General Motors has made a deal with Henry Ford Health System, a Detroit-based hospital system, to provide a new health care plan to its salaried employees and their dependents in southeast Michigan, the Wall Street Journal reported on Monday. The optional ConnectedCare plan, which will be available to some 24,000 GM employees and their dependents starting next year, replaces traditional group health insurance with a direct-contract system wherein Henry Ford will manage nearly all of the participating employees’ health care needs.
The company’s existing health insurance options will remain available, but the ConnectedCare plan is expected to save them anywhere from $300 to $900 a year compared with the current cheapest option. According to a press release from the Henry Ford system, the plan will give GM employees access to more than 3,000 health care providers offering “a comprehensive range of health care services including primary care, more than 40 specialties, behavioral health services, hospitalization and emergency care as needed, as well as pharmacy and other services.”
Under the five-year contract, the hospital system agreed to specific goals for quality, cost and customer service. For instance, plan participants are promised same-day or next-day appointments with primary care physicians and appointments with specialists within 10 business days. They will also have access to a range of digital health tools, wellness services, and assistance in managing their care and choosing the right health care options, Henry Ford said in its statement.
Blue Cross Blue Shield of Michigan, GM’s insurance provider in that state, will continue to manage claims-processing and other functions, while again continuing to provide the PPO plans GM already offers its employees. ConnectedCare will not apply to GM’s large unionized workforce in Michigan, whose health benefits are negotiated under a labor agreement.
Last week, Michigan Governor Rick Snyder signed into law a bill preempting local governments within the state from regulating the questions employers are allowed to ask candidates during job interviews. The broad anti-regulatory measure is aimed specifically at restricting local ordinances prohibiting inquiries about candidates’ salary histories, Jackson Lewis attorneys Stacey A. Bastone and K. Joy Chin observe at the firm’s Pay Equity Advisor blog, reinforcing a 2015 law that prohibited local administrations from banning these questions on job applications:
At the time of the bill’s signing, no municipality in the state had proposed an ordinance restricting pre-employment inquiries into salary history. Proponents of the bill contend that asking about an applicant’s past or current salary is a standard business practice and assists employers in budgeting. Opponents argue that soliciting salary history can perpetuate discriminatory pay gaps. …
Wisconsin’s legislature is also poised to pass similar legislation, they note, which Governor Scott Walker is expected to sign. Michigan and Wisconsin here are employing a legislative tactic that has become increasingly common in the past year among states with conservative governments to prevent their more liberal cities from implementing their own, more progressive employment regulations. At the same time, other, more liberal states are pursuing more employee-friendly labor regulations, including higher minimum wages, paid family leave and sick leave mandates, restrictions on the use of non-compete agreements, and even protections for employees who use marijuana in states where the drug has been legalized.
When it comes to salary histories, these midwestern states with Republican governors are going against the prevailing trend. Bans on these inquiries have been passed in California, Delaware, Massachusetts, Oregon, Puerto Rico, New York’s Albany County, New York City, and San Francisco, while 14 other states are considering them.
Last year, we looked at the changes legacy US automakers have been making to their corporate cultures and recruiting practices in an effort to lure talent away from Silicon Valley and into the increasingly high-tech field of automobile design and manufacturing. Bloomberg Tech checks up on what these companies are doing now to entice tech talent, particularly millennials, to choose Detroit over Palo Alto:
What Detroit has going for it is the ability to get innovative cars on the road relatively quickly. That can be appealing for young auto-techies bent on changing the world. Then there’s the cost of living, dirt cheap in Detroit compared with the Valley, along with modern urban lofts sprouting among the gritty downtown streets.
Still, Detroit remains a tough sell, given the Valley’s $1 million signing bonuses and fat equity stakes in promising startups. The car companies’ answer tends to fall in the work-life balance category, with features that have become almost cliches such as treadmill desks and “hoteling” stations for staffers passing through. …