University of Oklahoma
EMPLOYMENT BENEFITS COMMITTEE
NEL 215 - Seminar
September 18, 2014
Present:
Committee Members:
Don Clothier
Tricia Rahal
Renda Passek
Terri Lunday
Will Wayne
Krista Pettersen
Mary Ann Pascucci
Debbie Copp
Jannie Porter
Vincent Leseney
Others:
Les Hoven
Jessica Cadotte
Angela Hawpe
Lindsay Mitchell
Breion Rollins
Meghan Stalling
Approval of minutes
Motion to approve August minutes by Wayne and second by Leseney. Approved with changes to page 1
by unanimous vote.
Changes to Bylaws
(Clothier) Changes in Committee Members must be approved by the President as well as the University
governance groups. Also would like to take a look at the current make-up of campus representatives
and possibly increase the number of representatives for HSC.
I will present a letter to the President and University governance groups to add Cameron as a
representative on the EBC. Committee membership will be kept on the agenda to discuss the member
representative numbers per campus in the future.
2015 Renewal
(Hawpe)
OU is not licensed at the University level to go self-funded on the HMO. The proposal is to continue to
self-fund the PPO, high deductible and Traditional Indemnity plans and remain fully insured on the
HMO. A 4.1% increase will be applied to the PPO and high deductible plans which includes the strategy
of building a reserve account over 7 years. The HMO was negotiated down from an 8.1% increase to
7.5%. We anticipate a migration from the HMO to the PPO as a result of the increase. Additional
changes to the contribution strategy include adding $12 a month to tier one PPO members.
In 2015, new regulations require pharmacy costs to be applied to an out-of-pocket max. As a result,
there will be a separate out-of-pocket max of $1000 Individual or $2000 Family for Pharmacy OPX for
PPO and HMO.
(Hoven) We are recommending a change to the employee contribution structure. Employees in Salary
Tier #1 with Employee Only PPO coverage would begin to contribute $12 per month. At other
institutions, the University and employees typically share the cost of medical insurance based upon an
80/20 or 75/25 split.
(Clothier) What would 20% of the PPO rate equate to on a monthly basis?
(Hawpe) At 20%, PPO members would contribute $98.54 per month as opposed to the recommended
changes of a $12 contribution. Regent’s items will need to be drafted as well as a recommendation from
EBC to be submitted to President Boren. The recommendation to remove the $50 health waiver and the
no tobacco use benefit will not be submitted.
(Wayne) Has there been any discussion on the expensive prescription drugs?
(Hawpe) Discussions on expensive prescription drugs will likely be in the future.
(Copp) I think if OU is going to be a tobacco free campus, we should have a tobacco surcharge.
(Porter) The issue would be enforcing it. I also don’t understand not recommending the removal of the
$50 waiver for medical.
(Hawpe) The removal would be a savings of $300-$400 thousand.
(Porter) I think it would be hard to add a $12 contribution to the lower tier but also give others with
good dependent coverage a $50 waived benefit credit.
Motion to add the elimination of the $50 waived benefit credit to EBC recommendation letter to
President Boren by Porter and second by Leseney. Approved by unanimous vote.
(Copp) Will the timing of the October Regents Agenda affect the renewal?
(Hawpe) Everything will still stay on schedule with open enrollment.
ACA Update
(Hawpe) We have developed guidelines to comply with the ACA which describe workforce management
rules for different types of employee groups. HSC will have a modified version of the memo. We have
already begun to speak to the governance groups across campus.
We would like to offer the high deductible plan to employees who cross the 30 hour threshold. The cost
of medical insurance coverage for employees who meet ACA requirements will be paid through the
fringe. It is critical that departments watch and track the hours worked for their temporary employees.
(Hoven) We are currently developing reports for tracking as well as trying to clarify the definition of a
temporary employee.
Wellness Update
(Mitchell) Fun Run set for September 27th. There are currently over 1600 registered for the 5K and 400
for the mile walk.
Flu shots have started at Goddard. There will be another opportunity in October with more clinics to be
added. Health Screenings are set as well.
The Move More challenge begins on September 29th and already has 180 participants registered.
Updates from Director
(Hoven) An RFP will be put out for a new benefits consulting group in January. We will be considering
options for new voluntary benefits as well as the possibility for identity theft protection.
(Porter) Do employees currently have the option to create a will as a benefit?
(Rollins) This benefit is offered through Magellan and will be offered during open enrollment.
Other business
(Rollins) The benefit fairs have been set for the middle of open enrollment this year. The dates are the
11th, 12th and 13th of November.
Next meeting 10/16/14
Adjourn
2:34pm