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FRIC meeting notes
Funded Retirement and Insurance Committee Minutes from December Funded Retirement and Insurance Committee Minutes from December 6, 2013
Meeting was called to order at 11:30 am in 302 USB.
Members in attendance: Steve Bernholtz, Nancy Davin, Katherine Dudley, John Garfinkel, Bernard Sorofman, Lynn Vining, Daniel Katz, Anand Vijh, Amber Seaton, Katherine Tachau.
Members absent: Matthew Glasson, Mary Greer, Sheldon Kurtz, Nicole Nisly
Administrative Officers present: Sue Buckley, Richard Saunders
1. Committee members, administration representatives, and guests introduced themselves.
2. The minutes of meeting from November were not available for approval.
3. UICHOICE ACO – Chris Miller
UIHC would like to provide more follow up for those with certain chronic conditions (Hypertension, Asthma, Diabetes, and Musculoskeletal conditions) in the hopes of reducing the risk of repeat admissions and in maintaining or reducing their claim costs along with the severity of their chronic conditions. Measures would be developed to judge the success of the program in caring for those patients.
4. ACA Update - Saunders
As a higher education institution, the UI would be required to cover more employees than the currently are doing now. If any students, fellows, adjunct faculty or PT workers are working more than 50% time, they would have to be given the opportunity for insurance benefits. This would include temporary employees. This will add more employees to the insurance pool with increased premium cost to the UI.
5. Dental Coinsurance – Saunders
At the prior meeting FRIC agreed to increase the percentage covered by the University for Orthodontic Care from 30% to 50% for 2015. This change would increase the total cost by approximately $157,000.
6. Dental Annual Maximum – Saunders
Another new option that is available for 2015 is the ability to carryover up to an additional amount of the unused maximum benefit for Parts B & C, not to exceed $2000. This carryover would continue forward until needed. This change would increase the total cost by approximately $420,000.
7. Dental Network – Saunders
Another new option for 2015 is to create a three tier dental network. Tier 1 would consist of a preferred provider group, which includes the University of Iowa Dental College, Tier 2 would be all other Delta Dental providers, and the 3rd Tier would be all other dental providers. Both the UI and the employee save when the employee chooses a dentist from the Tier 1 network. The savings would be approximately 25%. The savings is estimated to be approximately $400,000.
8. Supplemental Life Insurance – Saunders
The current supplement life insurance goes up to 3.5 times the salary with no limit. The insurance company would like to limit that amount so that no one single large claim would affect the rates for the rest of the participants. The group voted to limit supplemental insurance to $1 million. Only 62 employees would be affected by this move.
9. Long Term Disability Insurance – Saunders
Drugs/Alcohol/Mental Health claims are increasing at an alarming rate. Mental Health/Drugs/Alcohol is about 10% of the cases but is 33% of the total cost of this plan. We will get more data on the breakdown of claims before a decision is made on whether or not to limit the period of time a person on disability could collect. Currently, the standard policy written has a 24 month limitation on these type of claims, while our policy has no limitation.
10. 2015 OPM – Saunders
Under the ACA, we can no longer have separate out of pocket maximums for our health and drug claims. We will need to set a new amount for 2015 for just one OPM for everything.
11. Health Care Spending Accounts.
There are more than 10,000 people in spending accounts with the UI. The Federal rules have changed and will allow a person to rollover up to $500/year into their next year’s account. Before the rollover funds can be used each year, a person must exhaust the funds in the current years account. This could create a perpetual rollover into spending accounts, even if the employee leaves the UI. Currently the funds left over in the accounts at year are forfeited back to the University. These funds are used to finance the various Wellness programs that are offered to the employees.
12. The meeting adjourned at 1:00 pm.
Recorder: Steve Bernholtz