Agenda Item No.



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, 2000. Attachment 1 is a summary sheet and comparison of the proposed rates of the three plans; Attachment 2 shows the estimated costs for FY 2001; 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, all classes of premiums are increasing (from 6.0% to 6.8%). This does not include the MER (over 65) categories. The MER premiums are paid totally by the participants, and are increasing from 8.3% to 10.9% in Plan I and II, and decreasing .5% in Plan III.





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 $43,000.









FINANCIAL IMPLICATIONS:





The estimated FY 2001 costs are $2,275,284 and the FY 2001 appropriations are $2,388,000.









RECOMMENDATION:





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







________________________ _______________________________________



(date) Jerry B. Farley, President







Washburn University

Review of Health Plan Premium Comparison

11-1-99 11-1-00 Difference %
Plan I Shared Pay Rates Rates
Single: Single Rates $291.05 $310.96 $19.91 6.8
Employer (WU Pays) 272.04 289.83 17.79 6.5
Net Cost to Employee $19.01 $21.13 $2.12 1.1
Family: Family Rates $747.79 $795.10 $47.31 6.3
Employer (WU Pays) 272.04 289.83 17.79 6.5
Net Cost to Employee (1) $475.75 $505.27 $29.52 6.2





11-1-99 11-1-00 Difference %
Plan II Comprehensive Rates Rates
Single: Single Rates $272.04 $289.83 $17.79 6.5
Employer (WU Pays) 272.04 289.83 17.79 6.5
Net Cost to Employee 0 0 0
Family: Family Rates $693.90 $735.48 $41.58 6.0
Employer (WU Pays) 272.04 289.83 17.79 6.5
Net Cost to Employee (1) $421.86 $445.65 $23.79 5.6




11-1-99 11-1-00 Difference %
Plan III Blue Select Rates Rates
Single: Single Rates $242.41 $258.89 $16.48 6.8
Employer (WU Pays) 272.04 289.83 17.79 6.5
Net Cost to Employee(2) ($29.63) ($30.94) ($1.31) 4.4
Family: Family Rates $605.49 $642.58 $37.09 6.1
Employer (WU Pays) 272.04 289.83 17.79 6.5
Net Cost to Employee (1) $333.45 $352.75 $19.30 5.8


(1) Family rates based upon annual salary over $43,000, where total premium is paid by employee.

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



Washburn University

Estimated FY 2000 Health Premium Costs

Based on 11-1-00 Rates





(3) Basic Data:

a) BCBS reports 666 contracts of which 470 were single and 196 family

b) These participants elected the following plans:

Single Family

Plan I 208 76 39%
Plan II 92 20% 17 9%
Plan III 170 36% 103 52%
TOTALS 470 100% 196 100%


c) The University pays a portion of the family plan for employees making

less than $43,000





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 00



July through September (estimated) $ 540,652

October through June (estimated) 1,734,632

Estimated total Costs FY 00 $2,275,284

FY 01 EBCF Budget: $2,388,000



Difference $ 112,716

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 $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 $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 $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 $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 $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 $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 $242.41 $605.49 $605.49 $605.49 $605.49 $605.49 $605.49
University contribution to
Medical Expense Account $29.63
Total University $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 $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 $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



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