Board approves premium increases, plan design changes for 2013

The Purdue Board of Trustees approved 2013 medical plan changes and employee premiums at its Friday (Oct. 12) meeting.

Employee medical plan premiums will increase by the following percentages next year:

* Choice Fund with Health Savings Account (HSA) -- 15 percent.

* Purdue Incentive -- 25 percent.

* Purdue Copay -- 30 percent.

The percentage increases will apply to both salary tiers (under $44,000 and $44,000 or more).

The University will continue its plan to reach a medical premium arrangement where Purdue pays 80 percent and employees pay 20 percent by 2014. In 2013, the University projects, its portion of total contributions to the medical plans will be 83 percent, with employees, retirees, COBRA participants, and employees on disability contributing 17 percent. The 2012 split is projected to be 85/15.

Key plan design changes the board approved include:

* Higher University HSA contributions for the Choice Fund medical plan: Purdue will contribute an extra $100 for employee-only coverage and $200 when an employee covers one or more dependents. This contribution will be made in early January and will be in addition to the $650 employee-only or $1,300 employee plus dependent(s) contribution that Purdue will make over the course of 2013.

* $10 office visits at the Center for Healthy Living: Purdue Incentive and Purdue Copay participants will have a no-deductible, $10 copay for office visits at the future Center for Healthy Living. Due to regulations governing high-deductible medical plans, Choice Fund with HSA participants will pay fair market value.

The center will provide preventive, wellness and health coaching services at no charge to employees and dependents on all three medical plans. The employee health center is planned to open in February.

The board reaffirmed last year's decision to increase the tobacco-user additional premium on medical insurance to $500 per person per year. Tobacco users who complete an approved cessation program between Sept. 1 and Nov. 16 will qualify for a waiver of the additional premium. Information about approved cessation programs is available at www.purdue.edu/worklife.