Council Meeting Coverage: Employee Health Benefits |
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April 10, 2012,
Volume 58, No. 29 |
There was a presentation on employee health benefits at the March 28 University Council meeting after the State of the University reports (Almanac April 3, 2012).
Jack Heuer, vice president of Human Resources, spoke about the collaboration and consultation that exists between Council’s Personnel Benefits Committee and Human Resources.
He said that Penn provides “market competitive benefits” including healthcare: medical, prescription, dental and vision; life insurance and long-term-disability, long-term care; retirement plans as well as tuition benefits, work and family benefits and time off.
He outlined some of the trends nationally: a shift from inpatient care to outpatient care; a shift from brand name drugs to generics; approximately 10 million people without health care; and a decline in the number of individuals with private insurance.
Susan Sproat, executive director of Benefits, then spoke about the picture at Penn. There has been in increase in the adult dependents—up to age 26—being covered on parents’ health plans: 600 have been added. Preventative care is now offered at 100% in line with the Healthcare Reform, but there is an under-utilization of preventative care. As part of the women’s preventative health initiative, contraceptives are now available with a zero copay. Penn has added new transgender benefits for faculty and staff.
Medco will be the new vendor for prescriptions rather than Caremark.
Under the Penn Faculty Practice Plan, there are enhancements to major restorative dental services at no increase in premium.
There are now two vision providers: Davis and VSP.
She also noted that there are several upcoming mandates and responsibilities due to the Healthcare Reform such as the new IRS limit of $2,500 cap on the health flexible spending account down from the current $4,000 limit. Debit cards will be introduced for out-of-pocket medical expenses rather than having to submit paperwork and be reimbursed.
Penn will be adding more wellness programs and free biometric screenings; there has been an increase in the dollar amount of life insurance available without any evidence of insurability.
As a self-insured employer, Penn will continue to monitor healthcare spending, reward healthy behavior and expand communications to assist faculty and staff to make more informed decisions.
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