SUBJECT: University Health Plan Renewal

DESCRIPTION:

The University's Health Programs plan year with Blue Cross Blue Shield of Kansas is from November 1 to November 1 each year. For a second year in a row, there is no need for any increase in premiums. Our rates are a direct result of the changes we have implemented over the last two years, as well as the usage our group has experienced over this rating period. The University will continue a four tier premium schedule which, in essence, provides income adjusted family coverage based upon salary to assist lower paid staff afford family medical coverage. The University will continue to offer a base option and a buy-up option.

The Benefits Committee, along with the Consultant, has reviewed the renewal information from Blue Cross/Blue Shield, and is recommending one minor change to the existing coverage:

The current lifetime maximum is $2,000,000 and the out-patient lab and x-ray costs are covered up to $300. The new lifetime maximum will be $5,000,000 and the out-patient lab and x-ray costs will be covered to $500.

FINANCIAL IMPLICATIONS:

None. The amount budgeted is adequate to fund the Health Plan at the current rates.

RECOMMENDATION:

President Farley recommends Board of Regents approval to renew the University's Health Plan.

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(date) Jerry B. Farley, President