Mary Jane Smetanka, Star Tribune
June 12, 2004
The University of Minnesota is saving roughly $16 million a year by going to self-insurance rather than staying with the state's health insurance program, a Board of Regents committee was told Thursday.
Last year, the university dropped out of the state plan after 34 years of participation because school officials thought they could save money and offer more health plan choices to employees through a self-designed plan. Annual out-of-pocket costs for employees went up. But the average employee contribution of 20 percent of the cost of their health care premium is less than the 25 percent that the average Minnesotan pays, officials said.
"I would say the program is stable and reaching its goals," said Frank Cerra, the university's senior vice president for health sciences.
To save on drug costs, the school is exploring the possibility of starting its own pharmacy on the Twin Cities campus to serve employees, which Cerra said could yield significant savings.
This year, the cost of self-insurance is projected at almost $124 million, with employees paying about $23 million of that amount in premiums. The total does not include co-pays, deductibles and other out-of-pocket expenses for employees.
As a group, university employees are healthier than the general insured population but have a higher rate of certain ailments because they tend to be older, Cerra said.
The university started offering flu immunizations in the fall, has a campus walking program, and is exploring other ways to emphasize prevention, screening and education, and to reward employees for losing weight, eating well and generally watching their health.
Posted by mpdean at June 12, 2004 10:07 AM