Changes to Ohio University's health care plan have some employees up in arms because of increased out-of-pocket expenses that will take effect this summer.
Faculty members from the E.W. Scripps School of Journalism passed a resolution Wednesday calling for a rollback of the scheduled changes. The journalism faculty claims that OU had a surplus of $11 million in health care costs from last year and used that money to cover budget shortfalls rather than save it for increases in the cost of coverage.
These changes are pretty brutal and unjustified
journalism professor Bernhard Debatin said. He said the changes will cost him and his family about $1,500 more next year through increased premiums and deductibles. Debatin, his wife and two children currently pay a $200 deductible before insurance covers their expenses. Beginning July 1, that figure will be $600 annually.
Ohio University is self-insured, but Medical Mutual of Ohio administers the health care plan. We pay them to act as an insurance company except we pay the claims said Greg Fialko, OU benefits director. The money OU collects in premiums is put into the health care budget, which pays claims to employees.
Under the new plan, employees will have more money taken from each paycheck for premiums and pay more expenses out-of-pocket before insurance coverage begins. The spouses of OU employees also will be required to join their own employer's health plan in some cases and pay extra to be covered by OU.
Craig Mehr, who works in the accounting unit at Alden Library, said the increased health care costs will eliminate the 2 percent raise he received last year. Under the current plan, Mehr pays $21.30 out of his bi-weekly paycheck to cover himself and his wife. Starting July 1, Mehr will pay $27.86 each paycheck; however, his wife now is required to join the program offered at her workplace. He estimated that their combined premium will now be close to $60 every two weeks.
My wife has to work so we can have a house
Mehr said. He said by requiring spouses to join their employer's plan, OU unfairly punishes lower-salaried employees whose spouses must work. If Mehr's partner were unemployed, she would be covered by his plan and would not have to pay an additional premium from another employer.
According to University Human Resources, beginning July 1, if the spouse of an OU employee has access to a separate health plan that covers 50 percent of health care costs, than that spouse must enroll in their employer's program to be eligible for coverage under the OU plan. The OU plan covers at least 80 percent of costs.
Fialko said rising health care costs have led to the increased premiums. Before 1998, employees received coverage without payment from each paycheck. What we're struggling with is what every large employer in the country is dealing with
he said.
University Human Resources attributes the rising costs to inflation, more expensive treatments and increased demand for services, among other factors.
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Kevin Ziegler
