UNC Improved Health
Care Initiative
UNC Improved Health
Care Initiative
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Highest priority of UNC HR Directors
Hewitt Health Value Initiative Study
Health Care Consultant and Actuary retained
Establishment of Steering Committee
Employee Customer Satisfaction Survey
Campus Community Meetings
How the University Compares
• UNC pays the full cost of employees’ premiums compared to
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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 outof-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.
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.
• Steering Committee Members include representatives
from the State Health Plan, Office of State Personnel,
UNC Faculty Assembly, UNC Staff Forum, SEANC,
UNC Health Care System, and UNC campus
representation.
• Consultant and actuary retained.
UNC Employee Satisfaction
Survey Results
Compared to other employers:
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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%).
Drivers
• Cost of Dependent Coverage
• More Plan Choices
• Emphasis on Wellness and Prevention
Cost of Dependent Coverage
• Expansion of dependent coverage tiers:
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Employee/Only, Employee/Spouse,
Employee/Children, and Employee/Family.
Employee contributions to vary by salary
band, e.g., $40,000, $40,000-$60,000, $60,000$100,000, $100,000+.
Family coverage under the basic plan to cost
no more than family coverage provided under
the State Health Plan.
Plan Choices
• Multiple plan options (3-4) to be offered from
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which employees may choose.
Basic (core) PPO option at no cost to the employee
that would be similar in value to the State Health
Plan.
Additional options that would allow an employee to
buy up improved benefits.
Alternatives may include a “network only” option
using deeper discounted networks and a “consumerdriven” option featuring a higher deductible with a
first dollar spending account (Health
Reimbursement Account).
Wellness and Prevention
• Improve preventive care benefit.
• Have office visits only subject to copay (not
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the deductible and coinsurance).
Make available additional options that would
allow an employee to buy up coverage.
Provide comprehensive disease/condition
management and wellness program.
Approval Process
• Approved by UNC Board of Governors on
February 11, 2005, for inclusion on the
University’s 2005 Non-Budget Legislative
Agenda
• General Assembly
• Governor