Trustees approve 2014 medical plans, premiums

July 19, 2013  

WEST LAFAYETTE, Ind. - The Purdue Board of Trustees on Friday (July 19) approved the university's 2014 medical plans and premiums.

Trustees approved recommendations provided by Purdue Human Resources to replace the university's current plans with three new options: two high-deductible plans that qualify for a tax-free health savings account (HSA) and one lower-deductible plan that does not include an HSA.

Human Resources developed the medical plan recommendations in consultation with Purdue's Health Care Strategy Committee, a group of faculty and staff charged with bringing forward short-term and long-term solutions for rising health-care costs.

"The plans for next year have been designed to provide high-quality, affordable medical insurance, while encouraging employees to be better health-care consumers," said Luis E. Lewin, vice president for human resources. "Being better consumers will help reduce or curb expenses to the medical plans, which is important to all of us. Purdue is self-insured, so we foot the bill for all of our own medical claims."

Human Resources worked with Mercer, a human resource consulting firm, to develop its premium recommendations. The premiums are based on projected 2014 claims and the need to meet the trustees' prescribed 80/20 premium split between the university and its faculty and staff.

Under the approved premiums, many employees who enroll in one of the high-deductible plans will see a decrease in premiums in 2014. All employees enrolling in the highest-deductible plan will have lower premiums next year.

Individuals covering just themselves, regardless of earnings, will not pay a premium under the new Purdue Health Plan Plus HSA 2.

Employees who cover a spouse/same-sex domestic partner or family and enroll in the lower-deductible choice without an HSA will see an increase in their premiums.

Purdue will continue its two-tier medical premium arrangement, which offers lower premiums for employees earning under $44,000 a year.

"Purdue will continue to work with our faculty and staff to find ways to keep medical plan costs affordable," Lewin said. "We're having discussions with employee groups, providing tools to help us be better consumers, such as the Castlight health shopping service, and working to get the best pricing and best discounts for our plans."

Writer: Valerie O'Brien, 765-494-9573, 

Source: Luis E. Lewin, 494-7395,

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