After a competitive RFP process, the Board of Regents approved offering employee health insurance and drug benefits for our active employees, retirees under the age of 65, and dependents through Lovelace Health Plan and Presbyterian Health Plan for fiscal year 2008-09.
We are pleased that we are able to continue to offer access to the two major provider networks in the Albuquerque metro area, Lovelace and Presbyterian, in addition to offering access to UNM HSC providers and facilities. Furthermore, our employees have traditionally had access to these networks and many have developed long-term relationships with their physicians.
The benefits offered are the same for both vendors and provide three tiers of benefits to all employees:
· Tier I is for use of UNM providers and facilities.
· Tier II is for use of Lovelace/Presbyterian providers and facilities.
· Tier III is an indemnity type plan for out of state/out of network benefits.
While national premium increases have averaged 10 percent, we are fortunate to have received very favorable rates from both vendors. As a result, employees who choose the Lovelace Health Plan will not see a change in health insurance premiums. Employees who choose the Presbyterian plan will experience an average 7.5 percent increase in rates over the current United Health Care rates, still well below national averages.
In order to continue to rein in costs, we will continue to build our reserves to position ourselves for self-funding of our health insurance coverage. Studies have shown that organizations that self-fund can generally save around 10 percent in medical expenses.
Additionally, we will continue to advance our wellness initiatives and disease-management programs. These steps will not only allow us to control costs, but to ensure the health and well-being of our valued employees.
Information on healthcare plans and open enrollment dates will be available by the end of April. In the meantime, mark your calendar for May 6 for the third Annual Road to Wellness Fair. Further details will be published in the April edition of UNM Today.
Story by Helen Gonzales, Vice President for Human Resources
Posted by scarr at February 25, 2008 04:02 PM