University of South Alabama
Fringe Benefits Committee – Meeting Minutes
Date:
Time:
Place:
1
May 7, 2013
3:00 p.m.
HR Learning & Development Center
Members
Mr. M. Wayne Davis
Dr. Lanier S. Cauley
Ms. Janice Collins
Mr. Charles Dunnam
Ms. Cathy Faison
Ms. Amy Fleet
Dr. Susan Gordon-Hickey
Mr. Ronnie Hodges
Dr. David Johnson
Mr. Andy Lightbourne
Dr. Doug Marshall
Dr. Vaughn Millner
Dr. Mike Mitchell
Mr. John Pannelli
Ms. Kelly Peters
Dr. Victoria Rivizzigno
Ms. Barbara Shirvanian
Dr. J. Allan Tucker
Ms. Carolyn Williams
Financial Affairs
Mechanical Engineering
Radiology - UMC
Maintenance Department
Admitting - CWH
Marketing & E-Commerce
Chair, Faculty Senate Fringe Benefits Committee
Pharmacy - CWH
Academic Affairs
Computer Services Center
President, Faculty Senate
Continuing Education
Student Affairs, Dean of Students
COM Business Office
Business Office
Arts & Sciences
Student Affairs
Pathology - UMC
Medical Surgical - UMC
Present
Present
Present
Present
Absent
Present
Present
Present
Present
Present
Absent
Present
Present
Absent
Absent
Present
Present
Present
Present
Others Present
Ms. Pamela Henderson, Assistant Vice President, Human Resources
Mr. Gerald Gattis, Director, Human Resources, Benefits/Employee Relations
Ms. Tina Stalmach, Associate HR Manager, Employee Benefits
Mr. Ed Kahalley, Jr., Benefits Consultant, Secretary to the Committee
Ms. Lakeisha Felder, Mitchell Cancer Institute
Call to Order & Meeting Minutes
Mr. Davis called the meeting to order and asked for approval of the January 29, 2013, meeting
minutes. A motion was made, seconded, and the vote unanimous to dispense with the reading of
the meeting minutes and approve same as prepared by the Secretary.
Mr. Davis introduced new members Dr. Mike Mitchell, Assistant Vice President, Student
Affairs, Dean of Students, Dr. Doug Marshall, President Faculty Senate, and Dr. Susan GordonHickey, Chair, Faculty Senate Salary & Fringe Benefits Committee.
University of South Alabama
Fringe Benefits Committee – Meeting Minutes 5/07/2013
2
USA Employee Health Promotion Campaign:
Ms. Lakeisha Felder distributed information on the Health Promotion Campaign and talked
about the importance of colorectal screening for prevention and early detection of cancer. She
emphasized that this is the second leading cause of cancer and that early treatment is very
successful. Because there are no symptoms, it is often overlooked when individuals 50 or older
should have a routine screening. She presented a new screening process that is not invasive and
explained that this would be highly promoted as the cornerstone of the USA Employee Health
Promotion Campaign. She completed her presentation, answered questions and left the meeting.
PPCACA Compliance Update – 2014
Mr. Kahalley distributed a report on the Affordable Care Act (ACA) and compliance issues. He
stated that compliance for the Plan year starting January 2014 would require changes to policy
and procedures as well as an increase in cost. He reviewed nine items of compliance of which
the new definition of a full-time employee may pose the most difficult to administer and costly.
He stated that the direct cost of compliance would include $588,672 for the transitional
reinsurance program, $250,000 for elimination of the waiting period for a pre-existing medical
condition and the cost of offering coverage to previously non-benefits eligible employees. The
last item has a variable cost based on the number of individuals who will change to a benefits
eligible status with an estimated annual cost of $6,970 per individual.
He explained that there was special consideration for educational institutions concerning months
of employment and part-time or adjunct professors. He stated that the regulations are in the
comment period at this time. Final guidance should be received soon.
Mr. Kahalley answered questions and concluded his review.
Experience Report:
The Experience Report for the 3-month period ended March 31, 2013, was distributed. The
Consultant stated that expenses exceeded revenue by $189,476. The claims experience for the
quarter was heavily impacted by one large claim. He stated that he expected the experience to
moderate and return to a normal trend rate.
He stated that Blue Cross and Blue Shield planned to present the projected cost for 2014 within
the month. That, along with utilization and cost data, will be used to develop the annual
valuation report. That report will cover the projected cost, suggested funding rates as well as
compliance issues for 2014. He stated that at this time, it appears that 2014 will require
additional funding.
The Consultant completed his review of the Experience Report.
University of South Alabama
Fringe Benefits Committee – Meeting Minutes 5/07/2013
3
New Business:
A member noted that the Chairman would retire soon. He stated that this might be Mr. Davis’
last meeting with the Committee. All members agreed that the University and its employees
greatly benefited from Mr. Davis’s stewardship over many years. They thanked him for his
services.
Adjourn:
There being no other business to come before the Fringe Benefits Committee, the meeting was
adjourned at 4:20 p.m.