OS Council reviews ideas on how to cut the cost of benefits

By John Reed, Media Relations

The OS Council weighed several medical plan cost containment proposals at its May meeting as the university system tries to contain the cost of benefits.

USNH has asked for cost-savings ideas in order to limit the growth in employer medical costs to under 10 percent a year.

This goal comes from a March 2001 motion of the USNH Trustees’ Financial Affairs Committee, according to Joan Tambling, director of USNH Human Resources. The committee set a goal that medical benefit costs should grow by no more than 7.5 percent in calendar year 2004, and no more than 5 percent in calendar year 2005.

Taking into account an expected 15 percent increase in overall benefit costs in New Hampshire, $2.4 million is the amount USNH estimates it would have to cut costs from the projected 15 percent rate in order to achieve a growth of no more than an average of 6.2 percent (the 7.5 percent and the 5 percent combined) in fiscal year 2005, Tambling explained.

The council endorsed increasing co-payments for primary care physician visits from $10 to $15, for specialists visits from $10 to either $15 or $20, and the prescription drug structure from $5/$15/$35 to $7/$18/$35.

Council members also supported increases in the co-pays for in-patient and out-patient hospitalization, which currently are zero. An increase of up to $200 for in-patient and up to $50 for out-patient with a $250 cap was endorsed.

The council did not approve an increase in emergency room visit co-payments from $75 to $100.

The council also supported the proposed change to the long-term disabilities benefit. Under this change, UNH will continue to pay its contribution to the employee’s retirement plan while the employee is on long-term disability but not the employee’s contribution.
These changes must be approved by the System Personnel Policy Councils for operating and PAT/EE staff, and the USNH Board of Trustees. If approved, the changes would go into effect January 2005.

Proposed changes to the retirement medical plan were deemed to be too undeveloped to keep on the table for this year; further discussion of them will take place in the fall. In addition, discussion about the Family Friendly policy proposals was tabled until the fall. The council determined that more time is needed to explore and propose alternative options for policy proposals.

All proposals discussed are available on the OS Council Web site, http://www.unh.edu/os-council/index.html. The council strongly encourages all constituents to email their representatives with questions, concerns, or input.

In other business, the council:

• Reviewed revisions to the UNH Sexual Harassment policies. Council members were informed of various methods to report sexual harassment on campus, including online at http://reportit.unh.edu/. This Web site provides an anonymous way to report sexual harassment on campus as well educational material regarding sexual harassment issues. For more information regarding UNH sexual harassment policies the council encourages constituents to visit the UNH discrimination and discriminatory harassment policy Web site at http://www.unh.edu/affirmativeaction/dhpolicy.htm.
• Discussed procedures for applying for the Fair and Impartial Resolution procedures were outlined. FAIR is applicable for complaints and/or grievances relating to work situations not having to do with job classification, merit, and those issues covered under the above discrimination and harassment policies.

For more information on the OS Council, visit http://www.unh.edu/os-council/index.html.