1. Staff Senate HR Items of Interest September 12, 2011 Sam Connally Vice President for Human Resources

2. 2 Reproductive Health Care Benefit  HHS has directed that all reproductive health care services must be treated as “preventive” care by 1-1-2013.  UofL has approved reproductive health care services as “preventive” care effective for all services on or after August 1, 2011.  No deductible, co-payment, or co- insurance.

3. 3 Express Scripts / Walgreens Contract  Employees have received notices from Walgreens Drug Stores indicating they will withdraw from Express Scripts effective Jan 1, 2012.  We are hopeful contract discussions will be resolved before 2012.  If Walgreens drops Express Scripts, our network will retain CVS and all other major pharmacy chain providers.

4. 4 Health Plan Design for 2012  Current YTD claims experience is within budget.  Projected 2012 health cost trends are within projected budget.  No expected increase in total cost of UofL health plan options.  No plan design changes are anticipated,

5. 5 Proposal to Re-Balance Health Plan Subsidies  Employee premiums have been constant over the past few years.  The University has absorbed health care cost increases in its subsidies.  Costs increase faster in the PPO than in the EPO or PCA options.  As a result, university subsidies have becoming “lumpy” among plan options.

6. 6 Proposal to Re-Balance Health Plan Subsidies  PPO Option enjoys a disproportionally higher than average subsidy (approx 2.8% ).  EPO, PCA-Hi, and PCA-Lo Options receive disproportionately lower than average subsidies (approx -2.0%, -5.8%, and -10.8%, respectively).  This effectively results in a cost-shift among employees, after health plan rates are set for the year.

7. 7 Proposal to Re-Balance Health Plan Subsidies  Calculate Weighted Average Subsidies for all health plan options.  Apply the same fixed dollar amounts to each health plan option.  Promotes equity among employees.  Employees responsible for cost differentials attributable to individual choice.

8. 8 Proposal to Re-Balance Health Plan Subsidies  Employees in the EPO, PCA-Hi, & PCA- Lo Options pay from $5-$88 more per month than average ($60 - $1056 / yr).  Employees in the PPO pay from $10 to $25 less than average ($120 - $300 / yr).  To re-balance health plan subsidies, we calculate the average subsidy, then provide the same subsidy for all plans, based on coverage level.

9. 9 Proposal to Re-Balance Health Plan Subsidies  Example for Employee Only Coverage:  Average Subsidy: $415/mo ($349 – $425)  EPO Subsidy: $415/mo  PPO Subsidy: $425/mo  Example for Spouse/Partner Coverage:  Average Subsidy: $210/mo ($146 - $249)  EPO Subsidy: $146/mo  PPO Subsidy: $223/mo  Example for Children Coverage:  Average Subsidy: $250/mo ($212 - $262)  EPO Subsidy: $232/mo  PPO Subsidy: $262/mo

10. 10 Impact on Employee Premiums if Rates are Normalized  Employees who choose EPO, PCA-Hi, or PCA-Lo options would save from $5 - $88 / month ($60 - $1056 / year).  Employees who choose PPO option would pay from $10 to $25 more per month ($120 to $300 / year).  Employees can change from PPO to EPO or PCA Option to avoid increase.  Total university funding would remain constant.

11. 11 Performance Evaluation Program Review  Staff Senate requested across-the- board increases in 2011, due to lack of confidence in performance evaluation system, with a return to merit in 2012.  Effectively represents a lack of confidence in the consistency & objectivity of supervisors (regardless of the performance evaluation form).  Key to improving consistency & objectively is supervisory training (not policy revision).

12. 12 A New Performance Evaluation Tool is in Development  Ad Hoc Performance Evaluation Committee has been working throughout summer to develop a new performance evaluation tool.  Will be working with the Policy Committee of the Staff Senate and providing overview to campus during September to solicit feedback.  Hopefully, will come to Senate as an information item in October, so we can train supervisors Oct – Dec.

13. 13 Performance Evaluation Policy Review will Follow  While supervisory training is underway, HR will work with the Policy Committee of the Staff Senate to review the underlying Performance Evaluation Policy.  Key issues include:  Relationship of PIP to Discipline.  Relationship of performance evaluation to salary increase eligibility.  Ability to grieve performance evaluations (less than satisfactory).  Other concerns identified by Policy Comm.