...Projections that the provision would reduce costs arose, in part, from claims that Safeway Supermarkets had achieved flat health care costs from 2005 to 2009 by tying employees' health insurance premiums to outcome-based wellness incentives. It later became clear, however, that Safeway's program began in 2008 — too late to deserve credit for flat costs starting in 2005.

A review of Safeway documents and interviews with company officials show that the company did not keep health-care costs flat for four years. Those costs did drop in 2006 -- by 12.5 percent. That was when the company overhauled its benefits, according to Safeway Senior Vice President Ken Shachmut.

The decline did not have anything to do with tying employees' premiums to test results. That element of Safeway's benefits plan was not implemented until 2009, Shachmut said.

After the 2006 drop, costs resumed their climb, he said.

Even as Burd claimed last year to have held costs flat, Safeway was forecasting that per capita expenses for its employees would rise by 8.5 percent in 2009. According to a survey of 1,700 health plans by the benefits consultant Hewitt Associates, the average increase nationally was 6.1 percent.