MINUTES
EMPLOYMENT BENEFITS COMMITTEE
August 23, 2012
Members Present
Brenda Freese, Chair
Debbie Copp
Don Clothier
Suzanne Gilmore
Suzanne Harrell
Members Absent
Don Harrison
Alisa Dougless
Aimee Franklin
Chad Johnson
Ron Kantowski
Vince Leseney
Jannie Porter
Frances Wen
Sue-Anna Miller
Will Wayne
Jerry Weber
Ex Officio Members
Barbara Abercrombie
Julius Hilburn
Nick Kelly
Angela Hawpe
The meeting was called to order at 1:30.
I.
Approval of Minutes
 The June minutes were approved.
II.
Renewal Discussion and Recommendation
 Julius stated the favorable report on preliminary Blue Cross Blue Shield rates for
2013 were discussed at the June EBC meeting. The experience and trends over
the past few years have been positive, and we do not anticipate any changes in
benefits being required. Therefore, the overall increase of 2.5% has been
recommended. Given the increases in health care costs other organizations have
seen, it is a great recognition of the work done by our employees as consumers
that our increase is minimal. We are realizing the impact of these wellness efforts
and work of Nick Kelly and the Benefits staff.
 Nick stated the final renewal for Blue Cross Blue Shield PPO is a 2.5% increase.
All employees will see a 2.5% increase in the OU contribution. PPO members will
also see their employee contribution increase 2.5%. Since the contributions are
based on PPO rates, and the HMO rate is flat, all HMO participants will see a
slight decrease in their contribution. The consumer-driven plan is also increasing
2.5%.
 The preliminary numbers for the Community Care HMO plan in Tulsa show a 12%
increase. This plan has minimal membership, approximately 250 employees, and
high utilization continues to be an issue. Tulsa members who know they need
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significant health care may select the HMO option, and this adverse experience
causes the rates to increase annually while the membership decreases. Nick
stated we do not know the minimum number of members Community Care will
insure on the OU plan. However, any change of 10% or more in enrollment gives
them the ability to modify the rate or they could cancel the plan. Human
Resources will work with the leadership at OU-Tulsa before a final
recommendation is submitted.
Nick asked the committee through Chair Brenda Freese to submit a written
recommendation to approve the recommended rates for 2012, not including
Community Care, by the end of August. Julius stated he and Nick will share
President Clancy’s recommendation regarding the Community Care HMO option
with the Employee Benefits Committee when received.
The Medicare plan retiree medical trend is an increase of 9%; the pharmacy
decreased 18% which resulted in a drop of 1.8% in the cost of retiree medical.
Dental rates are increasing 3.6% for the basic plan, and increasing 8% for the
alternate plan.
There are no changes in benefits or rates for the life insurance, disability, or vision
plans for the upcoming year.
Debbie Copp moved to accept the rates as stated, with the exception of
Community Care. This was seconded by Jannie Porter. The vote was 9 yes (for
the motion), 0 no (against the motion)
Julius stated the recommendation for Community Care will be sent to the EBC
membership prior to the next meeting on September 20. If Employee Benefits
Committee members desire to meet prior to the next scheduled meeting
(September 20), this could be arranged.
III.
Reminder on Attestation of Dependent Eligibility
 Nick stated employees will be asked to attest that dependents they are covering
are eligible to be enrolled.
 This attestation will take place in January, after open enrollment is completed.
IV.
Flat Life Insurance Option
 Last year the decision was made to not allow employees to waive life insurance at
1.5x salary. There have been some on-going discussions regarding additional
taxes employees must pay on any employer-provided life insurance over $50,000
 Human Resources staff has discussed this concern with The Standard and will be
proposing, effective January 1, 2013 to offer a flat $50,000 option. This is a
common option offered by many employers.
 There are no imputed income or tax issues for the first $50,000 of group-term life
insurance coverage provided under a policy carried by an employer.
 If an employee receives more than $50,000 of group term life insurance under a
policy carried by the employer, the cost of coverage over $50,000 must be
considered taxable income.
 No credit or cash refund for the difference will be given to employees who choose
this option.
 Debbie Copp moved that EBC accept this proposal. Don Clothier seconded the
proposal. Vote was 9 for the proposal; 0 against.
V.
Fee Disclosure Timetable for Defined Contribution Plan
 Fidelity will have all fee disclosures ready by the first quarter of 2013.
 There is a $48/year recordkeeping fee ($4 per month) that is charged to each
member’s account that will be itemized on statements beginning in September.
 Communication will be sent to employees in the next month alerting them to the
per-head annual fee prior to September statements being received
 Due to the extension of the effective date of the final rule, plan administrators for
ERISA plans must make the initial annual disclosure to participants no later than
August 30, 2012. Since OU’s plan is a non-ERISA plan, these fees will be
disclosed beginning with the September statements.
 There is also an investment fund fee that will be assessed for each fund that will
appear beginning with the January statements.
VI.
Health Care Reform 2013
a. 85% Medical Loss Ratio (MLR) and refunds
 If an insurance company has an MLR less than 85%, they are required to
issue refunds. However, BCBS of Oklahoma’s medical loss ratio is above
85%. Therefore the MLR will not be at a level where employees at the
University will receive a refund.
b. Benefits Summary as prescribed by federal regulations
 Blue Cross Blue Shield is refining benefits summaries to meet federal
regulations (i.e., format).
 The value of benefits will have to be reported on W-2s beginning with those
issued in January, 2013. OU is required to show the aggregate cost of the
health plans.
 Human Resources staff will be meeting with our consultants from Segal to
discuss any further impacts of health care reform and how to best prepare
for regulations.
c. Women’s Health Issues
 For plan years after August 1 (for OU’s plans, this will be January 1), many
preventive services for women’s health will be provided without cost share
(i.e. birth control). Blue Cross Blue Shield will send communication
regarding this to employees prior to annual enrollment.
VII.
Tobacco Free Campuses
 Tobacco free campus was implemented July 1, 2012. We are striving to attain
100% compliance with the policy. An email was sent to all employees with
information regarding who to contact in Human Resources with concerns about
policy or compliance. HR will be working with OUPD; however, the goal is not to
generate revenue, but to work toward voluntary compliance with the policy.
 There are some issues to be addressed at HSC regarding compliance, including
boundaries and outside agencies located close to the campus.
VIII.
Updates from CHRO
 Julius reported to the committee that Barbara Abercrombie, Human Resources
Director at OU-Tulsa, has accepted a position as Associate Vice Chancellor of
Human Resources at the University of Arkansas.
IX.
Other Business
 There was no other business.
Meeting was adjourned at 2:20.