Benefits Committee
Meeting Minutes: April 22, 2008
Faculty and Staff Benefits Office
Bldg. 7, Woodrail Center
Al Hahn called the meeting to order at 10:35 a.m.
Those present included: Roger Heath, Allen Hahn, Jack Batterson, June DeWeese, Barbara Savio, John Bauman, Gordon Christensen, Mike Paden and Marj Leavene.
On a motion from Bauman, minutes of the March 18, 2008, were approved with the following amendment by Jack Batterson: “The University of Missouri uses the entry age normal method of accounting and assumes an 8% return for its pension plan.” The sentence is to be included in page one, paragraph four of those minutes.
The committee discussed the possibility of suggesting that the UM system offer a matching co-payment for 403B plans. Paden reported that only 27-28% of current UM employees participate in the three tax-deferred programs offered by the University System. With the current lack of resources, this program is unlikely. Pension increases are sporadic. Faculty and staff salaries are below the national average.
Batterson asked if a third option for long-term care insurance was a possibility. Paden reported that the system currently reviews these options on a periodic basis; other reviewed plans with cheaper premiums do not appear to be cost effective.
Paden reported that UM has pulled the plug on the proposed co-pay medical insurance option for retirees. Access to care was the major concern. According to GAO publications, out of pockets costs with this program were greater than expected. Also, the Medicare subsidy is not guaranteed.
An e-mail from Professor Lee Wilkins of Journalism was distributed to committee members. Paden assured committee members that he was aware of the situation and that the cost of the test (diabetes screening) is going to be covered for all. Basically, the problem was an encoding issue which has now been corrected. Paden reported that he felt that the current arrangement with Coventry and the University Hospital is working better than anticipated. Managers review all coverage denials on a daily basis. Coventry was selected because of their service record. Benefits staff has spent much less time on issues with Coventry than previous providers. 60-65% of claims are processed electronically.
The change for Medicare Part D coverage has been postponed to January 2009 rather than June 2008. The possible confusion with deductibles and out of pocket for a mid-year change was the motivation for the change.
After some discussion, the committee agreed that the next committee meeting would be held Fall 2008. The committee asked that the minutes reflect their appreciation of Al Hahn’s leadership and Mike Paden’s willingness to participate and clarify issues of concern.
Members were reminded of the MURA luncheon to be held Wednesday, April 23, 2008 in the Field House, south side of Hearnes Bldg.
The meeting adjourned at 11:30 a.m.
Respectfuly submitted,
Marj Leavene
