1. 1 Benefits Committee Report (7 Questions in 10 PowerPoint Slides.) Dan Ostrov* Faculty Senate Meeting May 12, 2010 *Disclaimer: Due to time constraints, this presentation was put together just by me with some informal input from some of the other committee members. This report should not be construed as the product of the committee.

2. 2 Introduction It would be great to hear your thoughts on the questions posed in the following PowerPoint presentation. You can provide your thoughts about these questions either through your Faculty Senate Council representative or by emailing me directly at dostrov@scu.edu before the next Council meeting on June 2nd. Also, feel free to contact me with any questions you have -- dostrov@scu.edu Dan

3. 3 Benefits Committee Composition 2 UCC appointed faculty: Dan Ostrov, Bob Peterson 2 UCC appointed staff: Matt Cameron, Julie Wong 2 HR personnel: Molly McDonald (chair), Ingrid Williams Benefits Committee Charge The Benefits Committee will be a free-standing committee, reporting to Bob Warren. Its mandate will be to meet with representatives of and advise H.R. and facilitate communication between H.R. and the SCU community concerning benefit issues.

4. 4 Non-healthcare issues: 1) Question 1: Do you have any ideas for improving SCU’s non-healthcare oriented benefits? (Retirement, Tuition, Insurance options, Disability, Leaves, Childcare, etc.) One caveat: Given current finances, costly suggestions are unlikely to be adopted. 2) Any Problems you are having with H.R.: Please contact Molly McDonald directly. She really wants to know!

5. 5 What makes health care costs keep people up at night? The average rate of health care inflation: 10% Health care costs, on average, are doubling every 7.3 years.

6. 6 SCU currently pays 83% of premium costs. Employees pay 17% of premium costs + co-pays. If SCU pays 10% more, Employees pay 10% more. If SCU pays 8% more, Employees pay 20% more. If SCU pays 6% more, Employees pay 30% more. So, assume next year premium costs go up 10%, then… The Benefits Committee doesn’t decide what SCU pays. We largely suggest how employees share whatever cost remains.

7. 7 A Choice: Premiums vs. Co-pays. If we offer “Hi/Lo” plans, the choice between higher premiums (Scylla) vs. higher co-pays (Charybdis) is up to the employee. “Hi/Lo” plans split each major plan (Kaiser, Blue Cross HMO, etc.) into two plans: One with higher premiums and lower co-pays. The other with lower premiums and higher co-pays. (SCU’s contribution to both plans would be the same.) Question 2: Should we look at offering Hi/Lo plans?

8. 8 Institutional comparison of monthly costs for Kaiser plan Question 3: The individual employee cost ($0) is the lowest of comparison institutions and the employee + family cost ($328) is the highest. Should we slowly lower the family cost and raise the individual cost?

9. 9 SCU’s monthly share of cost for major health plans Question 4: Should we slowly move to equalize the numbers within each these 3 categories? That is, over time should the heights of the first four bars become the same, the second four become the same, and the third four become the same?

10. 10 Communication Question 5: Do faculty think the Benefits Committee should publish its minutes or agenda on the Governance Website? Question 6: Do faculty want access to the full information we collect concerning how our healthcare benefits compare to other academic institutions? (The chart on slide #7 is only one example of this information.) Question 7: What types of consultation and communication would faculty like to see from our committee in the future?