Transcript Slide 1

Saint Mary’s College
Employee Benefits Advisory Committee
(EBAC)
December 2013 Meeting
Fall #3
December 18, 2013
EBAC Meeting – Fall 2013 #3
Agenda
1.
2.
3.
4.
5.
6.
Welcome / Introductions – EBAC Update
Review Tuition Remission/Exchange Proposal
Initial Open Enrollment Results
Discussion of Renewal and OE Decision Process
2014 EBAC Initiative
Timeframe and Schedule for 2014 Process
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EBAC Meeting – Fall 2013 #3
The Employee Benefits Advisory Committee (EBAC) is
established as a standing committee of the College to assist
and advise the Vice President for Finance in shaping and
funding the employee benefits program offered by Saint
Mary’s College of California and to help assure that
individual benefits plans are being managed in the best
interests of program participants and of the College.
The Saint Mary’s College Employee Benefits Program includes
health and welfare plans, retirement plans and other
benefits plans and programs offered by the College as well
as the consideration of other employee benefits plans not
yet offered by the College.
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EBAC Meeting – Fall 2013 #3
Tuition Remission / Exchange Programs
Should the maximum ages for each program be
aligned?
TEP is to age 25 while Remission is to age 21
Tax implication for dependents at age 24
The following table demonstrates how other
peer institutions are handling this
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EBAC Meeting – Fall 2013 #3
Survey of 16 peer organizations:
Maximum Age
# Schools
Percentage
No age limit
7
38%
26 age limit
4
25%
25 age limit
3
19%
23 age limit
1
6.5%
21 age limit
1 (SMC)
6.5%
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Initial Open Enrollment Results•
Enrollment migration indications
•
Flex Plan Results
- run-out vs. rollover
- bike benefits
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Discussion of Open Enrollment Decision Process
Context:
•
External market issues/forces
•
SMC specific issues
•
Fiscal Realities
•
Compressed timeframe
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2014 Carrier / Vendor Renewal
Carrier
Initial Renewal
Benu Aggregate
Final Renewal
18.64%; 14.4%; 13.2%
UHC
Notes
Weighted by the Kaiser and UHC renewals
w/ Benu Adjustment
HSA
27% ; 23.9%
20.40%
HMO
37.2% ; 29%; 22.5%
19.30%
Kaiser
5.69%
9.30%
This is rolled into the Benu renewal
0.00%
6.25%
0.00%
0.00%
6.25%
0.00%
Offering a 2 year rate guarantee
0.00%
0.00%
0.00%
0.00%
Renewed with no change for one year
6.00%
0.00%
Adjusted down to no change for 2 years
This is rolled into the Benu renewal
Delta Dental
PPO
DHMO
VSP
Offering a 2 year rate guarantee
Offering a 2 year rate guarantee
UNUM
Life / AD&D
LTD
MHN (EAP)
Overall this represents a $1 mil increase, or 11.2%
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Consider plan changes:
Plan
Current Benefit
Option ONE
Option TWO
HMO
Office Visit Copay $20
$25
No Change
HMO
Hospital Copay $250
No Change
$500
10 / 30
10 / 30
HMO &
HSA-PPO
Rx Copay –
$10 generic/$25 brand
HSA-PPO
Deductible $1500 in/$3500 out
Overall Estimated Savings:
$2,000 / $4000
-1.43%
$2000 / $4000
-1.92%
Detailed plan matrix attached
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Basic Tenets - Contribution Strategy:
•
Employee choice of Kaiser / non-Kaiser
•
Maintain a ‘Low/no-cost’ plan
•
Reflect cost difference
•
Stay within the target budget
•
Ease of communication and administration
•
Support coverage for dependents
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The final recommendations made were:
•
No change in benefit plans
<minimize disruption>
•
“Normalize” or re-balance contribution the
college’s contribution percentages
<move toward ‘fairness’ and equality>
•
SMC contribution would increase by 8%
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Contribution History
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Feedback / Perceptions / Issues:
•
Lack of Transparency?
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Too much, too fast
•
Enhanced communication process
•
What are peer institutions doing ?
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2014 EBAC Initiative:
A re-examination of what and how Saint Mary’s
College provides their employees with
employee benefits; the vendors, the offerings,
the budget and the competitive needs of the
community.
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EBAC Initiative:
1.
2.
3.
4.
5.
Re-Consider the basic tenets
Challenges and unknowns from the ACA
Wellness as a integral part of the program
Address women’s health/abortion issue
Other topics…….
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Basic Tenets - Contribution Strategy:
•
Employee choice of Kaiser / non-Kaiser
•
Maintain a ‘Low/no-cost’ plan
•
Reflect cost difference
•
Stay within the target budget
•
Ease of communication and administration
•
Support coverage for dependents
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Timeframe and Schedule for 2014 Process
• Frequency of EBAC Meetings
• Public Forum Process
• Leadership buy in
• Define deliverables
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Other topics for the future that need to be
untabled:
•
•
•
•
•
Survey of peer institutions
Retirement Benefits Sub-Committee
Back-up Dependent Care
Disability Buy-Up options
Other topics….
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Thank you and have a great holiday !
See you in the new year !
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