AUGUSTANA BENEFITS

COMMITTEESpring 2012

Campus Discussions

THE GOOD NEWS… 18 months of self-insured experience

Better service & vendor relationship Plan performance better than estimated 100% Wellness coverage

Increase in wellness visits Increase in flu shots & wellness testing Should create early intervention & decreased costs to

the plan Plan participants continue to be good

consumers Generic Incentive Program In-network providers utilized Referral program for specialized care

Addition of Voluntary Dental Benefit

ON THE HORIZON… Unknown effects of

healthcare reform Changes to our

participant profiles Effects from increased

wellness activities and spending

Changes in the Quad City Health Care profile.

ROLE OF THE BENEFITS COMMITTEE Evaluate performance of the plan

and suggest changes Listen to campus community &

suggest changes. Look for the best return for the

college’s investment Representatives

Faculty: Tenured & non-tenuredAdministration: HR & non-HRStaff: Dining, Facilities, Support

TOPICS WE WANT TO DISCUSS

Cost of single vs. family insurance

Thoughts on Wellness as a way to control costs.

Possible plan enhancementsVoluntary Life buy-up65+ Health Plan

Your feedback on current plan and possible changes.

COSTS AT OUR PEER INSTITUTIONS

Family

Employee +1

Employee

0 100200300400500600700

600

425

40

415

276

80

400

261

80

IA/IL Small PrivatesKaiser ReportAugustana

$1000 deductible plansKaiser report includes em-ployers with 200+ employ-ees

COST AT OUR PEER INSTITUTIONS

Family Employee +1 Employee 0

100

200

300

400

500

600

700600

425

40

403

262

108

504

393

106

513475

50

329280

69

403

262

108

606

416

48

AugustanaWittenburgGustavusIL WesleyanLutherOH WesleyanUniv. of Puget Sound

NO EASY ANSWERS Prospect of raising cost of single

coverageLarger impact on those at lower end of

earnings scaleMay cause those with double coverage to

drop the Augustana Plan.May be unaffordable to someWould allow us to divert premiums to assist

in family coverage. Thoughts?

NO EASY ANSWERS Prospect of lowering cost of family

coverageMay help with recruitment – particularly of

faculty members.May allow others to join the plan.Would require higher cost for single

coverage.Moves the group of unhappy people

Thoughts?

NO EASY ANSWERS Wellness Incentive Pricing

Should there be different pricing for employees that participate in some level of wellness activity?

Wellness screeningsWeight loss or exercise/fitness participationOther things that would incent healthy

choices? Thoughts?

NO EASY ANSWERS Tiered Benefits

Different pricing based on earningsOne amount if you earn less than $X/yearHigher amount if you earn more than

$X/yearDoesn’t take into account overall family

earningsMay adversely affect those near the “break

point”

Thoughts?

NO EASY ANSWERS 2nd Alternative within our plan

Lower cost coverage with lower benefits?Higher deductible ($5,000 per family) with

lower priceSmaller or limited pool of providersHealth Savings Account model

Thoughts?

OTHER BENEFITS IDEAS Voluntary “buy-up” of life insurance

Currently 1.5 times your annual salaryBuy the amount you want without

underwritingTake advantage of large group discount

Additional health care choice for active employees age 65+Would act as a Medicare supplementEmployees could keep this coverage at their

own expense when they leave.

OTHER IDEAS OR QUESTIONS?

Thanks for your time and input!