ACA Roll Out for University Budget Officers & HR Facilitators February 25, 2015

Today’s Agenda Review Implementation Timeline Define Affordable Care Act (ACA) Eligibility Discuss Eligibility Scenarios Discuss the Need for Data Clean-up Discuss Issue Related to Temporary Faculty Discuss Budget Impact Next Steps

Initial Measurement Period Report (4/1/14-3/31/15) Communicate ACA Benefit during Open Enrollment ACA Compliance decision points to EVPFA with Committee recommendations Call special University Budget Officers meeting to review ACA requirements Implementation Committee begins meeting weekly Identify High Level Decision Points ACA Implementation Schedule February 25, 2014 University Survey Results Reviewed Implementation July 1 Send departmental list of ACA eligible employees Departments adjust FTE based on actual hours FTE change communicated to employees Send letters to employees regarding enrollment Multiple town hall meetings for eligible employees Ongoing meetings with University Budget Officers and HR facilitators Begin data clean-up

REGULAR FT ( FTE) + WEPP *Single Assignment Full Health Benefits PLUS OTHER BENEFITS with Credit FTE Temporary Single Assignment or “.75+” Multiple Assignments Health Benefits with Credit FTE Single or Multiple Assignments Health Benefits with NO Credit Who Gets What Benefits? ACA Compliance Audit “Full Benefits with Credit” “Health Benefits with Credit” “Health Benefits NO Credit” Health Benefits with Credit (if evaluated with 30+ hours) “Health Benefits with Credit” ACA Benefit

Review Eligibility Scenarios

Cost Distribution Health Credit follows cost distribution of the assignment Employee has only ONE assignment Health Credit follows cost distribution of the main assignment Employee has multiple assignments, but is eligible based on MAIN assignment Health Credit is prorated across all assignments based on FTE Employee is eligible based on MULTIPLE assignments

Data Clean-up Additional Assignments Active Assignments with no pay FTE Alignment Seasonal Employees

Temporary Faculty Employees Sub-committee appointed to review temporary faculty issues College representation (Arts & Sciences, Communication and Information, Business &Economics, Agriculture, Food and Environment) Meets weekly to develop standard operating procedure and guidelines for employing temporary faculty

Temporary Faculty Employees Current issues being discussed: Standardized FTEs for Instructional Faculty Start and end dates for Part-time or temporary faculty/instructors Instructional terms Service gaps Standardized process for Visiting Scholars No pay vs. Pay Ongoing issue review and consideration address: Contact committee members directly Committee to finalize work by the end of March to present to deans and executive leadership

CY 14- ACA Positions FCC Breakout (935 positions) –A 1.4%-I 5.5% –C 1.2%-K.1% –E.1%-P.2% –F.1%-R54.5% –G13.5%-S11.8% –H 5.5%-Z.1% -Other 5.9%

Enrollment Projections We surveyed 42 Institutions through the TIAA-CREF HR Leadership Exchange –62% public, 38% private –Many institutions already offered benefits to employees working 20 hours or more. –Those offering new coverage indicate: Less than 25% enrolled, only two responses out of 22 indicate more (50%, 80%). –Conservative estimate for UK- 50% participation rate.

Estimated Cost at 50% Enrollment FCC Breakout (rounded) –A$46K-I$182K –C $40K-K$ 4K –E $ 5K-P$ 6K –F $ 4K-R$1.8M –G $446K-S$388K –H $183K-Z$ 4K -Other$194K Total- $3.3M

Next Steps We will work with the University Budget Officer group to schedule ongoing meetings from March through June to: –Review data clean-up –Answer questions related to eligibility –Discuss special ACA open enrollment for June Letters to affected employees Town Hall Meetings