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(UI Benefits Office)
Office of the President
FRIC meeting notes
October 4, 2013
Meeting started at 11:30 am
Funded Retirement and Insurance Committee Minutes from October 4, 2013
Members in attendance: Steve Bernholtz, Nancy Davin, Katherine Dudley, Bernard Sorofman,, Lynn Vining, Daniel Katz, Sheldon Kurtz, Anand Vijh, Nicole Nisley, Amber Seaton, Mary Greer.
Members absent: Katherine Tachau, Jon Garfinkel, Matthew Glasson
Administrative Officers present: Sue Buckley, Richard Saunders
Committee members, administration representatives, and guests introduced themselves.
The minutes of meeting from September 6, 2013, were approved unanimously.
TIAA-CREF Revenue Credit – Richard Saunders
University retained $160K to help cover the operating costs of the Benefits Office related to the pension plan. Remaining 1.4 million to be distributed to TIAA-CREF employees not annuitized. Motion to continue to distribute the full/remaining balance to the participants, current and past employees, who have deposits in an active annuity account (2 TIAA & 8 CREF) not annuitized, and in proportional amounts based on their account balances made by Daniel Katz, motion passed. It was also determined that as long as the University continues to receive these funds, it will not need to be brought back to FRIC unless something changes.
UICHOICE ACO – Group
No new information.
Affordable Care Act (ACA) Update – Richard Saunders
There are many technical glitches with the website. Iowa is using federal system website HealthCare.gov.
UICHOICE Levels – Richard Saunders
UI HC has developed an alliance with MercyCare of Cedar Rapids, Mercy Des Moines and Genesis from the Quad Cities. The primary care providers of the partners will be incorporated into level 1 allowing the $5 co-pay rather than the Level 2 $20 co-pay. The goal is to implement this by January 1, 2014.
2014 OPM – Ricard Saunders
Traditionally coinsurance and deductibles count towards out of pocket maximum, co-pays do not apply. For 2014 the medical OPM will include all co-pays. All drugs count towards OPM for prescription drugs. This change was mandated by the ACA.
2015 OPM – Richard Saunders
The ACA will require one OPM for medical and prescription drugs. OPM can’t be separated anymore and cannot exceed a Federal limit for OPM $6053 for singles and $12,700 for families. Currently the UICHOICE combined medical and drug OPM is $4,800 for singles and $9,600 for families.
Anand Vijh requested information on what OPM people have paid so we can see how many people hit their OPM? Most inpatient stays will cause a person to have hit their OPM.
Dental Coinsurance – Richard Saunders
Currently under Dental 2, 100% preventative care is paid, 80% restorative, 30% orthodontic. This is in line with other comparable employer plans, except for the orthodontic which typically is provided at a 50% benefit paid by employer and 50% paid by employee. $235K spent last year on orthodontic/implants. If we increase our coverage it would increase the total cost approximately $165K which translates to $13 per contract per year.
Nancy Davin motioned it was 2nd by Nicole Nisley to increase the percent coverage from 30% to 50% for the orthodontic care , motion passed.
Dental Annual Maximum – Richard Saunders
A new concept from Delta Dental of a rolling deductible was created. If a person uses $1K of their $2K benefit limit for one year, the next year they would have $3K as their benefit limit (1K prior year benefit limit balance + Current year benefit limit). Maximum benefit carried forward would be equal to the benefit limit. This could potentially double the benefit limit for the next year. The cost would be $500K-$600K a year which translates to approximately $50 a person. Approximately 600 people could have potentially carried forward used balances last year. No action was taken on this matter.
Dental Network – Richard Saunders
Delta Dental created a new provider network program for PPO dentists. PPO dentists will accept a reduction of 25-26% in payments, thus creating savings to both the employer and employee. The provider accepts the reduction, but hopefully creating more business since patients will change for the savings. As an example, a charge of $230 for a non-PPO provider claim would cost $140 under the PPO provider, creating a saving of $90 which is hared by both the university and the employee. The University of Iowa Dental School is a participating PPO provider. Every area of the state does not have PPO providers. This change would save an approximate $420K per year. No action was taken on this matter.
10. The meeting adjourned at 1:00 pm.
Recorder: Katherine Dudley