Benefits Committee
Meeting Minutes: December 18, 2007
Memorial Union
Coffee Shop
Al Hahn called the meeting to order at 10:00 a.m. at the Memorial Union Coffee Shop. Those present included John Bauman, Marj Leavene, Michael Paden and Al Hahn.
Paden anticipates that the University of Missouri Retirement, Disability and Death Benefit Plan annual report will be available late February or March. A copy will be available on the web. The plan is sound and the report may show it is 100% funded.
Pension and health benefits are budgeted before any other expenditures, including salaries. Paden anticipates no increase in medical benefit premiums. The Plan has received a substantial subsidy back from the Medicare Part D program. The yearly return would be roughly $2M under the current plan. The University is considering an alternative funding approach which may increase the annual payback amount by 5%.
The university is self ensured and has signed a recent contract with Coventry Health Care to administer the medical and drug insurance program. The University contract with United Healthcare has been extended through 2008 to ensure all claims are paid. A member of the committee expressed concern with the method that Great West uses to notify the status of insurance claims. The company has recently been purchased by Sigma and has promised to change the notification system if the University renews their contract. Part of the issue deals with the State’s requirement to notify the insuree if the claim is not paid within a certain predetermined time.
Benefits office is looking into a different design for the medical piece of the insurance program for retirees. This would not be a replacement program, but an option with annual enrollment opportunities. The Medicare Advantage Fee for Service option would be a co-pay, non-network based program. This option could provide better benefits at a lower cost to those retirees who retired after September 1990. The new option is a total health program driven by Medicare. The University is working with two suppliers and should have a decision made by mid-summer. Local meetings and mailed materials will be sent to all retirees. There are two providers who are not willing to accept Medicare (a requirement for the program) at this point: Boone Hospital Center and Barnes Hospital in St. Louis. Both are BJC hospitals.
Retirees now have the option to enter or remove themselves from the eye insurance program on an annual basis.
In an effort to steer users into a more cost effective method for procuring prescription drug, the benefits office has arranged a 3-month supply of maintenance drugs at the University Pharmacy at the same price level as Express Scripts. This option is available only in Columbia. The “donut” on drug usage that may occur with Medicare Plan D does not exist for MU retirees.
Ken Hutchinson was the key to retirees recent 2% pay increase. The increase will amount to a roughly $17M liability to the benefits plan. Paden reported that less than 10 people opted for the guaranteed COLA option when they retired. The university does use a benchmark tracking system for retiree salaries.
The MURA ombudsman position previously held by Bonnie Arnold remains open. No names came in the discussion for a replacement.
Paden reported that changes to the university benefits packages are now e-mailed to current employees and asked if that was an option for retirees as well. The benefits booklet is now available using a CD format. The cost associated with the CD is considerably less (65 cents) compared to the $11.00 paper version. There are roughly 3500-4000 Columbia retirees in the system. Hahn offered to ask Hildebrande to survey retired e-mail users about their willingness to switch to this system.
The next meeting will be held January 22, 2008, in the new benefits office at the Woodrail Center.
The meeting adjourned at 11:15 a.m.
Respectfuly submitted,
Marj Leavene
