Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 309]

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298

BOARD OF TRUSTEES

June 18

In order to provide faculty and staff members an opportunity to maintain a level of benefits for their dependents essentially equal to that Currently offered, the University requested bids for a University plan which would provide coverage in excess of the State's Low Option Plan. For FY 1982, the State's Low Option Plan for dependents will not provide adequate financial protection against major/ catastrophic medical conditions as measured by the loss of cost limits in areas such as surgical benefits where only 80 percent of all customary charges will be covered. By contrast, the State's High Option Plan (the program under which all employees are covered unless they opt for a Health Maintenance Organization Plan) will provide a stop-loss limitation of $1,000 per year to insure that out-ofpocket expenses for the employee, including all deductibles, will not exceed that level. T h e proposed University excess health insurance plan would limit the outof-pocket expense for deductibles, coinsurance, and eligible hospital expenses to $500 each policy year for each dependent for whom the employee has selected the State's Low Option Plan. Participation in the University plan for dependents would be voluntary. T h e University's Benefit Centers would process claims with the total cost of the premium and the cost of administration paid by the employee. T h e only bid received for the excess insurance plan was submitted by the Continental Assurance Company, Chicago; the premium quoted appears to be reasonable for the coverages to be provided. This proposal was reviewed and endorsed by a committee appointed by the executive vice president and included representatives from the faculty, administrative, professional, and nonacademic employees for the three campuses. In reviewing all aspects of the health insurance program, the committee has also recommended that the University give consideration in the immediate future to seeking coverage for employees that is similar to the University's excess insurance plan for dependents now being recommended. T h e following table presents the monthly charges for the excess health insuranceplan: Administrative Cost Premium Total One Dependent $ .50 $6.00 $ 6.50 Two or More Dependents 1.00 9.00 10.00 T h e executive vice president recommends that the board authorize a contract with the Continental Assurance Company for the excess comprehensive group health insurance plan on the terms and rates described above. If approved, the program will become effective July 1, 1981. I concur.

On motion of Mr. Howard, this recommendation was approved by the following vote: Aye, Dr. Donoghue, Mr. Forsyth, Mr. Hahn, Mr. Howard, Mr. Madden, Mr. Neal, Mrs. Shepherd, Mr. Stone; no, none; absent, Mrs. Day, Governor Thompson. (The student advisory vote was: Aye, Mr. Maltese, Mr. Peterson, Mr. Silverman; no, none.)

Report of Purchases Approved by the Executive Vice President

(38) T h e executive vice president also submitted a report of purchases approved by him on recommendation of the directors of purchases in amounts of $20,000 to $25,000. A copy of this report is filed with the secretary.

This report was received for record.