Come January, University employees will receive several new health care benefits. As part of an effort to increase the number of participants in the University's low-premium health care plan, the Board of Visitors also approved the reduction of low-premium prices and the increase of high-premium plan pricing.
Under these new provisions, for example, the monthly insurance rate for a family decreases from $129 to $116 under the low-premium option and increases from $290 to $299 under the high-premium option.
The low-premium plan, which is fairly new to the University, had 828 members in 2006 as opposed to the high-premium plan's 11,290 participants.
"We think the low-premium plan is a good deal for our employees and we're trying to encourage more people to take advantage of that," said Susan Carkeek, vice president and chief human resource officer. "The rates are just so affordable, so we want to make it as attractive as we can."
In addition to decreasing rates, the University will expand members' benefits in an effort to make the low-premium plan more attractive. For example, the University will cover 100 percent of immunization costs for low-premium members, according to Anne Broccoli, assistant director of University benefits. Currently, only employees who have purchased the high-premium plan receive full coverage for immunizations.
The low-premium plan will also add a family out-of-pocket maximum for co-insurance. With these changes, the maximum a family would have to pay out-of-pocket is $7,000 for in-network coverage and $14,000 for out-of-network coverage. According to Broccoli, in-network coverage includes doctors and hospitals contracted with Southern Health Services, University's current insurance provider. The current plan requires a $3,500 out-of-pocket payment, an amount that could have a large impact on a family with one or more children, Carkeek said.
"By putting a cap on [the out-of-pocket payment] ... people would say the low-option plan isn't so bad," Carkeek said.
Both low-premium and high-premium members will receive 100 percent coverage of preventive services, such as mammograms and annual appointments with physicians, Broccoli said. This provision removes the $150 and $300 maximums members currently pay.
Pharmacy rates will undergo changes as well. The University's costs of pharmaceutical prescriptions increased by 18 percent last year, according to Carkeek.
The University plans to retain the same rates for generic medication costs, but increase co-payments for brand prescriptions in an effort to encourage more people to purchase the lower-cost option, according to University spokesperson Carol Wood.
"Pharmacies are coming up with new and fancier drugs all the time," Carkeek said. "That's a great thing but they are expensive. We [have to] raise rates on the pharmacy side if we want to keep the plan cost-efficient. It's kind of providing people the option to use the low-cost incentive. The generics are the low-cost incentive."
Carkeek added that despite the increase in co-payments, the University will still cover 80 percent of prescription costs. Employees will remain responsible for the other 20 percent.
The new health plan will also cover prescribed smoking cessation medications and coverage for genetic testing that covers specific medical criteria.
Carkeek added that the University will now provide more comprehensive health care options in comparison to other state institutions.
"We provide better benefits at lower costs," Carkeek said.
Gertrude Fraser, vice provost for faculty advancement, said the University is competitive with other national institutions when it comes to benefits.
"The big picture of benefits is something that faculty say is important to them," Fraser said. "We're often competing with institutions that are in many ways similar to us. Whatever additional value we can bring to the table distinguishes us."
Wood noted that it is rare to see health care premium rates decrease.
"These are really positive changes that we're making," Wood said.
The Human Resources System reevaluates employee benefits every year and faculty and staff are able to submit requests for certain areas they would like to see enhanced. In the past the University was unable to improve benefits to the extent that they have this year because of costs. According to Broccoli, the University now has adequate reserve funds to fully fund the 2008 Health Plan.
Read More
Four years of construction — how has Grounds changed?
By Grace Little | 2 hours agoArriving on Grounds in 2021, the University’s graduating class of 2025 saw a smaller collection of buildings than the one they are now preparing to leave.
U.Va. loses over $60 million in federal research cuts
By Bertie Azqueta | 2 days agoThe impacted grants include three from the NIH, seven from the NEH, one from the United States Agency for International Development and four from the State Department.
Department of Education reverses course, awards Federal Executive Institute to U.Va.
By Ford McCracken | 5 days agoThe ED had previously awarded the institute to Charlottesville City Schools.
