1. The University of North Carolina Today’s Agenda  Cost of Health Care  How the University Compares  Employee Survey Results  Steering Committee  Questions

2. Cost of Health Care  In the U.S., health insurance costs have increased 76% in the last 5 years and employee contributions have increased 126%.  In North Carolina, in the last 5 years, the employer cost under the State Health Plan has increased 98% and the employee cost to cover family members has increased 98%.

3. How the University Compares  UNC pays the full cost of employees’ premiums compared to 91% by other universities.  UNC pays nothing toward dependent coverage. On average, other universities pay 64% of dependent costs. UNC lags behind other universities on the number of dependents enrolled in the plan.  The overall percentage subsidy of 76% is lower than other universities (81%).  UNC requires employees to cover a higher percentage of out- of-pocket costs in terms of deductibles, coinsurance and copays (20% of total costs), compared to other universities (14%).  UNC is the only university to offer only a straight indemnity plan design.

4. UNC Employee Satisfaction Survey Results Compared to other employers:  57.8% of employees are satisfied with their health plan overall (compared to 81.4% at other employers).  92.2% are satisfied with the overall quality of medical care (94.2%).  70.2% are satisfied with the services covered by the plan (84.4%).  35.4% are satisfied with the employee contribution costs (68.2%).  26.1% are satisfied with out-of-pocket costs (59.7%).

5. Improved Health Care Steering Committee  Committee appointed by the UNC President to develop a State Health Plan pilot plan that would be offered in lieu of the current plan for UNC employees and their dependents.  Proposal will be presented to the UNC Board of Governors and, if the Board views it positively, it will be presented to the N.C. General Assembly.  Steering Committee Members include representatives from the State Health Plan, Office of State Personnel, UNC Faculty Assembly, UNC Staff Employee Forum, UNC Health Care System, and UNC campus representation.  Consultant and actuary retained.

6. Questions 1.What is currently not included under the State Health Plan that you would like included? 2.What types of incentives would cause you to engage in healthier behaviors?

7. Questions 3.What information or tools would assist you in making good health care decisions? 4.If you knew your health care costs would be less but the quality of care would be equal if you used a particular group of providers (doctors, hospitals, etc.), would you switch to the low cost provider?

8. Questions 5.One important fact is that a large percentage of the cost is attributed to a small number of State Health Plan participants. Would you be supportive of more proactive alternatives to help manage chronic conditions? 6.What information or incentives would you need to switch to generic drugs if they were available for a particular prescription?

9. THANK YOU!