The Board of Regents of the University of New Mexico has voted to move the university’s employee health benefits to a self-insurance plan. UNM will continue to offer a three tier design with options to use the LoboCare Network and UNM Hospitals, the Lovelace and Presbyterian tier two network providers and hospitals, as well as out-of-network providers.
These are the same providers and hospitals offered in UNM's current medical plan. However, this strategic move means UNM and employees will see a zero percent increase in health insurance costs for Fiscal Year (FY) 2010.
A significant change for next year is UNM’s prescription drug coverage will be offered through Express Scripts, one of the largest prescription drug carriers in the nation. No matter whether you select Lovelace or Presbyterian, you will receive prescription drug coverage through Express Scripts. This eliminates the confusion and 'middleman' issues that employees currently face.
There is a financial incentive to purchase mail order generic prescriptions for a $10 co-pay, reduced from the current mail order $20 co-pay. However, employees will still be able to obtain prescriptions from retail pharmacies. An additional enhancement is a zero co-pay for diabetic supplies. These changes will result in prescription drug savings to the University of $725,000, a contributing factor to the zero percent increase in health premiums.
The only other plan design change is an increase in emergency room visit co-pays to $150. Helen Gonzales, vice president for Human Resources, says the university will also pursue a strategy of improved urgent care accessibility.
She says the move to self insurance for health benefits will save the university about $1.5 million for FY 2010. This savings will be placed in the insurance reserve fund.
The financial report given to the regents can be found at: UNM Health and Pharmacy Insurance Proposal.
Media Contact: Karen Wentworth, (505) 277-5627; e-mail: kwent2@unm.edu