Augustana Benefits Committee

1. Augustana Benefits Committee Spring 2012 Campus Discussions

2. The Good News… • 18 months of self-insured experience • Better service & vendor relationship • Plan performance better than estimated • 100% Wellness coverage • Increase in wellness visits • Increase in flu shots & wellness testing • Should create early intervention & decreased costs to the plan • Plan participants continue to be good consumers • Generic Incentive Program • In-network providers utilized • Referral program for specialized care • Addition of Voluntary Dental Benefit

3. On the Horizon… • Unknown effects of healthcare reform • Changes to our participant profiles • Effects from increased wellness activities and spending • Changes in the Quad City Health Care profile.

4. Role of the Benefits Committee • Evaluate performance of the plan and suggest changes • Listen to campus community & suggest changes. • Look for the best return for the college’s investment • Representatives • Faculty: Tenured & non-tenured • Administration: HR & non-HR • Staff: Dining, Facilities, Support

5. Topics We Want to discuss • Cost of single vs. family insurance • Thoughts on Wellness as a way to control costs. • Possible plan enhancements • Voluntary Life buy-up • 65+ Health Plan • Your feedback on current plan and possible changes.

6. Costs at our peer Institutions

7. Cost at our peer Institutions

8. No Easy Answers • Prospect of raising cost of single coverage • Larger impact on those at lower end of earnings scale • May cause those with double coverage to drop the Augustana Plan. • May be unaffordable to some • Would allow us to divert premiums to assist in family coverage. • Thoughts?

9. No Easy Answers • Prospect of lowering cost of family coverage • May help with recruitment – particularly of faculty members. • May allow others to join the plan. • Would require higher cost for single coverage. • Moves the group of unhappy people • Thoughts?

10. No Easy Answers • Wellness Incentive Pricing • Should there be different pricing for employees that participate in some level of wellness activity? • Wellness screenings • Weight loss or exercise/fitness participation • Other things that would incent healthy choices? • Thoughts?

11. No Easy Answers • Tiered Benefits • Different pricing based on earnings • One amount if you earn less than $X/year • Higher amount if you earn more than $X/year • Doesn’t take into account overall family earnings • May adversely affect those near the “break point” • Thoughts?

12. No Easy Answers • 2nd Alternative within our plan • Lower cost coverage with lower benefits? • Higher deductible ($5,000 per family) with lower price • Smaller or limited pool of providers • Health Savings Account model • Thoughts?

13. Other Benefits Ideas • Voluntary “buy-up” of life insurance • Currently 1.5 times your annual salary • Buy the amount you want without underwriting • Take advantage of large group discount • Additional health care choice for active employees age 65+ • Would act as a Medicare supplement • Employees could keep this coverage at their own expense when they leave.

14. Other Ideas or Questions? Thanks for your time and input!