UNC Improved UNC Improved Health Care Health Care

InitiativeInitiative

UNC Improved Health UNC Improved Health Care InitiativeCare Initiative

Highest priority of UNC HR DirectorsHighest priority of UNC HR Directors Hewitt Health Value Initiative StudyHewitt Health Value Initiative Study Health Care Consultant and Actuary Health Care Consultant and Actuary

retainedretained Establishment of Steering Committee Establishment of Steering Committee Employee Customer Satisfaction Employee Customer Satisfaction

SurveySurvey Campus Community MeetingsCampus Community Meetings

How the University How the University ComparesCompares

• UNC pays the full cost of employees’ premiums compared UNC pays the full cost of employees’ premiums compared to 91% by other universities.to 91% by other universities.

• UNC pays nothing toward dependent coverage. On UNC pays nothing toward dependent coverage. On average, other universities pay 64% of dependent costs.average, other universities pay 64% of dependent costs.• UNC lags behind other universities on the number of UNC lags behind other universities on the number of

dependents enrolled in the plan.dependents enrolled in the plan.• The overall percentage subsidy of 76% is lower than other The overall percentage subsidy of 76% is lower than other

universities (81%).universities (81%).• UNC requires employees to cover a higher percentage of UNC requires employees to cover a higher percentage of

out-of-pocket costs in terms of deductibles, coinsurance out-of-pocket costs in terms of deductibles, coinsurance and copays (20% of total costs), compared to other and copays (20% of total costs), compared to other universities (14%).universities (14%).

• UNC is the only university to offer only a straight UNC is the only university to offer only a straight indemnity plan design.indemnity plan design.

Steering CommitteeSteering Committee

• Committee appointed by the UNC President to Committee appointed by the UNC President to develop a State Health Plan pilot plan that would develop a State Health Plan pilot plan that would be offered in lieu of the current plan for UNC be offered in lieu of the current plan for UNC employees and their dependents.employees and their dependents.

• Steering Committee Members include Steering Committee Members include representatives from the State Health Plan, representatives from the State Health Plan, Office of State Personnel, UNC Faculty Office of State Personnel, UNC Faculty Assembly, UNC Staff Forum, SEANC, UNC Assembly, UNC Staff Forum, SEANC, UNC Health Care System, and UNC campus Health Care System, and UNC campus representation.representation.

• Consultant and actuary retained.Consultant and actuary retained.

UNC Employee Satisfaction UNC Employee Satisfaction

Survey ResultsSurvey ResultsCompared to other employers:Compared to other employers:• 57.8% of employees are satisfied with their health 57.8% of employees are satisfied with their health

plan overall (compared to 81.4% at other employers).plan overall (compared to 81.4% at other employers).

• 92.2% are satisfied with the overall quality of 92.2% are satisfied with the overall quality of medical care (94.2%).medical care (94.2%).

• 70.2% are satisfied with the services covered by the 70.2% are satisfied with the services covered by the plan (84.4%).plan (84.4%).

• 35.4% are satisfied with the employee contribution 35.4% are satisfied with the employee contribution costs (68.2%).costs (68.2%).

• 26.1% are satisfied with out-of-pocket costs (59.7%).26.1% are satisfied with out-of-pocket costs (59.7%).

DriversDrivers

•Cost of Dependent CoverageCost of Dependent Coverage

•More Plan ChoicesMore Plan Choices

•Emphasis on Wellness and Emphasis on Wellness and PreventionPrevention

Cost of Dependent Cost of Dependent CoverageCoverage

•Expansion of dependent coverage tiers: Expansion of dependent coverage tiers: Employee/Only, Employee/Spouse, Employee/Only, Employee/Spouse, Employee/Children, and Employee/Children, and Employee/Family.Employee/Family.

•Employee contributions to vary by Employee contributions to vary by salary band, e.g., $40,000, $40,000-salary band, e.g., $40,000, $40,000-$60,000, $60,000-$100,000, $100,000+. $60,000, $60,000-$100,000, $100,000+.

•Family coverage under the basic plan to Family coverage under the basic plan to cost no more than family coverage cost no more than family coverage provided under the State Health Plan.provided under the State Health Plan.

Plan ChoicesPlan Choices

• Multiple plan options (3-4) to be offered Multiple plan options (3-4) to be offered from which employees may choose.from which employees may choose.

• Basic (core) PPO option at no cost to the Basic (core) PPO option at no cost to the employee that would be similar in value employee that would be similar in value to the State Health Plan.to the State Health Plan.

• Additional options that would allow an Additional options that would allow an employee to buy up improved benefits.employee to buy up improved benefits.

• Alternatives may include a “network Alternatives may include a “network only” option using deeper discounted only” option using deeper discounted networks and a “consumer-driven” networks and a “consumer-driven” option featuring a higher deductible with option featuring a higher deductible with a first dollar spending account (Health a first dollar spending account (Health Reimbursement Account).Reimbursement Account).

Wellness and PreventionWellness and Prevention

• Improve preventive care benefit.Improve preventive care benefit.

•Have office visits only subject to copay Have office visits only subject to copay (not the deductible and coinsurance).(not the deductible and coinsurance).

•Make available additional options that Make available additional options that would allow an employee to buy up would allow an employee to buy up coverage.coverage.

•Provide comprehensive Provide comprehensive disease/condition management and disease/condition management and wellness program.wellness program.

Approval ProcessApproval Process

• Approved by UNC Board of Approved by UNC Board of Governors on February 11, 2005, Governors on February 11, 2005, for inclusion on the University’s for inclusion on the University’s 2005 Non-Budget Legislative 2005 Non-Budget Legislative AgendaAgenda

• General AssemblyGeneral Assembly• GovernorGovernor