MINUTES
EMPLOYMENT BENEFITS COMMITTEE
July 15, 2010
Members Present
Don Clothier
Debbie Copp
Brenda Freese - Chair
Suzanne Gilmore
Chad Johnson
Frank Lawler
Sue-Anna Miller
Jannie Porter
Will Wayne
Frances Wen
Members Absent
Alisa Dougless
Don Harrison
Scott Moses
Darryl McCullough – Vice Chair
Simone Pulat
Justin Wert
Ex Officio Members
Barbara Abercrombie
Julius Hilburn
Nick Kelly
The meeting was called to order by the Chair at 1:35 pm.
I.
Approval of Minutes
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The June minutes were approved with no changes.
II. 2011 Health and Dental Insurance Renewal
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Discussions regarding 2011 medical insurance rates have been ongoing with
BCBS for about 2 months.
Preliminary projections for 2011 rates have been developed assuming no changes
to the University contribution strategy or salary tier structures.
Current contract with BCBS caps overall rate increase at 10% for 2011.
Preliminary projections from BCBS indicate:
 PPO increase of approximately 7% - 9%
 HMO increases of approximately14% - 16%.
HMO continues to have higher percentage increase than PPO option.
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Factors contributing to the HMO’s higher percentage increase year to year:
 Adverse selection. Members with chronic conditions or those with
foreseeable high cost events tend to migrate to the HMO. This allows
them to control and plan for out of pocket costs.
 Higher benefit utilization. Members on the HMO plan seek more medical
services.
 HMO benefit design provides a high level of benefits. Copays are low for
many high dollar services such as MRI, outpatient surgery, and inpatient
hospital stays.
 In order for plan design changes to have a significant impact on
rates, changes would need to be significant.
 The above projections would result in PPO and HMO premiums becoming
extremely close. Additionally, there would be significant cost increases
required for those covering dependents, particularly on the HMO.
 HMO plan design options and viability beyond 2011 are being evaluated.
 Negotiations with BCBS are continuing. The impact on projected rates of
plan design changes is being evaluated.
 Discussions will include exploring possibility of extending the current
agreement and rate cap for 2012.
 Current contract with Delta Dental caps rate increase at 10% for 2011. It is
expected that OU will see a 10% increase.
Next Steps
 Finalize 2011 rate negotiations
 Submit for Regents approval in September
 Continue discussions with BCBS regarding a rate cap for 2012
III. Wellness Update
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Discussions are underway with BCBS to design a wellness incentive
program.
 Participation in certain programs would allow employees to earn
credits toward deductibles or co-pays
 There will be an array of programs so that all employees will have
the opportunity to participate
Costs of these wellness incentives and financial impact on medical
insurance costs being evaluated.
1st annual 5K run and 1 mile walk will be August 28, 2010 at 7:30 a.m.
IV. Updates from the Chief Human Resources Officer
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There were no updates
V. Other Business
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The BCBS executive summary requested by the committee in the June
meeting is still under review. The review process should be complete and
the summary released in the coming weeks.
The next EBC meeting will be Thursday, August 19, 2010.
The meeting was adjourned at 2:20 p.m.