University of South Alabama
Fringe Benefits Committee – Meeting Minutes
Date:
Time:
Place:
1
August 7, 2012
3:00 p.m.
HR Learning & Development Center
Members
Mr. M. Wayne Davis
Dr. Phil Carr
Dr. Lanier S. Cauley
Dr. Thomas Chilton
Ms. Janice Collins
Mr. Charles Dunnam
Ms. Amy Fleet
Mr. Ronnie Hodges
Dr. David Johnson
Mr. Andy Lightbourne
Dr. Vaughn Millner
Mr. John Pannelli
Ms. Kelly Peters
Dr. Victoria Rivizzigno
Ms. Barbara Shirvanian
Dr. John Smith
Dr. J. Allan Tucker
Dr. David Turnipseed
Ms. Carolyn Williams
Financial Affairs
Faculty Senate
College of Engineering
College of Education
Department of Radiology - UMC
Maintenance Department
Marketing & E-Commerce
Pharmacy - CWH
Academic Affairs
Computer Services Center
School of Continuing Education & Special Programs
COM Business Office
Business Office
College of Arts & Sciences
Student Affairs
Student Affairs
College of Medicine
Faculty Senate
College of Medicine
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Absent
Absent
Absent
Present
Others Present
Ms. Pamela Henderson, Assistant Vice President Human Resources
Mr. Gerald Gattis, Associate Director of Human Resources
Ms. Tina Stalmach, Assistant HR Manager, Employee Benefits
Mr. Ed Kahalley, Jr., Benefits Consultant, Secretary to the Committee
Call to Order & Meeting Minutes
Chairman Davis called the meeting to order and asked for approval of the April 24, 2012,
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 stated that Dr. Phil Carr, President of the Faculty Senate had replaced Mr. Tom
Meyer, and he welcomed Dr. Carr to the Committee.
University of South Alabama
Fringe Benefits Committee – Meeting Minutes 8/7/2012
2
Survey of Orthodontic Coverage
Mr. Gerald Gattis stated that a Committee member had expressed interest in orthodontic
coverage at the last meeting resulting in a survey of peer institutions. Ms. Tina Stalmach
reviewed a summary of the survey results with the Committee. She stated that two of the four
institutions offered no coverage and two offered coverage limited to 50% up to $1,000 under a
voluntary dental benefit. Mr. Gattis stated that the University of South Alabama’s dental benefit
is included in the Health & Dental Plan cost and the benefits are in line with other institutions if
not slightly better. He noted that SouthFlex offers the opportunity to tax shelter medical costs
and this is a useful tool for those needing this type of dental service. The Committee members
agreed that the current benefit is adequate.
A motion was made, seconded and the vote unanimous not to recommend a change to the current
dental benefit.
2013 Cost Projection
The Consultant distributed the 2013 Cost Projection report. He stated that the University had
just received the annual renewal analysis report from Blue Cross Blue Shield as well as the
annual Valuation report. Both reports contain an estimate of the 2013 cost which is used in
preparing the University’s budget.
The Consultant explained the financial arrangement used by the USA Health & Dental Plan
which is based on a cost sharing allocation with the University paying 75% of the projected cost
and the employees 25%. He stated that there is also a suggested reserve to stabilize the ups and
downs of the claims experience.
The Consultant reviewed the report with the Committee. He stated that the projected cost
indicates a need for additional funding. The current funding rates adopted 1/1/2012 produce
revenue of $38,350,872 compared to the projected cost of $40,771,586 indicating an increase of
$2,420,714. That increase will average $46.44 per covered subscriber per month.
He proceeded to review utilization and paid claim data shown in several different formats
addressing both major lines of coverage, large claims and an analysis by type of service.
Mr. Davis stated that any increase will be difficult during these lean years. He stated that the
University was considering a new medical plan (Tier II), which would affect only new
employees. It would be designed to reduce costs while providing an adequate level of benefits.
The Consultant stated that the annual Valuation report had been presented this week and the
Management Committee had not reviewed that information. He stated that no decision on the
allocation of the suggested increase of $46.44 had been made.
Adjourn:
There being no other business to come before the Fringe Benefits Committee, the meeting was
adjourned at 4:35 p.m.