every six months.  
  
  
  17. How are accidents covered under the Digital Medical Plans?
  
  	There has been no change in the way accidents are covered.  The 
        first $300 of expenses for treatment of injuries caused by an 
        accident are covered at 100%, with no deductible, for both 
        Medical Plans.
  
  
  18. Are all covered expenses subject to the deductible?
  
  	No, there is a waiver of the deductible for the following 
        situations:
  	  - Second and Third Surgical Opinions
  	  - Age-Based Physical Exam expenses
  	  - Scheduled Gyn exam, Pap test, and Mammogram expenses
  	  - The first $300 in accidental injury expenses
  
  
  19. Can I cover my Step-Child as a dependent on my medical insurance?
  
  	Yes, if your step-child lives with you.
  
  
  20. I am divorced, and my child lives with my ex-spouse.  Can I still
      carry my child on my medical insurance?
  
  	Yes.
  
  
  Dependent Care Accounts
  
  21. How much can I contribute to a dependent care reimbursement
      account?
  
  	You decide how much of your pay you want to set aside, up to the 
        maximum allowed by the Internal Revenue Code -- $5,000 annually 
        if you are single or married and filing jointly, $2500 if you are 
        married and filing separately.  Your maximum weekly contribution 
        for the 1989 benefit year will be $151 ($5000 divided by the 33 
        pay periods from May 14 to December 31).  The minimum allowable 
        weekly deduction is $10.
  
  
  22. What qualifies as an eligible expense?
  
  	Eligible expenses are generally any expenses you pay for 
        dependent care that allows you, and if married, your spouse to 
        work or attend school full-time.  In addition, expenses incurred 
        to provide care to a parent who lives with you or to your spouse, 
        if your parent or spouse is mentally or physically incapable of 
        taking care of themselves are covered.
  
  
  23. Who are eligible dependents under this plan?
  
  	Eligible dependents must qualify under the Internal Revenue Code, 
        must live with you, must receive at least half support from you, 
        and must also be under age 13 and qualify as a dependent for 
        exemption on your tax return; or age 13 or over, if physically or 
        mentally unable to care for themselves and qualify as dependents 
        for exemptions on your federal tax return (ignoring any income 
        requirements).  A disabled sopuse or parent also qualifies as a 
        dependent under this plan if living with you and physically or 
        mentally unable to care for himself or herself.
  
  
  24. What do I need to do to get reimbursed from my Dependent Care
      Account?
  
  	Complete a Dependent Care Reimbursement Account claim form and 
        submit it to John Hancock with the provider's name, their 
        taxpayer identification number or social security number, the 
        period of time for the claim and your receipt.
  
  
  25. When will I get my reimbursements?
  
  	Hancock will process all claims submitted by the end of each 
        month on the 10th of the following month.
  	
  
  26. I pay my expenses quarterly.  What happens if my current expenses
      are greater than the amount of money in my account?
  
  	You will only be reimbursed for eligible expenses to the extent 
        that your Dependent Care Reimburesement Account contains 
        sufficent funds.  If your claim is greater than your account 
        balance, the balance of the claim will be placed in pending 
        status and paid during the following months as you make 
        additional contributions.	
  
  
  27. What happens to the money left in my Dependent Care Account if I
      don't use it all by the end of the year?
  
  	If you contribute more money to your account than your dependent 
        care expenses, then the amount not used by the end of the runout 
        period will be forfeited.  (Current Internal Revenue Code 
        regulations do not allow the return of any unused account 
        balances to you.)  So it is very important that you carefully 
        estimate your dependent care expenses when determining the amount 
        you should deposit in your Dependent Care Account.
  
  
  Pre-Tax Payroll Deduction Feature
  
  28. Which of my benefit contributions are eligible for pre-tax
      treatment?
  
  	Medical (both the Digital Medical Plans and HMOs), dental and 
        Dependent Care.
  
  
  29. Do I have a choice in paying my medical and dental contribution by 
      either pre-tax or after-tax deductions?
  
  	No.  The pre-tax feature is automatic.  This is true for the 
        payroll deductions for Digital Medical Plans 1 and 2, the HMO's 
        and the Dental Assistance Plan.
  
  
  30. How do the medical, dental and Dependent Care contributions I make
      affect the Federal and state taxes I pay?
  
  	Your income will be reduced by the amount of your payroll 
        deductions for medical and dental coverage, thus reducing the 
        amount of your taxable income.  Under the Dependent Care 
        Reimburesement Account Program, when you direct a portion of your 
        pay to be deposited into a Dependent Care Reimbursement Account 
        set up in your name, your taxable income for Federal income tax 
        purposes is reduced by that amount.
  
  	In most states, your state income taxes will be based on your pay 
        for Federal income tax purposes.  You should check with your 
        state tax office or with a tax expert for more information.
  
  
  31. What impact will pre-tax payroll deductions have on other Digital 
      benefits?
  
  	None.  The pay used to determine your pension benefits won't be 
        affected, nor will there by any effect on your other Digital 
        benefits such as life insurance, disability income, and the 
        Employee Stock Purchase Plan.
  
  
  32. How will this affect my Social Security benefit?
  
  	Because you will not be paying Social Security taxes on your 
        payroll deductions, your benefits from Social Security may be 
        slightly reduced.  Your benefit will be slightly reduced if your 
        salary, after your premiums are deducted, is less than the Social 
        Security wage base for that year.  (The wage base for 1989 is 
        $48,000.)
  
  33. Why isn't the payroll deduction for life insurance and LTD
      included?
  
  	LTD and life insurance benefits over $50,000 are taxable benefits 
        in the sense that if you don't pay income tax on the salary that 
        funds the benefit, you have to pay taxes on the benefit itself.  
        You either pay taxes on the premium or the benefit.  Our decision 
        was not to include LTD and life because those who use the LTD and 
        life benefits would prefer to pay taxes on the benefits in 
        advance and not when they were in a catastrophic situation.  (You 
        pay the entire cost of life insurance benefits over $50,000 and 
        LTD with after-tax dollars.)
  
  
  
  Enrollment
  
                   ENROLLMENT DEADLINE IS MARCH 24, 1989
  
  34. What do I have to do to enroll in the Digital Medical Plans or the
      Dependent Care Reimbursement Account?
  
  	To enroll in any of the Digital Medical Plans or a new HMO, you 
        must complete all non-shaded areas on the Medical and Dental 
        Authorization form.
  
  	To enroll in the Dependent Care Reimbursement Account, complete 
        all non-shaded areas on the Dependent Care Reimbursement Account 
        Enrollment form.
  
  	The instruction sheet which is attached to the forms explains how 
        to complete them.
  
  	Send your completed enrollment forms to your PA at the address 
        listed at the end of this memo.
  
  	   
  35. If I already have John Hancock coverage, do I have to fill out and
      submit an enrollment form during the Open Enrollment?
  
  	Yes.  You must make a choice between Digital Plan 1, Digital Plan 
        2 or an HMO (unless you have HMO coverage and you are not making 
        any changes to that coverage).
  
  
  36. If I don't submit an enrollment form during Open Enrollment, what
      happens?
  
  	You will automatically be placed into Plan 1, which has no 
        payroll deduction for single coverage and $7 a week for dependent 
        coverage, and which provides 80% reimbursement for any hospital 
        and surgical expenses.  Plan 1 is the default because the weekly 
        deductions are most like current deductions.
  
  	If you belong to an HMO, you will continue in the same HMO, 
        subject to any change in premium.
  
  	You will not be able to change your coverage until the next Open 
        Enrollment period, unless you relocate out of your HMO service 
        area.
  
  
  37.  What if I'm married to another Digital employee.
  
  	One of you may take family coverage, with the other listed as a 
        dependent on your spouse's insurance.  This is a change.  Note 
        that if you will be covered as a dependent under your spouse's 
        Digital coverage, you must complete a Benefits Authorization form 
        indicating that you are covered under your spouse's plan.
  
  
  38. Who needs to complete a Sworn Statement?
  
  	A Sworn Statement is necessary to comply with the reporting 
        requirements of the Internal Revenue Code.  You only have to 
        complete the Sworn Statement if you have eligible dependents, 
        including your spouse, that are covered under a medical or dental 
        plan other than one offered by Digital.  
  
  
  REMEMBER -- ALL ENROLLMENT FORMS MUST REACH YOUR PA BY MARCH 24, 1989!!
  
  	Send your enrollment forms to:
  
  	      Administration		Aubrey Miller
  	      Finance			ACI
  	      Sales			DTN 474-5399
  
  	      Field Service		Karen Bengston
  	      				ACI
  	      				DTN 474-5396
  
  	      Educational Services	Linda Barber
  	      Software			ACI
  	      Personnel			DTN 474-5398			

    Has anyone gotten a straight answer on whether families with legal,
    foreign au pairs are eligible for the Dependent Care program?  These
    girls do not have social security numbers, although they can get
    them.  But if they do, are they liable for taxes?  They are only
    here for one year.  
    
    I know I am awfully late with this question.  The PSA's say to call
    the IRS.  Au Pair International says that they cannot give tax advise.
    I had just assumed we were not eligible since our accountant had
    not allowed  us the child care credit with an au pair.  Are the
    eligibility requirements identical for both benefits?
    
    Scratching my head....
    Norma

Anyone, anywhere in the world can get a Social Security number.

Non-residents can go to their nearest U.S. consulate with a signed statement
that the number is needed for use in a record-keeping system in the U.S. which
uses social security numbers as a key.

Persons here on temporary visas with no permission to work can do the same
thing at any Social Security Administration office.

Persons with permission to work indicated on their visa can get a social
security number with no special statement needed.

Au pairs may be exempt from social security tax (sort of like student assistant
jobs at universities) but are not exempt from income tax reporting requirements
(although their income may be low enough that the tax will be zero).

/john

    Both plans cover accidents 100% UNTIL you are admitted.  Then only
    plan 2 covers you 100%.  
    
    Chris D.

    Re: .23
    
    DEC will pay for glasses required for video terminals.
    I posted some more details in note 150.13.

    re: .73
    
    in the USA only...

    Just got the new blue plastic credit card size insurance card in the
    mail recently.  On the back it says to call:
    
    	DTN 223-3300
             or
    	1-800-DEC-2060
    
    Of course what good do either of those numbers do you if you are
    on vacation outside of the US?
    
    Of course if you just happen to know to replace the 223 with
    508-493 you are in luck but I wonder how many people know that?

>    Of course if you just happen to know to replace the 223 with
>    508-493 you are in luck but I wonder how many people know that?

You may not know that, but hopefully you know that corporate headquarters is
in Maynard, know how to call directory assistance to find out the number of
corporate headquarters, and know that the people who answer the phone at
the corporate headquarters switchboard can give you the information.

/john

    This indeed looks like an oversight.  But if I was outside the US
    and had a medical emergency, I would be too under the gun to think of
    calling all kinds of places to get the direct number.  I would call
    the switchboard at OUR office (number is already memorized) and
    ask for a DTN patch to the number on the card.  One less thing to
    worry about while having medical problems in a foreign country.
    
    BTW, I wish the direct number would appear on our card.
    
    .......... Suchindran

    
    In a medical emergency outside the US you might be in a coma, and
    the medical personnel trying to place the call might not speak [good]
    English. It is certainly possible they may not know the number of
    the local Digital office...
    
    My medical emergency card (issued by a third party insurance company)
    gives (in fairly small print) instructions in English, French, German
    and Chinese (which I'm told is equally readable to Korean and Japanese
    readers). It clearly expects the call to be placed by my doctor,
    not by me. It lists the correct international format phone number
    (with the '+' sign instead of the local international dialing access
    code, followed by the country code for the UK and a the correct
    phone number...)                             
    
    /. Ian .\

I told my PSA about this.  She did not know that 800-numbers are useless
outside North America.  She will bring it up at a big review meeting they are
having.  I suggested the cheapest repair would be to issue stick-on labels
to go on the back, replacing the dialing instructions.  (Like the sticker you
get on your driver's license when you change your address.)

    re .80: She will bring it up at a big review meeting they are
    
    Well what happened at the big review meeting?
    
    Also the brochure that I just received in the mail for 1990 still
    has only the 800 number and the DTN listed.
    
    Will someone who works in Canada please call 800-DEC-2060 and see
    if it goes through?

    >>>   Will someone who works in Canada please call 800-DEC-2060
    >>>   and see if it goes through?
          
    
    "We're sorry, your call cannot be completed as dialed. Please check
    the number ... blah blah"
    
    Nope.
    
    Scooter

	Geez, I haven't had a raise in two years and when I do 

it will be around 2.3%....How about something for the employees

not thier family...

	Ahhhhh forget it....



From:	NAME: US Human Resources            
	FUNC:                                 
	TEL:                                  <RESOURCE.HUMAN AT A1 at SALES at AKO>
To:     See Below

 **********************************************************************
                 This is from Bruce N. Davidson, Manager
            Employee Assistance and Family Resource Programs
 **********************************************************************
 
 Celebrating May as Older Americans month, Digital is announcing a new 
 eldercare resource and referral service for U.S. Digital employees.  
 This service will allow employees to call 1-800-635-0606 to receive 
 free counseling on caring for their older relatives. The counselors 
 will assess the situation by phone and provide information or referrals 
 on a wide range of issues, including home safety, home health care, 
 Medicare/Medicaid, power of attorney, living wills and long distance 
 care giving. The new eldercare service will be provided by Work/Family 
 Directions, the leading provider of corporate work-life services in the 
 United States.
 
 Digital is committed to helping employees handle life cycle transitions 
 in a healthy way. The company has offered professional consulting 
 through the Employee Assistance Program (EAP) for more than a decade.  
 In 1988, recognizing that employees were having difficulties with 
 parenting and childcare issue, Digital introduced a Child Care resource 
 and referral service. Digital later expanded these services to include 
 school age education guidance, adoption assistance and college 
 planning.  Now, Digital will expand further to include caring for older 
 relatives and adult dependents.  This full spectrum of free services 
 now called, WorkLife Connections, spans the life cycle of employees.
 
 WorkLife Connections 
 
 You can access an online infobase on a wide range of WorkLife 
 Connections topics.  Type VTX WORKLIFE at the $ prompt. New 
 information, articles, publications and tip sheets are added  monthly.
 
 You can reach EAP for information or an appointment by calling 
 1-800-889-4017.  EAP is there for employees who want to speak with or 
 meet with a counselor to discuss, for example, anxiety or stress 
 reduction, sleeping or eating difficulties, substance abuse issues, 
 managing family or personal relationships, financial or legal 
 problems.
 
 You can reach Work/Family Directions for information or advice on the 
 full range of life cycle topics by calling 1-800-635-0606.  Work/Family 
 Directions will provide non-clinical assistance and consultation, 
 useful publications and video material or community referrals on 
 parenting and adoption, childcare and school age needs, college 
 selections information, or eldercare and adult dependent care.
 
 When you're not sure who to call... call either 800 number.  EAP and 
 Work/Family will assess your needs and direct you to the most 
 appropriate resource.
 
 A special pull-out section of the May 29 issue of Digital Today 
 provides further details about the new eldercare services and WorkLife 
 Connections.
 
 Also, you will be receiving a descriptive brochure of the full 
 portfolio of WorkLife Connections services in the Fall with your next 
 benefits package.
 
 We hope you will take the time to review the services to know what is 
 available to you and that you will use the services anytime you need 
 them.
 
 
 Regards,
 
 Bruce N. Davidson, Manager
 Employee Assistance and Family Resource Programs

This message was delivered to you utilizing the Readers Choice delivery
services.  If you have questions regarding this message, please contact
the author of this memo.



To Distribution List:

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    I use to feel the same way but now that my parents are aging and my
    Mom's health has been so bad I was glad to see some type of assistance
    available to help me with my parents.  I agree that raises would be
    nice but I like the "parent assistance" also.  I never realized just
    how tough it is to help your parents...it is really frustrating.
    
    Melody

>> Also, you will be receiving a descriptive brochure of the full 
>> portfolio of WorkLife Connections services in the Fall with your next 
>> benefits package.
    
    I'm curious what the 'next benefits package' that we'll receive
    'in the Fall' is referring to...
    
    	Dave

        RE:.84

    >                                               I never realized just
    >how tough it is to help your parents...it is really frustrating.
     
    	What's so tough about helping your parents?  Just be there when
    they need you, like they where there when you needed them.

    Joe       

    Being there is not the answer...my mother was diagnosed with cancer
    last year and we have been through some real battles with
    insurance/doctors/nurses etc...!  Dealing with times when my father has
    to be away from home which is often because he is a minister.  When you
    have a parent that is bed ridden it does become difficult.  I am not
    frustrated with my parents...it is the system and the difficulties that
    they seem to run into.  It seems that the older citizens are ignored
    and there is just not a lot of help out there.  I have found that when
    your parents get older the roles reverse and you are sometimes put into
    a situation where you are the parent and they are the child no matter
    how much you try and avoid it.  My mother is in remission and getting
    better everyday so I thank God for that blessing but until you have
    walked in my shoes or someone else who has experienced this you could
    not possibly understand.  
    
    Melody

    Melody:
    
    Here Here.... I've been there and I agree.....  My Mother passed away
    12 years ago which left me with a 65 year old who had never written a
    check, made a deposit, washed a dish or done laundry.  Being there is a
    given for most children where there parents are concerned; but some of
    us simply don't have the financial or emotional wherewithall REQUIRED
    to become the "parent" of our parent(s).
    
    Tuff ain't the word....
    
    Toodles.....JPs
    

	I'm glad everyone got the jist of my message...

	/Cap'n Quad

	RE: last few

		I never said it was easy.  I said just be there for them
	like they where there for you.  I won't into detail like some 
	here do about individual problems and just to let you know I've 
	worn a few different pairs of shoes in my time maybe not the same 
	exact pair you've got on right now but enough to know.  My point is 
	we owe everything that we are to our parents, they gave us life.  
	I'm going to give them anything they need that I can, without 
	complaining.

	Joe

    My take on the new bennies for elder care consists of the fact
    that a group of people have written these wonderful little 
    pamphlets for us to get when we call their number.  The actual
    hand-holding is not provided by this new service, IMHO.

    But it sounds like a new service.