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.