Bad News Memorandum Solution
MEMORANDUM
TO:
Midland Company Employees
FROM:
Joseph T. Ramone
Vice President
DATE:
March 13th, 2021
RE:
Maintaining Quality Health Care
J.T.R.
Health care programs have always been an important part of our commitment to employees at
Midland Company. We're proud that our total benefits package continues to rank among the best
in the country.
Such a comprehensive package does not come cheaply. In the last decade, health care premiums
have risen nearly 10 percent every year. We are told that many factors fuel the cost spiral:
higher hospital costs, increased use of prescription drugs, stricter state and government
mandates, and costly defensive medicinal techniques to help avoid malpractice lawsuits.
Just two years ago, our monthly health care cost for each employee was $415. It rose to $650 last
year. We were able to absorb that jump without increasing employee contributions. This year's
hike to $1125, however, forces us to ask employees to share the burden of the increase.
Although, as of May 1st you will be paying $305 a month to maintain your current health care
benefits, (formerly $228 a month) the major portion of your coverage is still paid by Midland.
The enclosed rate schedule describes costs and benefits for families and dependents. Please note
that we have been able to add a new convenient benefit in that you may now order maintenance
prescriptions by mail. You can learn more about your benefits and find answers to your
questions at www.midlandbenefits.com .
Midland continues to pay the major portion of your health care program because we think it is a
wise investment. You can count on us to be constantly searching for ways to maintain current
levels of benefits while controlling costs.
Should you have questions, I may be reached at (716) 645-5246, or at jtramone@midland.com .
Source: Guffey, M.E. Essentials of Business Communication. Cengage Learning. 2007.
ISBN: 9780324587999.