Word: nickerman
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Dates: during 1980-1980
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Confronted by repeated rises in the cost of his California district's health insurance plan and by lower revenues stemming from the state's tax-cutting Proposition 13, Assistant School Superintendent Ed Nickerman of Mendocino County knew he had to cut these bills. But how? After six months of campaigning, he persuaded the county school board to adopt his idea: the district's 165 school employees would be rewarded to stay well...
...Nickerman's health incentive scheme works by annually crediting each participant with $500 in a credit union account. The employee can use the money to pay medical bills; any expenses above $500 are covered by Blue Shield. Thus the plan resembles a typical deductible program, with a difference: any money left over at the end of a year belongs to the employee, to be collected upon retirement or as severance pay. Interest on principal goes to the school district's insurance fund. Since the stay-well program began in 1979, employees have become extremely cautious about running...
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