1 CUPA-HR’s 2005 Benefits Survey A Review of Selected Findings Ray B. Sizemore, Ph.D. Director, Research & Information Systems CUPA-HR Stan McKnight President, Stan McKnight & Associates

2 Provide overview of survey Describe selected findings Today’s Objectives

3 Collect information that will allow institutions to benchmark their benefits programs and costs 2005 is the third time the survey has been administered This year’s survey modified extensively based on respondent feedback –Simplified question structure and separated into four stand-alone independent surveys –Tried to ensure appropriate response options available for each question –Added comments box at the end of each section –Reviewed redesigned document with last year’s respondents before finalizing Goal of Benefits Survey

4 Original benefits survey developed by a CUPA-HR advisory committee in 2002 Survey administered through SurveysOnLine, CUPA-HR’s Web-based data collection system McKnight & Associates provided subject-matter expertise support to survey respondents Survey open from March 1 to June 12, 2005 Data reflects programs in place on Jan 1, 2005 for full-time, non-temporary, faculty & staff; student workers not included Survey Process

5 Two Survey Reports –Employee Health Care and Non-Health Care Benefits page document containing more than 380 detailed tables –Retiree Health Care Benefits page document containing more than 155 detailed tables –Available electronically as a PDF download DataOnDemand –Real time data analysis system giving users direct access to the data –Comprehensive set of slides created by CUPA-HR for use with subscriber comparison groups Special Studies –Custom studies of the data conducted by the CUPA-HR research staff –Not encouraged because of survey’s complexity; costly to do To order survey results, go to highlight Surveys in menu on left, then select Benefits Survey 2005 Three Ways to Access Data

6 General Questions –Institutional Basics –General Benefits Questions –FSA, EAP & Domestic Partner Benefits Health Care Plans –Major Medical –Traditional –HMO/EPO –PPO –POS –Stand-Alone Drug Plans –Stand-Alone Dental Plans –Stand-Alone Vision Plans Insurance and Retirement –Basic Life Insurance –Short-term Disability –Long-term Disability –Retirement Programs Time Off Benefits –Paid Time Off Plans –Vacation Leave –Sick Leave –Other Leave Other Benefits –Tuition Support –Relocation & Housing Survey Content

7 TABLE 1-A Affiliation & Classification of Respondents CUPA-HR 2005 Benefits Survey PublicPrivateTotal Doctoral (18.5%) Master’s (28.7%) Bachelor’s59499 (26.8%) Associate’s52254 (14.6%) Specialized24042 (11.4%) Total134 (36.3%) 235 (63.7% 369 (100.0%) Respondent Affiliation & Classification

8 Respondents with System Aggregates TABLE 1-B Affiliation & Classification of Respondents Counting Institutions Reported in 11 System Aggregates CUPA-HR 2005 Benefits Survey PublicPrivateTotal Doctoral (23%) Master’s (30%) Bachelor’s59499 (23%) Associate’s60262 (14%) Specialized24042 (10%) Total195 (45%) 235 (55%) 430 (100.0%)

9 Institutional Basics TABLE 2 Institutional Basics of Respondents CUPA-HR 2005 Benefits Survey MedianAverage Budget Size$61M$206M Undergraduate Student FTE 2,5776,381 Graduate Student FTE 6221,514 Faculty FTE Benefit Cost as % of Payroll 29%

10 TABLE 3 % of Responding Institutions Providing Each Benefit CUPA-HR 2005 Benefits Survey Employee Type:Full-TimePT ≥ HalfPT< Half PPO Plan77%44%4% HMO/EPO Plan54%32%4% Major Medical Plan27%16%2% POS Plan26%17%2% Traditional Plan24%13%2% Drug92%52%5% Dental95%56%5% Vision67%40%4% Basic Life Insurance97%49%5% Short-term Disability61%34%6% Long-term Disability97%43%4% Retirement Benefits96%68%11% Vacation Leave99%72%16% Sick Leave98%69.%15% Tuition Support95%54%10% FSA91%56%7% EAP69%51%22% Benefits Provided

11 Health Care Basics TABLE 4 Health Care Basics of Responding Institutions CUPA-HR 2005 Benefits Survey Median/Average # of health care plans offered per plan type 1.0 / 1.5 % of institutions with no set schedule for seeking health care bids 74% % offering health care for retirees63% % offering Health Reimbursement and/or Health Savings Accounts 15%

12 Domestic Partner Benefits TABLE 5 Domestic Partner Benefits of Responding Institutions CUPA-HR 2005 Benefits Survey % offering Domestic Partnership Benefits40% For opposite sex partners25% For same sex partners37% For children of Domestic Partners34% Requiring formal certification91% Limitations on changing designated Domestic Partners 62% Offering fewer benefits for Domestic Partners16% Health care is most frequently offered benefit95% Life insurance/tuition support is least frequently offered benefit 78%

13 Prevalence of Combined Plans TABLE 6 Prevalence of Combined Health Care Plans That Include Both Employees and Retirees Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey Major Medical35% Traditional31% HMO/EPO43% PPO50% POS40% Average Median40%

14 Health Care Annual Cost Institution’s Cost Employee’s Cost Median$3,221$833 Average$4,932$1,975 TABLE 7 Annual Costs Per Life Covered All Health Care Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey

15 Changes in Health Care Costs TABLE 8 Changes in Health Care Coverage Costs This Plan Year Over Last - Average Median All Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey InstitutionsIndividuals % no change17%33% % increased78%63% % deceased5% Median increase10% Median decrease8%9%

16 Health Plan Coverage of Drugs, et al TABLE 9 Frequency with Which Health Care Plans Cover Drugs, Dental, and Vision - Average Median All Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey Prescription drugs 86% Dental care14% Vision care29%

17 Health Care Contribution Rates TABLE 10 Monthly Health Care Plan Contribution Rates Average Median All Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey EmployeeInstitution% of Institutions Paying All Costs Employee Only $71$31129% Family$296$6618%

18 Medical Deductibles & Coinsurance TABLE 11 Medical Annual Deductibles, Coinsurance, and Maximums - Average Median All Plans * Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey Deductible per person$265 Deductible per family $670 % paid by plan after deductible 88% Out-of-Pocket max per person$1,400 Out-of-pocket max per family$2,800 Lifetime maximum benefit$2M * PPO and POS IN-Network

19 Cost of Physician Visits TABLE 12 Median Co-Pay and Coinsurance for Physician Visits Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey All Plans In-Network PPO Out-of- Network Primary care Physician co-pay $16$30 Specialist co-pay $19$30/35% % paid by plan after co-pay or deductible 94%72%

20 Mental Health/Substance Abuse TABLE 13 Mental Health/Substance Abuse Benefits Average Median All Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey Out-patientIn-patient MH / SA co-pay $20$83 % paid by plan after co-pay or deductible 89% Maximum # of mental health visits per year 31-- Maximum # of substance abuse visits per year 29-- Maximum # of confinement days per year – MH/SA combined --30 Lifetime limit on number of confinements --18

21 Prescription Drug Plan Deductibles TABLE 14 Prescription Drug Plan Deductibles, Coinsurance, and Maximums – Average Median All Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey Part of Health Plan Stand-Alone Plan Deductible per person$65$100 Deductible per family$315$200 % paid by plan after deductible 98%$100% Out-of-Pocket max per person$1,270$1,000 Out-of-pocket max per family$2,300$3,500 Lifetime maximum benefit$1.3M--

22 TABLE 15 Prescription Drug Plan Co-Payments, Deductibles, and Supply Limits – Average Median All Health Care Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey RetailMail-Order Co-pay generic$9 / 27%$17 / $27% Co-pay branded on formulary $20 / 29%$40 / 31% Co-pay branded not on formulary $44 / 36%$67 / 47% Deductible$60$63 Supply limit30 days90 days Prescription Drug Plan Co-Payments

23 Annual Cost for Stand-Alone Plans TABLE 16 Median and Average Annual Costs Per Life Covered for Stand-Alone Drug, Dental and Vision Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey Institution’s CostEmployee’s Cost MedianAverageMedianAverage Prescription Drugs $593$741$104$151 Dental$243$294$167$202 Vision$59$65$58$77

24 Dental & Vision Monthly Contributions TABLE 17 Monthly Median Contribution Rates for Dental and Vision Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey Dental EmployeeInstitution % Inst Paying All Costs Employee $16$2127% Family $49$437% Vision Employee $7$623% Family $18$913%

25 Basic Life Insurance Plans TABLE 18 Basic Life Insurance Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey % offering a basic life insurance plan97% % of plans including AD&D82% % requiring mandatory participation80% Median annual cost per life coveredInstitution:$133 Employee:$79 % basing insurance on salary and salary + age 70% Median maximum amount of basic life insurance – all jobs If Fixed: $50,000 If Multiplier: 1.5–2 % giving employees option to purchase additional life insurance 74%

26 Retirement Plans TABLE 19 Retirement Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey % of retirement premium paid by the institution Staff: 98% Faculty: 97% % requiring participation in retirement program 64% % having same retirement plan for faculty and staff 78%

27 Defined Benefit Plans TABLE 20 Defined Benefit Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey % overall indicating Primary Retirement Plan85% % with employees eligible from date of hire72% % computing NRB as X% * Years of Service * Average Salary %:63% Median X%:2% Median minimum age and service requirement (in years) for retiring with full benefits Age: 60 Exempt Service: 25 NE Service:15 Faculty Service:15 Age + Service:80 Median minimum age and service requirement (in years) for retiring with reduced benefits Age: 55 Exempt Service: 7 NE Service:10 Faculty Service:5 A+S:70 Maximum % of salary payable per monthMedian:8%

28 Defined Contribution Plans TABLE 21 Defined Contribution Plans Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey % providing each type of plan403 (b): 82% 401 (k): 4% Other:14% Average % indicating Primary Retirement Plan52% Average % indicating employee eligible to participate from date of hire 47% Median minimum age and service requirement (in years) for retiring with full benefits Age: 60 Service: 2 A+S:74 Median minimum age and service requirement (in years) for retiring with reduced benefits Age: 56 Service: 4 A+S:66 Median maximum % of salary payable per month8% Maximum $ payable per monthMedian:$180 Average:$435

29 Time-Off Plans TABLE 22 Median Number of Time-Off Days Per Year First Year of Employment Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey * Benefits Eligible AllExecutiveExemptNEFaculty* PTO Plan Vacation Leave Sick Leave12 14 Personal Leave33333 Holidays1211 % with Sabbatical35%12% 4%98% % paying difference in Military Leave salary 41%43%44%46%36%

30 Availability of Tuition Support TABLE 23 % Offering Tuition Support Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey For attending this institution only 33.8% For attending this and other selective institutions 44.6% For attending any institution20.4% No1.2% Total100.0%

31 Full-Tuition Support TABLE 24 Of Those Institutions Offering Tuition Support, % Providing Full Tuition or Waiver of Fees Active Employee/Combined Plans CUPA-HR 2005 Benefits Survey At Own InstitutionEmployeeChildren Undergraduate80%73% Graduate64%53% At Other Institutions Undergraduate42%50% Graduate32%42%