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Senate Report 21-02
Questions
1. What are the employee-friendly metrics used to determine our healthcare benefits?
HEALTHY
BOILER
2. How do the medical benefits provided by Purdue compare to those of other large local employers? It is
clear that healthcare spending is on the rise; however, many Purdue employees do not consider the
medical benefits here to be competitive.
3. How is HR helping to streamline and facilitate the process of understanding what we pay for and whatwe get for it? How can we help employees to make good healthcare choices? For example, anecdotal
reports suggest that the Healthcare Concierge may not be functioning well or consistently. This person
does not appear to be informed of tier 1 and tier 2 locations. Further, Castlight / Anthem Care&Cost is
not always up-to-date.
HEALTHY BOILER- Part of Total Rewards
Behavioral Health
Employee Assistance Program
Live Health Online
My Strength
Behavioral Health Counseling Financial Wellness
Retirement
Life Insurance
Health Savings Account
Voluntary Benefits
Physical Health
Medical, Rx, Dental and Vision
Health Clinics (PWL, PFW)
Rx Savings Solutions
ATI Onsite Program
Shoes for Crews Social
Wellr,ess
HB Challenges
Winter Recess
Cultural Centers
Work-L'fe I r,tegration
Leaves - Personal and Business
Care.com
Family Friendly Policies
Onsite Child Care
Professional Committees and Groups
11I1sI2021 I 3
Question 1
What are the employee-friendly metrics used to
determine our healthcare benefits?
Question 2
How do the medical benefits provided by Purdue
compare to those of other large local employers?
It is clear that healthcare spending is on the rise;
however, many Purdue employees do not
consider the medical benefits here to be
competitive.
2019 Higher Education Benchmark-Annual Premium
Al I Plans - I[) P
■!Em
• Em� An - O:m "l:!.rtic;
Source: 2019 Higher Education Benchmark, LHD Benefit Advisors
Purdue HD P
• Em A ual Contriburtion
• Emp� An - Con icm
36 institutions invited to participate
14 submitted validated information
13 additional public institutions
HEALTHY
BOILER
2019 Higher Education Benchmark- Annual Premium
Cost Information
Ave Mon11Jhlv E;mployee Co:ntri'ooSin,gle EE+Spoose
EE+ Clhiildjn!fllj
Family·
Ave 1Mon11Jhlv Employee Co:ntri'ooSin,gle EE+Spoose
EE+ Childjr-enl
Family·
Average !Monthly Prcemiu m l[Eqllli Sin,gle EE+Spouse
EE+ Childjn!f'IJ
Family·
l!�-
25,10001
,emplo-r,ees
n=5
$36,
$9.i.5 $&'9 $143
7_, .. 9.8%; 9.3%
10.2.%
$464 $969 $957
$1,400.
Source: 2019 Higher Education Benchmark, LHD Benefit Advisors
CDHP Plans
All U11ive1rS1ities
n = l.lJ
$63
$136 $112. $206
111.0%
$570
$�015, $906
Sl,5•68
IMidllleSt
n=8
$63,
SB6, SU'2 $206
U!i.3 12.4 ll.312.2
�6,:13 $1,096, $'991
$1,61B
HEALTHY
BOILER
2.'111
� Ptudue How Purdue Compares to
Benchmarks
HDHP:L HDHP2
:$17 $49 $5 s 0 f I rd. pr,emi
:Sas, Sm $82 mcost:sto
:$3:2 $;8, $27 �Sail1E!�
oompe iti
ve for-all ns $119 $2.4 $111
2...6% 0.8% 5,_9;6 1.3,96 2...6% 0.7% 2.3 S,_9;6 1.2%
$63® �68 Purdue average mta I premi. m
$.1., 19 $1.,281 msts.ar,e es:sfav:o:ra e
$l!.,B5 $1.,®2.l mimpa,-ed to benchmaTl
$1.,;923 $1.,733 average
HEALTHY
BOILER
2019 Higher Education Benchmark- Deductible
CDHP Plans
10,000-201'9 J>mrd u:e
How Purdue Compares to
25,000 .i'III Univermies !Midwest Benchmarks
e°'?lo'(ees
Plan Design lnform.atiion 111 =5 n = 10 n=S HDHPl HDHJ>l HDHPPlans
Deductible
In- 'enwork HDHP 1 is Consistent; HIDHP 2 is
Singte $2,050 $1,950 Sl,844 $2,000 $2,750 Less, Favorable
Family $4,100 $3,667 $3,688 $4,000 SS,'500
Out-of-Network H DHP 1 is Consistent; DHP2is
Singl.e $3;625 $3,000 $3,000 $3,500 S'S,000 Less, Favora•ble Family $7,2.50 $16,000 $6,000 $7,000 $10,000
Coi11surance·
In- enwork 80%/2.0'Yo 80%/20% 80'l(o/20%, 80%/.20% 75%/2'3% iCoruiS'lient
Out-of ,etwmk 60o/,/40% 60%/40% 60%/40% 60%/40% 55%/45'% icon.siSleint
Out-of..P,ock!et Maximum (inc
In- 'enwork H DHP 1 is Consistent; DHP2is
Singte $3)6()() $3,735 $3,250 $3,570 $5,250 Less. [email protected]
Familv $7.200 $7470 $6.500 $7,500 $10,500
Out-of-N!etwork
Singte $7,2.50 $6,02.1 $5,967 $8,000 s.10,000Less Favorable
Family $14,500 $12,043 Sll,9'33 $16,000 $20,000
Source: 2019 Higher Education Benchmark, LHD Benefit Advisors
Deductible
(single/family)
OOP (single/family)
EE Monthly
EE+SP Monthly
EE+CH Monthly
EF Monthly
EE Count
EE+SP Count
EE+CH Count
EF Count
EE Average
National Benchmark Regional Benchmark Indiana Benchmark
Plan 1 - HSA Plan 2 - PPO
$3,000/$6,000 $2,000/$4,500
$5,000/$10,000 $6,000/$12,000
$158.00 $210.00
$494.00 $651.00
$417.00 $547.00
$718.00 $926.00
3,739 employers 8,145 Employers
Plan 1 - HSA Plan 2 - PPO
$3,000/$6,000 $2,000/$4,000
$5,000/$10,000 $5,500/$11,850
$147.00 $199.00
$469.00 $617.00
$394.00 $514.00
$665.00 $847.00
1,320 Employers 2,105 Employers
Plan 1 - HSA Plan 2 - PPO
$3,000/$6,000 $2,500/$5,000
$5,000/$10,000 $5,500/$11,000
$161.00 $197.00
$492.00 $608.00
$417.00 $518.00
$721.00 $881.00
339 Employers 282 Employers
Tier 1 Tier 2
$1,450/$2,900 $2,000/$4,000
$2,250/$4,500 $3,250/$6,500
$22.63 $76.94
$118.24 $199.10
$41.41 $129.49
$163.52 $270.18
$55.94 $159.60
Purdue
Plan 1 - HSA
$121.15
Local Employer 1 Local Employer 2
Deductible (single/family)
OOP (single/family)
EE Monthly
EE+SP Monthly
EE+CH Monthly
EF Monthly
EE Count
EE+SP Count
EE+CH Count
EF Count
EE Average
Plan 1 - HSA Plan 2 - PPO
$3,000/$6,000 $750/$2,250
$3,000/$6,000 $3,000/$6,000
$69.33 $114.83
$186.33 $292.50
$134.33 $221.00
$277.33 $403.00
12 19
1 1
2 5
4 3
$126.12 $171.01
Plan 1 - PPO Plan 2 - HSA Plan 3 - HSA
$1,500/$3,000 $3,000/$9,000 $4,000/$8,000
$3,500/$7,500 $6,500/$13,000 $5,000/$10,000
$140.00 $100.00 $45.00
$431.00 $330.00 $175.00
$353.00 $270.00 $130.00
$560.00 $430.00 $220.00
296 127 85
76 13 9
74 48 15
66 22 25
$268.12 $187.67 $95.90
Tier 1 Tier 2
$1,450/$2,900 $2,000/$4,000
$2,250/$4,500 $3,250/$6,500
$22.63 $76.94
$118.24 $199.10
$41.41 $129.49
$163.52 $270.18
1209 1354
268 662
340 581
265 934
$55.94 $159.60
$121.15
Plan 1 - HSA
Purdue
Tier 1 Tier 2
$1,450/$2,900 $2,000/$4,000
$2,250/$4,500 $3,250/$6,500
$22.63 $76.94
$118.24 $199.10
$41.41 $129.49
$163.52 $270.18
1209 1354
268 662
340 581
265 934
$55.94 $159.60
$121.15
Plan 1 - HSA
PurdueLocal Employer 3 Local Employer 4
Plan 1 - PPO Plan 2 - PPO Plan 3 - PPO Plan 3 - HSA Plan 1 - PPO Plan 2 - HSA
Deductible (single/family) $500/$1,000 $1,000/$3,000 $4,500/$9,000 $6,250/$12,500 $1,200/$2,700 $2,300/$4,700
OOP (single/family) $3,000/$6,000 $4,000/$12,000 $6,550/$13,100 $6,250/$12,500 $4,000/$8,100 $4,600/$9,000
EE Monthly
EE+SP Monthly
EE+CH Monthly Varies
EF Monthly
Non- Non-
Tobacco Tobacco Tobacco Tobacco
$160.33 $226.98 $114.83 $181.48
$340.17 $406.81 $225.33 $291.98
$264.33 $330.98 $177.67 $244.31
$411.67 $478.31 $260.00 $326.65
EE Count
EE+SP Count
EE+CH Count 26 23 85 113 Enrollment Not Provided
EF Count
EE Average $223.00 $492.00 $650.00 $246.00
Healthcare Expenditures -Overall 2016-2020
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Tota ll Actual Combined (ER & EE) Expenses vs Total Actual At PwC Published
Trend (PEPY)
6.2%
6.8% 5.7:%
5.5%
1.0% 1 .0% 1.0%
0.0%
2016 2017 2018 2019 2020 Adj
- Total Healthcare Cost - Totcll Healthcare Cost at PwC Actual Trend - Total Healthcare Cost YOY Trend - PWC YOY Trend
HEALTHY
BOILER
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
If Purdue followed national trend, employees and the university
would be spending $3k more per employee per year on healthcare.
HEALTHY
BOILER
Strategy Plan Cost/ Savings Employee Cost/ Savings
No Premium increase -Moved HSA Purdue contribution to $200/$400 & Expanding current incentive menu of health screenings
Healthy Boiler Portal Upgrade -Increase Retiree premiums {5%) - -Dental Carrier Change & Reduction in premiums - -Reduction in ASO fees - VSP vision carrier -Additional direct agreement - Colonoscopy - -Additional direct agreement - Diabetes Management - -
Not Recommended for 2022. Consider in future years:
• Increase in Working Spouse Premium
• Deductible and Out of Pocket increases
• Cost share on preventive dental
• Cost share on vision
• Premium increase for active employees and long-term disability members
2021 Open Enrollment Survey
Terrible 1 1)
2
3
4
5
6
Excellent fl)
:1]20 Mean:
.J]19 Mean:
6'.1%
7.11%
9.4%
12J]%
_4-%
23 ·� - 0
9.11%1
4.5
4.57
J'ooExpensi e (1) 11-11%1
� 11-5%1
3 13_9%1
4 24_ %
5 17_7%
6 13,_9%1
... ••1Grea Vaine (7) 7_8%
3_99
3_99
3_8 '
�one- ampk t-te · •. frn .. nd thes1e mean \; alue 1nidpomt aitp<_OOl_
Source: 2021 Open Enrollment Benefit Survey
Not Comprehensive ( 1) 7 -3 ° U nfailr ( 1) 7 _ 5%
2. 7-4% 6_5%
3 8,_6% 110J)%
4 21-8% 4 3_9%
S R7% 5 117_4%
6 2 '_9% 6, .0_8%
C.omprehensnre (7) Fain (1) 113 J)%
4-46
4_51
ignificantly ah O\ e or below the ca�e s
4.55*
4.48,*
4.4 .*
HEALTHY
BOILER
Question 3
How is HR helping to streamline and facilitate the process of
understanding what we pay for and what we get for it? How can
we help employees to make good healthcare choices? For
example , anecdotal reports suggest that the Healthcare
Concierge may not be functioning well or consistently. This
person does not appear to be informed of tier 1 and tier 2 locations. Further, Castlight / Anthem Care & Cost is not alw ys
up-to-date.
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THANKVOU