2013-14 Graduate Assistant Plan Changes

1. 2013-14Graduate Assistant Plan Changes May 16, 2013 Lori Vivian, Human Resources Mike Kurland, Student Health Services

2. Background • GAs eligible for State Employees Health Plan until fall 2003 • State officials determined that GAs were ineligible for Employee Plan • UConn considered including GAs in the Student Insurance Plan, but elected not to • Student Insurance Plan had much lesser benefits • State signed an MOU with the University to provide a Graduate Assistant Plan • Graduate Assistants • Graduate Fellows • Students at UCHC • State manages GA Plan, with no UConn involvement • Develop the annual contributions • Determine benefit modifications • Solicit bids • Select vendors

3. GA Issues with Current Plan • Confusion regarding Student Health Insurance and GA insurance • GAs often waive student insurance in Student Administration System and assume it is for GA insurance • GAs will often receive Aetna student insurance card in the mail (if GA paperwork is processed late); once the card is used, the GA cannot waive the student insurance • Network providers only in CT, out-of-network coverage subject to high deductible ($1,000) • Non compliant with international student requirements, requires additional insurance • Effective date after start of semester, requires gap insurance • Open enrollment held in May with June deadline, when many GAs are away from school

4. Financial Concerns • State changed funding arrangement to self-insured effective September 1, 2010 • Claims/premiums could not be comingled with Employee Plan • If claims exceed premium, UConn must pay the carrier the excess claims • Unlimited Risk • No individual or aggregate stop loss insurance • First accounting on claims experience from the State produced in September 2012 • State recommended a retroactive premium increase: • Medical: 24.5% ($1.7 million), Dental: 8.6% ($200,000) • UConn’sdeficit for period 9/01/10 – 8/31/2012:  $2.3 million • Significant increase in UConn premium cost • $4.9 million (2010-11) to $7.9 million (2013-14)

5. Administrative Challenges • State’s system (CORE-CT) is not designed to handle academic calendar • Each enrollment/termination requires individual processing • No opportunity for mass processing the 500+ that occur each August • No opportunity for data transfer between Student Administration System • Nearly every GA enrollment requires retro processing by Payroll • Only those paid by the State can be in CORE-CT • GA Fellows are administered outside the system • UConn GAs are not paid over the summer • Premiums collected in advance (18 paychecks versus 26 paychecks), which requires special processing by the State, Payroll, and insurance carriers • System is available for open enrollment only once each year (May/June) • State Response to Issues • Focus is on State Employee Health Plan, no resources available to address GA issues

6. Student Insurance Change History • 2007-2008 • Plan design had MANY inside maximums and variations (dated plan design) • Coverage was limited. Hard to administer and understand for a consumer • 2008-2009 • Implemented a $50,000 Policy Year Maximum (across the board) • $250 In Network / $500 Out of Network Policy Year Deductible (waived at SHS) • Labwork not subject to the Policy Year deductibles • Referrals required for Storrs students only • 90% coverage for In Network claims; 70% for Out of Network • Office Visits: $25 copay when In Network; 70% Out of Network • Implemented a $5,000 Outpatient Maximum (including Surgeries • Implemented a $1,000 RX maximum per policy year with copays of $15/$30 • Cover Anesthetist at 90/70 benefit levels • Emergency Care Expenses covered at 90/90 benefit levels after a $50 deductible • Cover STD screenings • Continue to Exclude Annual Physicals, Annual Eye Exams, and coverage for Titers

7. Student Insurance Change History • 2009-2010 • Implemented a $150 ER Copay • Implemented the Hard Waiver Audit • Implemented a $100,000 Plan Maximum • Removed the Pre-Existing Condition Clause • Added coverage for SHS Office Visits • Sports Coverage: $2,000 Benefit Under the Medical Plan (paid for by Athletics) • 2010-2011 • Removed inside Plan Maximum of $5,000 ( surgical, MH etc.) • Removed the exclusion for sexual reassignment surgery • 2011-2012 • Increased Plan Maximum to Unlimited Coverage • Increased RX Maximum to Unlimited Coverage • Preventative Services covered at 100%(including physical exams, immunizations, etc.) • Implemented a $5,000 Out of Pocket Plan Maximum

8. Student Insurance Change History • 2012-13 (Affordable Health Care Act) • Removed all internal plan maximum amounts and further prospective compliance with Affordable Care Act, including 100% coverage for outpatient contraceptive drugs and device expenses • 2013-14 • Continued compliance with new Affordable Health Care Act regulations

9. Bid Process • Agreement was reached to include GAs in the Student Health Insurance bid process • Originally scheduled for 2012-13 year • Delayed one year because State information regarding GA experience was unavailable • Further delayed because GA claim data was incomplete • Expedited bid process • Quotes solicited in December • Bids received in January • Selection committee selected winning vendor in February • Presentations to senior management, Grad School, GSS Executive Committee • Presented to Board of Trustees at next available meeting (April 24) • Winning Bidder • Consolidated Health Plan (CHP), utilizing CIGNA network of providers • Broker: Bailey Agencies

10. GA vs. Student Insurance Comparison

11. Annual Cost of New Plan Paid by GA Paid by UConn Total GA Only $ 200 $ 3,730 $ 3,930 GA + 1 $1,440 $ 8,160 $ 9,600 Family $1,822 $10,328 $12,150

12. Advantages Achieved • Economies of scale • Enrolled Students: 2400, Enrolled GAs: 1800 • Fully insured • Liability is limited to premiums • Ability to budget • Ability to modify plan • UConn selects plan design and carriers • UConn puts the plan out to bid • Simplified Administration • Limited in first year, but anticipate significant changes for next year • Cost savings • Difficult to estimate, but anticipated at approximately $1million

13. Next Steps • Finalize details of the plan design • Determine the premium collection process • Develop enrollment process • Continuing GAs • Incoming/new GAs • Communicate, communicate, communicate

14. Questions