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Recommendations for 2013 Proposed Benefit Changes from the Benefits Advisory Committee

The Benefits Advisory Committee recently completed a comprehensive review of the university’s benefit programs at the request of Provost Lloyd Minor and Senior Vice President of Finance and Administration Daniel Ennis. The goal of the review was to evaluate ways of reducing benefits program expenses by 5% ($10 to $15 million). These reductions are necessary in light of increased pressure on the university’s financial position.

Recommendation What This Would Mean for You
Include benefit dollars in the benefit premiums. The benefit dollars program would be retired, and we would automatically use most of those dollars towards the cost of healthcare; this would enable us to mitigate some of the increases in employee's health insurance premiums.
Increase (over time) the total percent of health insurance premiums paid by employees to be more consistent with the market (JHU Family in 2012 is 22%; move to 25%). Percent of premiums paid by employees would increase in 2013 and beyond to be consistent with peer institutions.
Implement salary-based contributions to health insurance premiums (to address affordability). Employee's portion of premium would vary depending upon salary.
Increase health insurance deductibles and out-of-pocket limits to be consistent with the market and closer to peer institutions (ours have not been changed in seven years). Your deductible would increase (it's the amount you pay out of your pocket before your cost-sharing begins); your out-of-pocket limit would also increase.
Copayments for prescription drugs will change. It would continue to be cheaper to use a generic drug and mail order (rather than retail).
Increase cost-sharing for brand drugs (consistent with market and peers). Copayments for brand-name drugs would be more expensive reflecting their rising costs.
Vacation - reduce carryover vacation days for new hires from one year to the next. No change if you are a current employee; new hires effective 1/1/2013 would carry over a maximum of 22 vacation days.
Continue to capture program and administrative efficiencies. No change.

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