University of Oklahoma
EMPLOYMENT BENEFITS COMMITTEE
Wagner Hall Conference Room 180
May 22, 2014
Present:
Committee Members:
Don Clothier – Chair
Will Wayne
David Vishanoff
Karen Rupp-Serrano
Debbie Copp
Krista Pettersen
Terri Lunday
Jannie Porter
Others:
Les Hoven
Lindsay Mitchell
Ruth Donahue (Segal)
Angela Hawpe
Breion Rollins
Meghan Stallings (Cameron)
Kevin Breslin (Segal)
Suzanne Harrell
Mary Ann Pascucci
Renda Passek
These minutes attempt to convey the significant issues discussed in the meeting.
Chair Don Clothier opened the meeting at 1:30pm.
1. Approval of minutes
Motion to approve April minutes by Don and all voted in favor.
2. 2015 Renewal and Strategic Plan update
(Hawpe)
Preliminary renewal page 3 of the presentation referred to.
5.4% increase in PPO and overall 4.7% in HMO and Indemnity.
*Note that these renewals are prior to negotiations and do not include OU being selffunded.
Page 5 includes assumptions and OU is below the national trend in relation to medical.
(Kevin) Also, we will be working toward moving the prescription drug cost down.
(Hoven) What happens when the HMO is lower than anticipated?
(Hawpe) In the past, we had credits but it still may not be enough for credits.
(Segal) Keep in mind the premium could still be more than the PPO even though the % was
lower.
(Kevin)
Page 7 of presentation referred to.
Self-Funded has some different cost: the ASO Fee and the Stop Loss Premium.
However, going self-funded would result in roughly a 6 million dollar savings.
(Hawpe) Keep in mind, the 6 million will be used towards reserves and claims.
(Clothier) How do the fees compare to what we are currently paying?
(Hawpe) It would be approximately a $1M reduction in payments. Next month we should have
a better idea and closer to what it will look like.
(Copp) What is Stop Loss insurance?
(Hawpe) It is a form of insurance that limits the amount of risk to the university. Essentially, it is
insurance on the insurance plan. There are two kinds of stop loss, individual and aggregate.
(Hoven)
Strategic Plan
Executive Steering committee meeting set for June 3rd and we plan to test the models we have
been discussing.
OU must use the reserves appropriately for a self-funded arrangement to work effectively and
avoid repeating negative past experiences.
Part of the strategic plan is to simplify the health plan while ensuring affordability and
maintaining a high quality of care, and adequate choice.
Plan to present a strategic plan document to this group soon.
In regards to contribution strategy, it will be proposed to phase out contribution tiers over the
next few years in order to maintain a competitive position in the market.
The committee is evaluating options for more affordable dependent coverage and the
possibility of having on-site clinics on each campus.
(Wayne) Faculty/Staff currently comprise approximately 20% of Goddard’s business.
(Copp) Would the clinic be separate from Goddard?
(Hawpe) As of now that is undetermined.
(Vishanoff) Do we currently attempt direct negotiations with providers, versus going through
our insurer?
(Wayne) Norman functions under NPHO so might be difficult to manage, but easier in Norman
to work in a group.
(Hawpe) We do meet with providers but haven’t gone to specific surgery centers etc.
(Copp) We have often taken care of the lower paid but it feels like the folks in the middle have
not seen any breaks in the process.
(Passek) Could the onsite clinic also benefit retirees?
(Wayne) Possibly, although that wouldn’t be the goal of the clinic.
(Clothier) That is still to be determined.
(Hawpe) Thoughts on Co-Pay based PPO.
There would still be some coinsurance, but not for everyday services, it would apply for high
cost services.
Plan seems reasonable as long as you can determine what your out of pocket is at point of
service and knowing the coinsurance.
Carry over for FSA?
When it was discussed last year there were widely varying opinions, so it needs to be revisited
and a decision for 2015 made.
As part of the strategic plan there will still be a high-deductible plan, but with better incentives.
There is a possibility a Health Savings Account (HSA) would replace the current Healthcare
Reimbursement Arrangement (HRA).
(Vishanoff) My past experience with HSA is good and perception good.
(Hawpe) There is interest in eliminating the $50/month credit for those with proof of other
coverage and implementation of a $25 premium incentive for non-tobacco users.
(Passek) When preparing examples about the different insurances, can the cost of no insurance
be included?
(Hawpe) The timeline is: 4/14-6/14 negotiate renewal, ASO and Stop Loss, plan options and
structures, cash flow account. 6/14-9/14 if self-funded, implement, confirm appeals, premium
equivalent rates, and plan documents. 9/14 meeting. 1/15 new plan year begins.
(Vishanoff) Might look into Health Expense Sharing Plan. This is what I use instead of OU plan.
3. ACA Update
(Hawpe)
Working on guidelines for tracking and reporting, and a local consultant is helping with getting
the processes in place.
The ACA team is working with the Consultant to draft a communication and hopes it will go out
next week. This will convey what is going on and possibly reveal groups not known about.
In 2015, large employers are allowed up to a 30% failure rate, but this rate decreases to 5% the
following year.
4. Student Health Plan Update
(Hawpe)
Rates and plans will remain the same for 2015.
Renewal complete and materials should be out within the next two weeks.
5. Wellness Update
(Mitchell)
Met with Full Plate Living representative, along with Amy and Jimmy from Fit+Rec and Josh and
Lee from OU-Tulsa, to look at the possibility of offering their online courses. We would
incentivize the program by reimbursing employees at least 50% of the cost, similar to Weight
Watchers program.
We provided a fun activity for Staff Week at each campus. A total of 224 employees
participated.
The next activity or challenge is getting ready to start June 2nd, HealthySooners Scavenger
Hunt. This is an eight week activity.
Last meeting it was mentioned that a pocket card with questions to ask your doctor might be
helpful for employees. Examples that can be developed and distributed were mentioned and
available to look at.
6. Updates from Director
(Hoven)
Committee members are encouraged to continue offering input and discussion, as well as share
any comments with him or Angela, prior to them sending out info.
A new HR Website expected to roll out next month.
The RPMC committee meets quarterly and continues to review financial decisions to ensure OU
employees have the best plans possible. The committee is working to educate employees
towards making better retirement and benefits choices.
7. Other business
Meghan from Cameron University was introduced and someone from Cameron will join
committee on a permanent basis, dependent on by-laws.
Next meeting set for June 26th
Meeting adjourned at 2:55pm