August 5, 2022

Purdue trustees approve 2023 health plans: no employee premium increase for fourth straight year; all enrolled employees to receive appreciation payment

FORT WAYNE, Ind. — The Purdue University Board of Trustees on Friday (Aug. 5) approved 2023 health plans, which will have no employee premium increase for the fourth straight year. The plans for 2023 align with the university’s strategic approach to health care and the Healthy Boiler Program initiative, and they were designed as part of the ongoing pursuit of improving population health and controlling overall costs for employees and the university.

Additionally, in appreciation for their actions to establish Purdue as a leader in delivering high-quality benefits with innovative population health solutions at the lowest possible costs, all employees enrolled in a Purdue medical plan will receive a cash payment later this year equal to two months of the average employee premium – an estimated cost of $2.4 million.

Updates for the 2023 plan year will be:

  • Launching a national Centers of Excellence with Carrum Health for specific bundles of care, such as bariatric, musculoskeletal, cardiac care and sports medicine. By connecting members with the top 10% of providers nationwide, Carrum can deliver correct care from the best providers, predictable and immediate savings for members and the university, and higher member satisfaction.
  • Expanding the operation of the Center for Healthy Living at the Purdue Northwest campus. While the university will incur implementation and short-term costs, long-term savings for engaged members and the university are expected as well as improved population health.
  • Implementing a colonoscopy direct agreement with a preferred provider.
  • Launching a telehealth pilot through the Center for Healthy Living. With the increase in remote and hybrid employees, access to quality acute care can be critical to help reduce unnecessary urgent or emergency care visits. Pending a successful pilot – population health, savings to employees and positive satisfaction – this program will be expanded to all members.
  • Releasing and implementing a medication therapy management (MTM) network direct agreement, in partnership with the College of Pharmacy. The goal of MTM is to optimize outcomes for an individual while preventing medication-related adverse reactions.
  • Increasing single coverage ($50) and family coverage ($100) deductibles based on IRS requirements.
  • Four-year contract renewal with CVS Caremark, a prescription benefit manager, based on the Indiana Aggregate Prescription Plan Program RFP. Estimated savings are to be determined.
  • Premium rates for early retirees will increase by 5% – affecting approximately 250 early retirees who are on medical plans.

Collectively, these recommendations are expected to produce an annual savings of $1.7 million when fully implemented.

Overall university cost increases will continue to be significantly less than the national average. According to data from PricewaterhouseCoopers, the national average for university health care has grown nearly 6% annually since 2017, while Purdue has seen only an average increase of 0.3% annually.

Some 65% of employees are engaged in HealthSync, a groundbreaking network of high-performing health care providers dedicated to personalized, value-based care. The result has been a savings of $10.4 million since its implementation in 2020 through July 31, 2022. Purdue will continue evaluating options to further expand this network and incentivize the use of HealthSync network providers.

Purdue’s focus on population health has resulted in the following increases in employee screenings: physical (57% in 2021 vs. 39% in 2017), mammogram (68% in 2021 vs. 52% in 2017) and colonoscopy (53% in 2021 vs. 28% in 2018).

In May, Purdue announced a partnership with Ascension St. Vincent to build a neighborhood hospital in the Discovery Park District at Purdue – the first development of what will become a larger medical complex on campus that will focus mainly on outpatient care.

Employees will begin to receive information related to open enrollment 2023 via email the week of Aug. 9 and will continue to receive information about enrollment, benefit changes and more throughout the next few months via mailings to their homes, email and virtual newsletters from Purdue Benefits and Purdue Today.

Open enrollment for 2023 will take place beginning Oct. 25 and continuing through 6 p.m. ET on Nov. 8. Employees are encouraged to evaluate all medical plan options and other benefits to ensure that they are selecting the best option for themselves and their family.

About Purdue University

Purdue University is a top public research institution developing practical solutions to today’s toughest challenges. Ranked in each of the last four years as one of the 10 Most Innovative universities in the United States by U.S. News & World Report, Purdue delivers world-changing research and out-of-this-world discovery. Committed to hands-on and online, real-world learning, Purdue offers a transformative education to all. Committed to affordability and accessibility, Purdue has frozen tuition and most fees at 2012-13 levels, enabling more students than ever to graduate debt-free. See how Purdue never stops in the persistent pursuit of the next giant leap at

Source: Candace Shaffer,

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