Agenda Item No. V. B. 1.
Washburn University Board of Regents
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SUBJECT: University Health Plan Renewal
The University=s Health Programs plan year with Blue Cross Blue Shield of Kansas is from November 1 to November 1 each year. For the first time in many years, there is no need for any increase in premiums. Our rates are a direct result of the changes we implemented last year, 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 two options B 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:
Current retail drug costs for Base Plan are $5 generic/$30 brand-name co-pay, or 30%, whichever is greater. Buy-Up plan retail drug costs are $5 generic/$25 brand-name or 30% whichever is greater. The 30% created an undue burden for many employees; therefore, it is recommended the University utilize a formulary (preferred drug) option. The Base Plan drug costs would be $5 generic/$30 preferred brand/$60 non-preferred brand; Buy-Up drug costs would be $5 generic/$25 preferred brand/$50 non-preferred brand.
None. The amount budgeted is adequate to fund the Health Plan at the current rates.
President Farley recommends Board of Regents approval to renew the University=s Health Plan.
(date) Jerry B. Farley, President