The average employee healthcare costs at most colleges and universities increased by 10 percent this year, according to a survey released Monday by the College and University Professional Association for Human Resources.
Although healthcare costs for current University employees have not gone up, University Staff Union President Jan Cornell said employees have expressed frustration with the eroding service.
The University is self-insured and designs its own health plan, but all claims are processed through Southern Health Services, Inc.
In addition to employees having to pay upfront for services, there are not enough doctors and dentists in the Charlottesville area, so many employees are forced to go as far as Fredericksburg or wait for Southern Health to find a provider in the area, according to Cornell.
"Southern Health doesn't pay enough to get doctors and dentists," Cornell said. "That's the biggest problem. If U.Va. wants to be self-insured, they need to have the doctors and dentists right here in town. No one has been responsive. I'm sure employees feel the same way. They feel like they're being overcharged."
Some, however, said they believe the health care coverage provided to University faculty is adequate.
"Southern Health has over 5,000 providers within 20 miles of Charlottesville and can enroll members who move away from the network area into the national [Private Healthcare Systems] network that has over 454,000 providers," University Health Plan Ombudsman Joanna Hayden said. "There are currently 59 participating dentists in a 20-mile radius of Charlottesville."
According to Cornell, although employee healthcare costs are not increasing, costs for retirees are increasing at about $50 per year.
"The price is going up, but the service is going down," she said. "It's outrageous for retirees. Anyone on a fixed income could not live with this. Since U.Va. has decided to self-insure with Southern Health, it has become a real problem."
According to Hayden, although there was an increase in premiums in 2005, the University picked up most of the bill.
"As an example, the enrollment costs in 2005 went up by four dollars per month for a single employee in the high premium plan for a total of $33 per month, while the employer contribution for the single employee went up $38, for a total of $302 per month," Hayden said. "National trends for health insurance in 2005 increased 13 percent over 2004 rates."
The University has had a self-funded plan since 1995 and has used Southern Health as a third-party administrator for medical claims since the fall of 2001, Hayden said.
The results of the online survey were based on responses from 369 institutions of higher education collected from Mar. 1 through June 12.
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