2008 Woodie Awards
Insurance rates increase
Ball State pays 75% of health costs, employees pay 25%
Amanda Getchel
The Board of Trustees voted in its March 21 meeting that health insurance rates will increase about 3 percent, while some premiums will decrease.
Thomas Kinghorn, vice president for Business Affairs, said Ball State University was a self-insured institution so the claims experience drove the decision on what increased and what decreased.
Claims experience are the costs associated with medical care. Kinghorn gave the example of a student who might get in an accident and the doctor would prescribe medications and possibly a hospital visit or prolonged care.
Those costs would be paid for by the student's parents' medical plan, he said. A student's family and others on the plan have claims experience where all the costs are added from everybody's care.
"So when I talk about claims experience I mean the cost associated with all the medical care that's provided to each of those several groups of employers," Kinghorn said.
When the new fiscal year begins in July, employees enrolled in the traditional family medical plan will contribute an additional $47.20 or 7 percent per month to participate. Single employees enrolled in the traditional health care coverage plan will contribute an additional $18.18 per month.
Ball State's portion of each employee's monthly health insurance costs will increase $141.60 for family coverage and $54.55 for individual coverage.
Employees enrolled in Ball State's low deductible, preferred provider organization insurance, will have increased premiums of 3 percent per month. That amounts to increases of $11.82 per month for family PPO participants and $4.56 per month for single PPO participants.
Kinghorn said about 90 percent of university employees use the PPO insurance. With the PPO, employees have a network of doctors and hospitals they can choose from, he said. The traditional plan allows employees to choose any provider they wish.
Employees also have the option to be covered by two high deductible insurance plans. Families enrolled in the wellness plan will have a 3 percent drop in premiums or about $9 a month. Single participants will save $3.36 a month. Families enrolled in the health savings account will see a 10 percent decrease in premiums or about $23 a month. Single participants will see a decrease of more than $8 per month.
Thomas Kinghorn, vice president for Business Affairs, said Ball State University was a self-insured institution so the claims experience drove the decision on what increased and what decreased.
Claims experience are the costs associated with medical care. Kinghorn gave the example of a student who might get in an accident and the doctor would prescribe medications and possibly a hospital visit or prolonged care.
Those costs would be paid for by the student's parents' medical plan, he said. A student's family and others on the plan have claims experience where all the costs are added from everybody's care.
"So when I talk about claims experience I mean the cost associated with all the medical care that's provided to each of those several groups of employers," Kinghorn said.
When the new fiscal year begins in July, employees enrolled in the traditional family medical plan will contribute an additional $47.20 or 7 percent per month to participate. Single employees enrolled in the traditional health care coverage plan will contribute an additional $18.18 per month.
Ball State's portion of each employee's monthly health insurance costs will increase $141.60 for family coverage and $54.55 for individual coverage.
Employees enrolled in Ball State's low deductible, preferred provider organization insurance, will have increased premiums of 3 percent per month. That amounts to increases of $11.82 per month for family PPO participants and $4.56 per month for single PPO participants.
Kinghorn said about 90 percent of university employees use the PPO insurance. With the PPO, employees have a network of doctors and hospitals they can choose from, he said. The traditional plan allows employees to choose any provider they wish.
Employees also have the option to be covered by two high deductible insurance plans. Families enrolled in the wellness plan will have a 3 percent drop in premiums or about $9 a month. Single participants will save $3.36 a month. Families enrolled in the health savings account will see a 10 percent decrease in premiums or about $23 a month. Single participants will see a decrease of more than $8 per month.
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