Trustees approve 2027 health plans with no premium increase for employees

WEST LAFAYETTE, Ind. — The Purdue University Board of Trustees on Friday (Aug. 7) approved 2027 health plans that will feature no premium increases for employees and long-term disability members — after back-to-back years of increases. The plans align with the university’s strategic approach to healthcare and the Your Path Wellness Program, and they were designed as part of Purdue’s ongoing goal of improving population health.

Purdue’s health plans are stable and highly competitive in comparison with peer institutions while continuing to provide comprehensive benefits to the university’s employees and their families.

“Purdue remains committed to balancing affordability for employees with responsible financial stewardship,” said Amy Boyle, Purdue vice president for human resources. “At the same time, benefit communications continue to emphasize preventive care, wellness incentive participation and the many resources available to help employees navigate the healthcare system.”

According to data from PricewaterhouseCoopers, the national average for healthcare costs is growing at approximately 8% annually, while Purdue has seen an average annual increase of 3.3%. Based on claims through May 2026, Purdue healthcare expenses for 2026 are projected to be 3.6% lower than in 2025.

Purdue is committed to actively managing its self-funded health plan through strategic plan design, provider and vendor partnerships, and population health initiatives. Over the last several years, the university has invested in programs that improve health outcomes while reducing unnecessary healthcare spending, including the Center for Healthy Living, HealthSync, Carrum Health, direct provider agreements and expanded navigation resources. In addition to positioning Purdue favorably against national healthcare trends, these initiatives continue to improve the healthcare experience for employees and their families.

While medical spending has been relatively well managed during 2026, prescription drug costs, particularly traditional (non-specialty) pharmacy spending, have risen substantially. Since January 2025, Purdue has implemented several important pharmacy initiatives, including transitioning to a new pharmacy benefit manager, gaining greater control over formulary management and member cost sharing, and establishing a direct agreement with Eli Lilly and Company to provide Zepbound at a substantially lower cost. Like employers nationwide, Purdue continues to experience increasing demand for GLP-1 medications used to treat obesity through the university’s weight management program.

Population health has been a focus at Purdue since 2017, when the university launched what is now the Wellness Incentive Program, which provides monetary incentives for health savings accounts or health reimbursement arrangements to employees who complete their annual physical, biometrics and other wellness activities. In 2025, 67% of employees and covered spouses completed their annual physical. Purdue outperforms Anthem’s Indiana benchmark in 17 of 20 preventive care compliance measures.

Providing the foundation for the university’s benefits package, the Your Path Wellness Program takes a comprehensive approach to overall health and wellness through its five pillars: behavioral health, financial wellness, physical health, social wellness and work-life integration.

In 2026, Purdue has been recognized among the Healthiest Employers of Indiana, an awards program created to honor people-first organizations that prioritize the well-being of their employee population, and as a platinum recipient of the Bell Seal for Workplace Mental Health, a national certification program recognizing employers committed to creating mentally healthy workplaces. The university also has received a 5-Star AchieveWELL designation, the Wellness Council of Indiana’s workplace wellness assessment, evaluation and recognition program — with badges for ending weight bias and being a breastfeeding friendly workplace.

Highlights of the 2027 health plan updates include:

• No premium increase for employees and long-term disability members — after two years of premium increases.
• A modest increase of deductibles and out-of-pocket maximums on all three consumer-driven health plans to meet IRS requirements.
• Renew Delta Dental contract with a premium increase for 2027 and no premium increase for 2028. (Purdue will continue to provide preventive dental at no cost to employees and their covered family members as well as the preventive cost portion of the two other plan options.)
• Renew current specialty pharmacy contract with Archimedes that is cost neutral for 2027, with a modest yearly fee increase of 1.5% for 2028 and 2029.
• Enhance voluntary hospital indemnity benefit for parents or aspiring parents with the comprehensive BenefitBump program, supporting enrolled employees.
• Reduce employee eligibility for paid parental leave from 12 to six months, providing earlier access to this benefit.
• Improve nonexempt sick leave program by allocating time upon hire and annually on Jan. 1, providing nonexempt employees with earlier access to paid sick leave and greater flexibility.
• Addition of the voluntary benefit Aura, a digital security benefit that combines identity protection, fraud monitoring, cybersecurity tools and privacy services into one platform for employees and their family members.
• Premium rate increase of 5% for early retirees, affecting approximately 115 individuals who are on health plans.

Employees will begin to receive information related to open enrollment 2027 via email the week of Aug. 24. Communication will continue, focusing on changes and how all benefit programs support overall health and well-being.

Open enrollment for 2027 will begin Oct. 27 and continue until Nov. 10. Support will be available via presentations, one-on-one counseling, an online guide and a dedicated website. Employees are encouraged to evaluate all plan options and other benefits to ensure they are selecting the best option for themselves and their families.

Purdue annually provides employees with a total rewards statement to demonstrate the university’s commitment to providing a full salary and benefits package. In evaluating the offer of benefits, the university elected to leave all the following in place:

• Retirement plans
• Paid holidays, vacation and sick leave
• Reduced class fees for employees and their family members
• Discounts at local and national businesses
• Reduced fees or use privileges at recreational sports facilities and fitness centers

About Purdue University

Purdue University is a research institution ranked among the top 10 public universities in the United States. More than 106,000 students study at Purdue across multiple campuses, including more than 57,000 at our main campus locations in West Lafayette and Indianapolis. As a land-grant university committed to affordability and accessibility, Purdue’s main campus has frozen tuition 14 years in a row, enabling more students than ever to graduate debt-free.