MINUTES
EMPLOYMENT BENEFITS COMMITTEE
June 17, 2010
Members Present
Don Clothier
Debbie Copp
Brenda Freese - Chair
Suzanne Gilmore
Don Harrison
Chad Johnson
Frank Lawler
Darryl McCullough – Vice Chair
Sue-Anna Miller
Jannie Porter
Will Wayne
Frances Wen
Members Absent
Alisa Dougless
Scott Moses
Simone Pulat
Ex Officio Members
Barbara Abercrombie
Julius Hilburn
Nick Kelly
The meeting was called to order by the Chair at 1:30 pm.
I.
Approval of Minutes
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The May minutes were approved with one change in Section IV. Update
on Dependent Coverage/Campus Communication. The first bullet will be
changed to reflect that dependents may stay on their parent’s plan through
the end of the month in which they turn 26 rather than the end of the year.
II. 2011 Health and Dental Insurance Renewal
 2011 will be OU’s 3rd year with BCBS, and the last year in which there is
cap on rate increases.
 There will be a 10% overall maximum rate increase
 In 2010 rate increases were:
 PPO & HCA – 9.4%
 HMO – 13.2%
 It is anticipated that 2011 rate increases will be similar to those in 2010.
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OU pharmacy costs are higher than other similar groups in the BCBS book
of business even though we do not use more prescription drugs. The
driver is the high volume of brand name drugs when there a generic is
available.
BCBS will provide suggestions for cost reductions in 2011.
Since there will be no cap on the rate increases in 2012, Julius stated that
discussions will begin early in order to control renewal costs as much as
possible for the 2012 plan year.
A 10% maximum increase guarantee is in place for Delta Dental in 2011.
There will be no rate increase on the VSP vision plan.
Ancillary benefits, such as life insurance and AD&D, will have no
increase.
Comment: Darryl McCullough suggested that doing a Request For Proposal would
increase OU’s negotiating leverage.
Response: Julius told the group that an RFP is a large investment of resources, both for
the issuer and those who submit bids. BCBS may be motivated to aggressively negotiate
an extension rather than compete during an open solicitation. A decision will be made in
early 2011 on which approach is in the University’s best interests.
Comment: Don Harrison cautioned the group that total health care costs must be kept in
mind; cutting costs in one area has the potential to raise costs in another.
III. Health Care Reform
 There has been some clarification received since the last meeting
regarding the coverage of 26 year old children on the plan. Although the
tax law has been updated to allow parents to cover their children through
the end of the year in which they turn 26. Although the IRS amended
their rules to allow for such coverage, health plans are not obliged to
follow suit. BlueCross BlueShield only allows 26 year olds to be covered
through the end of the month in which they turn 26.
 As previously discussed, there will be some changes to over the counter
drug coverage on the flexible spending accounts, effective January 1,
2011. Items such as ibuprofen, allergy medicine, and cold medicine will
no longer qualify for reimbursement without a prescription, however,
certain items such as bandages, over the counter reading glasses, and
contact lens solutions will be eligible. A more comprehensive list will be
distributed to the campus during open enrollment.
 Community Living Assistance Services (CLASS) Act is a consumerfunded, voluntary Long Term Care program created under the health care
reform legislation. Information has been scarce and Human Resources is
in the process of determining the effect it will have on OU, if any.
IV. Updates from the Chief Human Resources Officer
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Retiree Medical - It is not anticipated that the President will recommend
any retiree medical changes to the Board of Regents until after the fall
semester begins.
Budget & Benefit Costs - Based on current budget projections, there are
no current plans to reduce University contributions to defined contribution
plans or implement furloughs.
Record Keeper – The Retirement Management Committee has gone
through the due diligence process and a summary has been submitted to
President Boren. As soon as approval is received from the president the
committee will have more freedom to discuss the chosen vendor. It is
expected that implementation will take approximately 6 months, although,
there is no definite timeframe on when it will begin.
The next EBC meeting will be Thursday, July 15, 2010.
There being no other business, the meeting was adjourned at 2:15 p.m.