Reason for Change
The benefits provided to University faculty and staff members, as part of their total compensation package, enable the recruitment and retention of talent to support the University’s mission of teaching, research and service.
The current flexible benefit structure is not sustainable over the long term. The University will continue to pay more in benefits for faculty and staff each year, but the recent rate of increase cannot be sustained. Over the past five years the Flexible Benefit credits provided under the current structure to support health insurance have increased 70 percent. This rate of growth is why we must take thoughtful action in order to begin to slow this growth in future years, and thereby help in meeting the University’s obligation of providing Iowans with a high-quality, affordable education.
University Wellness programs and their increased emphasis on prevention, and the use of generic drugs have helped slow the increase in University health insurance costs, but the overall program costs continue to grow at a much faster pace under the current structure of the Flexible Benefits program.