AGENDA ITEM

Washburn University Board of Regents









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. The University has received the new renewal rates to become effective November 1, 1999. Attachment 1 is a summary sheet and comparison of the proposed rates of the three plans; Attachment 2 shows the estimated costs for FY 2000; Attachment 3 is a summary of premium rates by Type Plan and the premium matrix for the University to pay part of the family premium.





Based upon our utilization, the range of premium increases for the three plans are between 10.5% to 15.2% including the Medicare Exclusion Rider (over 65) categories. The Medical Exclusion Rider premiums are paid totally by the participants.





The renewal rates are based upon continuation of the three previously approved health plans (I Shared Pay, II Comprehensive, and III Blue Select). Premium costs are based upon continuation of the University paying the single premium at the Plan II rate, and a portion of the family health premiums for those employees with annual salaries less than $41,000.











FINANCIAL IMPLICATIONS:





The estimated FY 2000 costs are $1,884,906 and the FY 2000 budget are $1,922,000.









RECOMMENDATION:





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









__________________ _______________________

(date) Jerry B. Farley, President



Attachment 1

Washburn University

Review of Health Plan Premium Comparison

11-1-98 11-1-99 Difference %
Plan I Shared Pay Rates Rates
Single: Single Rates $252.71 $291.05 $38.34 15.2
Employer (WU Pays) 236.60 272.04 35.44 15.0
Net Cost to Employee $16.11 $19.01 $2.90 18.0
Family: Family Rates $656.93 $747.79 $90.86 13.8
Employer (WU Pays) 236.60 272.04 35.44 15.0
Net Cost to Employee (1) $420.33 $475.75 $55.42 13.2


11-1-98 11-1-99 Difference %
Plan II Comprehensive Rates Rates
Single: Single Rates $236.60 $272.04 $35.44 15.0
Employer (WU Pays) 236.60 272.04 35.44 15.0
Net Cost to Employee 0 0 0
Family: Family Rates $611.13 $693.90 $82.77 13.5
Employer (WU Pays) 236.60 272.04 35.44 15.0
Net Cost to Employee (1) $374.53 $421.86 $47.33 12.6


11-1-98 11-1-99 Difference %
Plan III Blue Select Rates Rates
Single: Single Rates $210.73 $242.41 $31.68 15.0
Employer (WU Pays) 236.60 272.04 35.44 15.0
Net Cost to Employee(2) ($25.87) ($29.63) ($3.76) 14.5
Family: Family Rates $534.08 $605.49 $71.41 13.4
Employer (WU Pays) 236.60 272.04 35.44 15.0
Net Cost to Employee (1) $297.48 $333.45 $35.97 12.1


(1) Family rates based upon annual salary over $41,000, where total premium is paid by employee.

(2) WU contributes the difference to the employee's Section 125 plan.







Attachment 2





Washburn UniversityEstimated FY 2000 Health Premium Costs
Based on 11-1-99 Rates



(3) Basic Data:

a) BCBS reports 665 contracts of which 487 were single and 178 family

b) These participants elected the following plans:

Single Family

Plan I 223 79 44%
Plan II 99 20% 18 10%
Plan III 165 34% 81 46%
TOTALS 100% 100%


c) Effective 11-1-97 the University began paying a part of the family plan for employees making

less than $41,000





II. Estimated Costs:

a) Estimated costs July 1 through September 30 (3 months)

October 1 through June 30 (9 months)



b) Assume plan election will be approximately the same as in the past



c) Assume cost estimates for family benefit will be similar to projections for FY 99



July through September (estimated) $ 462,313

October through June (estimated) 1,422,593

Estimated total Costs FY 00 $1,884,906

    Annual FTE Annual FTE Annual FTE Annual FTE Annual FTE Annual FTE
    Salary Salary Salary Salary Salary Salary
    >$41,000 $35,001-$41,000 $29,001-$35,000 $23,001-$29,000 $17,001-$23,000 < $17,000
    Family Premium Family Premium Family Premium Family Premium Family Premium Family Premium
  Single 0%paid by Univ. 10%paid by Univ. 20%paid by Univ. 30%paid by Univ. 40%paid by Univ. 50%paid by Univ.
Plan 1 - Shared Pay              
    Annual FTE Annual FTE Annual FTE Annual FTE Annual FTE Annual FTE
    Salary Salary Salary Salary Salary Salary
    >$41,000 $35,001-$41,000 $29,001-$35,000 $23,001-$29,000 $17,001-$23,000 < $17,000
    Family Premium Family Premium Family Premium Family Premium Family Premium Family Premium
  Single 0%paid by Univ. 10%paid by Univ. 20%paid by Univ. 30%paid by Univ. 40%paid by Univ. 50%paid by Univ.
Plan 1 - Shared Pay              
               
Full Time Employee Pays $19.01 $475.75 $433.56 $391.38 $349.19 $307.01 $264.82
University Pays $272.04 $272.04 $314.23 $356.41 $398.60 $440.78 $482.97
Total Monthly Premium Cost $291.05 $747.79 $747.79 $747.79 $747.79 $747.79 $747.79
               
.75 FTE Employee Pays $87.02 $543.76 $501.57 $459.39 $417.20 $375.02 $332.83
University Pays $204.03 $204.03 $246.22 $288.40 $330.59 $372.77 $414.96
Total Monthly Premium Cost $291.05 $747.79 $747.79 $747.79 $747.79 $747.79 $747.79
               
.5 FTE Employee Pays $155.03 $611.77 $569.58 $527.40 $485.21 $443.03 $400.84
University Pays $136.02 $136.02 $178.21 $220.39 $262.58 $304.76 $346.95
Total Monthly Premium Cost $291.05 $747.79 $747.79 $747.79 $747.79 $747.79 $747.79
               
Plan II - Comprehensive              
               
Full Time Employee Pays $0.00 $421.86 $379.67 $337.49 $295.30 $253.12 $210.93
University Pays $272.04 $272.04 $314.23 $356.41 $398.60 $440.78 $482.97
Total Monthly Premium Cost $272.04 $693.90 $693.90 $693.90 $693.90 $693.90 $693.90
               
.75 FTE Employee Pays $68.01 $489.87 $447.68 $405.50 $363.31 $321.13 $278.94
University Pays $204.03 $204.03 $246.22 $288.40 $330.59 $372.77 $414.96
Total Monthly Premium Cost $272.04 $693.90 $693.90 $693.90 $693.90 $693.90 $693.90
               
.5 FTE Employee Pays $136.02 $557.88 $515.69 $473.51 $431.32 $389.14 $346.95
University Pays $136.02 $136.02 $178.21 $220.39 $262.58 $304.76 $346.95
Total Monthly Premium Cost $272.04 $693.90 $693.90 $693.90 $693.90 $693.90 $693.90
               
Plan III -Blue Select              
               
Full Time Employee Pays $0.00 $333.45 $291.26 $249.08 $206.89 $164.71 $122.52
University Pays $242.41 $272.04 $314.23 $356.41 $398.60 $440.78 $482.97
Total Monthly Premium Cost $242.41 $605.49 $605.49 $605.49 $605.49 $605.49 $605.49
University contribution to              
Medical Expense Account $29.63            
Total University Contribution $272.04            
               
.75 FTE Employee Pays $38.38 $401.46 $359.27 $317.09 $274.90 $232.72 $190.53
University Pays $204.03 $204.03 $246.22 $288.40 $330.59 $372.77 $414.96
Total Monthly Premium Cost $242.41 $605.49 $605.49 $605.49 $605.49 $605.49 $605.49
               
.5 FTE Employee Pays $106.39 $469.47 $427.28 $385.10 $342.91 $300.73 $258.54
University Pays $136.02 $136.02 $178.21 $220.39 $262.58 $304.76 $346.95
Total Monthly Premium Cost $242.41 $605.49 $605.49 $605.49 $605.49 $605.49 $605.49
               
*In the event that more than one person in a family is employed by the University and each is an eligible employee, the University will pay the
equivalent of the number of single premium costs, pro-rated, based on FTE of apointment and salary, of the Comprehensive Major Medical Program


Last Updated on 8/31/99
By Deborah Birney
Email: zzbirney@washburn.edu


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