A meeting of the Finance Committee of the Board of Trustees convened at 9:12 a.m. on Friday, August 4, 2023, in Room 326 of Stewart Center on the campus of Purdue University in West Lafayette, Indiana.

Committee members present: Michael Klipsch, Chair; Sonny Beck; Malcolm DeKryger; Gary Lehman; and Shawn Taylor. Other trustees present: Michael Berghoff; Kevin Boes; JoAnn Brouillette; Vanessa Castagna; and Theresa Carter.

Officers and administrators in attendance were: Mung Chiang, president; Patrick Wolfe, provost and executive vice president for academic affairs and diversity; Chris Ruhl, chief financial officer and treasurer; Eva Nodine, senior vice president, assistant treasurer, and assistant secretary; Steve Schultz, general counsel; and Cindy Ream, corporate secretary and senior executive assistant to the Board.

I. APPROVAL OF MINUTES

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to approve the minutes of its Executive Session convened July 28, 2023.

II. APPROVAL OF CY UNIVERSITY HEALTH PLANS

Trustee Klipsch invited Ms. Candace Shaffer, associate vice president, benefits, and payroll, to update the Committee on the University Health Plan. Ms. Shaffer noted that she would be bringing several recommendations to the Board for approval for 2024. She shared work continues towards the plan to improve population health, control overall costs, and achieve the Board target of 70/30 cost share. She provided background along with an overview. She noted there was a slight increase in participant numbers but not very notable and mentioned the breakdown of coverage with the majority being single coverage at 49%. Ms. Shaffer mentioned that most participants, 51%, utilize the Premier plan which is the lowest risk/highest premium plan. Ms. Shaffer commented the best fact to share for 2022 was that 60% of the adults in the plan completed their annual physical which is the highest percentage of completion since the implementation of the Healthy Boiler Incentive program in 2018, up 3% from the previous year. Ms. Shaffer expanded on the cost share for 2022 broke down to Purdue 74%/Employee 26% and provided a summary of the expenditures. The projected spend for 2023 breaks down to $29.9m for employees and $155m for Purdue.

Ms. Shaffer reviewed the benefit changes over time and shared some successes because of the changes. She noted increased annual screening compliance for physicals, mammograms, and colonoscopies, stating that the added monetary incentives had paid off. She reported that 59% Purdue members engaged in HealthSync and noted a savings from 2020 implementation through June 2023 of $22.3m. Ms. Shaffer mentioned the Center for Healthy Living is the most cost-efficient primary care provider in our network and has the highest physical compliance for over 3700 employees and spouses attributed. She noted savings of almost $20m since implementation in 2017. Ms. Shaffer reported that Purdue continues to buck the trend nationally and has cumulatively saved the University over $148.5m and employees over $49.5m.

Ms. Shafer presented recommendations for the 2024 medical plan with some modest changes and adding some programs to support employees and families. For the fifth year in a row, no employee premium increase, however it would include a 5% increase in retiree premiums. She noted a modest increase in deductible and out of pocket maximums on all three plans. She shared some of that was due to IRS regulations and needing to increase the minimums. She noted there has been no increase since 2019. She shared the launch of systemwide Telehealth Program and Healthcare Navigation Program with the Center for Healthy Living. She shared the communication and engagement avenues continue to be utilized.

In closing Ms. Shaffer requested approval for the University Health Plans.

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to recommend full Board approval of the 2024 University Health Plans. A copy of the presentation and supporting documents were filed with the minutes.

III. RATIFICATION OF DISTRIBUTIONS SUPPORTING KRACH INSTITUTE FOR TECH DIPLOMACY AT PURDUE*

General Counsel, Steve Schultz requested the Board’s ratification of the University’s commitment to provide up to $10m in matching funds for third-party gifts benefitting Krach Institute for Tech Diplomacy at Purdue (“KITDP”) to support its mission and operations.

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to recommend full Board approval of the Distributions Supporting Krach Institute for Tech Diplomacy at Purdue. Supporting documents were filed with the minutes.

By consent, the meeting adjourned at 9:37 a.m.