The University Senate
of Michigan Technological University
Minutes of
Meeting 523
10 October
2012
Synopsis: Presentation:
“Benefit Changes for 2013 and Beyond” by VP for Administration Ellen Horsch, VP for Research Dave Reed, Benefits Director Renee Hiller, and President Glenn Mroz
1. Call to order and roll call. President Bill Bulleit called the University Senate Meeting 523 to order
at 5:30 pm on Wednesday, October 10, 2012. The Senate Secretary Brian Barkdoll
called roll. Absent was a representative of the Undergraduate Student
Government.
Recognition of visitors. Guests included Glenn Mroz (President’s Office), Max Seel (Provost’s Office), Dan Greenlee (Chief
Financial Officer’s Office), Ellen Horsch (VP for
Administration’s Office), Jim Frendewey (School of
Technology), Beatrice Smith and Sandra Boschetto-Sandoval (Humanities), Stephen Anderson, and Renee
Hiller and Karen Hext (Human Resources).
2. Approval of agenda. Bulleit
asked if there were any changes; there being none Bulleit
declared the agenda stood approved.
3. Approval of minutes from Meeting 522. Bulleit
asked if there were any changes; there being none Bulleit
declared the minutes stood approved.
4. Presentation on “Benefit
Changes for 2013 and Beyond” by VP for Administration Ellen Horsch, VP for Research Dave Reed, Benefits Director Renee Hiller, and President Glenn Mroz
Horsch showed slides
and answered pre-prepared questions regarding the Benefits Liaison Group (BLG)
and the 3-yr health and wellness roadmap and stated that more details will be
available on the Senate web site as well as having Frequently Asked Questions
and a glossary on their web site. She
clarified that MTU is self-insured with a vender that processes claims. This provides more flexibility and exemption
from some state regulations. There is
some effort to investigate trying to get a coalition of Michigan universities
to pool together to reduce costs.
Scarlett stated that the Senate should be the principle group for
discussion and asked if the BLG should be a senate committee? Seel said that
there is some need for confidential discussion as well, however. Vable said that the
university web site does not list it as a university or senate committee and
that a description of the BLG on the university web site is needed. Horsch mentioned
that Senate Policy 22-00 gives info on the BLG.
Hiller said that the BLG is mentioned on the Benefits web site but will
add purpose and membership later.
Reed
presented information on health care costs on slides and health care expenditure history. Mullins asked if the figures were adjusted to
the Consumer Price Index to which Mroz said that it
is about a 15% increase nationally. Reed
explained the fringe rate process with the Office of Naval Research that
includes health care costs. A consultant
estimated our costs for next year to be about $1.5M higher than expected due to
costs from health providers increasing, especially radiology-related costs. The consultant AON HEWITT analyzed why costs
are higher and identified reasons as rural locations having higher costs and
high payments for dependents. Bulleit asked about Michigan universities to which Horsch stated that
only the University of Michigan and Michigan State information is available in
Michigan but that she will re-run the analysis for Michigan Tech benchmark universities. When Barkdoll asked if the information could
be made available, Mroz replied that the information
is proprietary. Mullins wondered what
ages and gender is more costly and why we have more dependent costs to which it
was speculated that employees have more dependents than others. It was also pointed out that Michigan Tech pays
premiums of $1,000 less per person than other institutions. Reed pointed out that some state legislative
policy changes are coming regarding taxes and caps on what employers can
pay. In addition, the Affordable Care
Act will make changes, such as the maximum amount given to HSA declining. Barkdoll asked about future trends to which Reed
replied that some things have gotten better, but some things haven’t. Scarlett asked why do we want to be only
average? Why not above average?
Hiller
presented slides showing factors that can affect health care projections, such
as plan design, discounts, and claims history.
Horsch interjected that Michigan Tech cannot
find out discounts from providers, making it difficult to analyze them. Hiller gave details for next year regarding
the PPO and HSA plans. Beck asked how it
was calculated that a child’s costs are the same as an adult’s in response to
the statement that dependents will all be charged the same premium. He expressed concern for lower-income
families and stated that costs should be calculated for children separately
since they don’t cost as much. Horsch replied that about 79 employees earn less than
$30,000 and that they do not have many dependents, in general. Mullins stated that older people cost more
and asked if they should be charged more and families with children not be
penalized. Hiller stated that dual-employee
families will not be charged a premium for either employee, only for
children. Hiller also gave the timeline
for upcoming changes. She also stated
that there will be information forums on options for 2013. Christianson requested a cost calculator to
help decide which plan to choose. Hiller
replied that it depends on which vendor is chosen. Moran asked if employees will have to change
HSA accounts to which Hiller replied that we don’t know yet but that will be
asked of the new vendor. To Hendrickson’s question about why this process is being done
so late Horsch replied that it is not too late and
that the process cannot be started earlier.
Mroz stated that discounts make a difference
and this can be improved with a new vendor since our current vendor did not
answer questions regarding discounts well.
Onder stated that AETNA had a higher charge
for the same radiological procedure than BCBS had. Horsch replied that
this relates to the discount issue and it is being looked into. Breffle stated that
the U.S. presidential election may influence health care. Caneba asked if the
analysis can be made to be relative to the number of employees and dependents
to which Reed replied that information is on the detailed analysis pages. Vable read a
question from a constituent asking why we do not keep health care costs the
same and reduce other university budgets.
Mroz replied that we don’t want to anger
employees by cutting other budget items due to increased health care costs. It is better to change vendors first to save
money before reducing other university budgets.
Scarlett asked if employees would get rebates if health care costs were
less than projected to which Reed replied that the university can make
contributions to HSA accounts or give a rebate. Christianson asked if salaries
can be increased for employees who opt out of health insurance. It was replied that this has been considered,
but no in-depth analysis has been performed yet.
Bulleit stated that he
sent outside questions to Horsch without any names on
them to be answered in the presentation.
Bulleit read an outside question asking why
parking and health care costs are separated and if all budget items should pay
for themselves? Reed replied that they
really are not separate in the university budget.
To
the question if these cuts are in line with building a world class faculty and
staff Mroz replied that they are never in line, but
we did have raises and are trying other things.
To keep in line with a world-class university more faculty have been
hired recently. He also pointed out that
health care is not always needed if a person stays healthy and, therefore, may
not affect some employees as much as salary.
Michigan Tech is trying to be competitive. An example is that the salary raise for
promotions was raised. Mullins pointed
out that financial aid will cost more in the future due to promises already
made and wondered if it should be reduced, to which Mroz
stated that costs have been reduced by making scholarships based on need,
thereby saving approximately $4M. Financial
aid will level out in 2014. Moran asked
if salaries should be increased enough to pay for employees own health care and
if the university should get out of the health insurance business to which Horsch replied that some would not ever opt out. Scarlett again stressed that the Affordable
Care Act only regulates the minimum amount the employer can provide and that
the university should not provide the minimum benefits to make it an attractive
place to work.
Hendrickson
urged that the University Committees website be kept current to which Horsch and Seel stated that they would work on it.
5. Reports
a. Senate
President
Bulleit stated that he
will report after BLG meetings.
b. Senate
Standing Committees
There
were no committee reports.
6. Old Business:
none.
7. New Business:
a.
Proposal
1-13: Proposal to rename the “Interdisciplinary Minor in Hydrogen Technology”
to the “Interdisciplinary Minor in Alternative Energy Technology” (Voting Units: Academic)
presented by Curricular Policy Committee
Gierke presented and
recommends it. Mullins stated that the
Finance Committee has not reviewed it.
b. Proposal 2-13:
Change of Name of an Established Academic Program from “Bachelor of Arts in
Liberal Arts with a Concentration in History” to “Bachelor of Arts in
History” (Voting Units: Academic)
presented by Curricular Policy Committee
Gierke presented and
recommends it. Mullins stated that the
Finance Committee has not reviewed it.
8. Adjournment.
President Bulleit
adjourned the meeting at 7:13pm.
Respectfully submitted
by Brian Barkdoll
Secretary of the University Senate