Purdue trustees approve 2023 health plans: no increase in employee premiums for fourth straight year.  all registered employees to receive appreciation pay

Purdue trustees approve 2023 health plans: no increase in employee premiums for fourth straight year. all registered employees to receive appreciation pay

FORT WAYNE, Ind. — The Purdue University Board of Trustees on Friday (Aug. 5) approved health plans for 2023 that will see no increase in employee premiums for the fourth year in a row. The 2023 plans align with the university’s strategic approach to health care and the Healthy Boiler Program initiative and were designed as part of the ongoing pursuit to improve population health and control overall costs for employees and the university.

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

Updates for the 2023 program year will be:

  • Establishing national Centers of Excellence with Carrum Health for specific bundles of care such as bariatrics, musculoskeletal, cardiac care and sports medicine. By connecting members with the top 10% of providers nationally, Carrum can deliver the right care from the best providers, predictable and immediate savings for members and the university, and higher member satisfaction.
  • Expanding the Center for Healthy Living on the Purdue Northwest campus. While the university will incur implementation and short-term costs, long-term savings to members and the university, as well as improved population health, are expected.
  • Implement a direct colonoscopy agreement with a preferred provider.
  • Launch of telehealth pilot through Center for Healthy Living. With the rise of remote and hybrid workers, access to quality acute care can be critical to reducing unnecessary urgent or urgent care visits. Pending a successful pilot – population health, employee savings and positive satisfaction – this program will be extended to all members.
  • Issuance and implementation of a direct medication therapy management (MTM) network agreement, in collaboration with the College of Pharmacy. The goal of MTM is to optimize outcomes for an individual while preventing medication-related side effects.
  • Increase the deductibles for single coverage ($50) and family coverage ($100) based on IRS requirements.
  • Four-year contract renewal with CVS Caremark, a prescription benefits administrator, based on the Indiana Comprehensive Prescription Drug Program RFP. Estimated savings to be determined.
  • Premium rates for early retirees will increase by 5% – affecting about 250 early retirees who are on medical plans.

Collectively, these recommendations are expected to result in 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 percent annually since 2017, while Purdue has seen only an average increase of 0.3 percent annually.

Approximately 65% ​​of employees are engaged with HealthSync, an innovative network of high-performing healthcare providers dedicated to value-based, personalized care. The result was a savings of $10.4 million from its implementation in 2020 through July 31, 2022. Purdue will continue to evaluate options to further expand this network and incentivize the use of HealthSync network providers.

Purdue’s focus on population health resulted in the following increases in employee screenings: physicals (57% in 2021 vs. 39% in 2017), mammograms (68% in 2021 vs. 52% in 2017), and colonoscopies (53% in 2017). 2021 versus 28% in 2018).

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

Employees will begin receiving information about 2023 open enrollment via email the week of August 9, and will continue to receive information about enrollment, benefit changes and more over the coming months via home mail, email and virtual newsletters from Purdue Benefits and Purdue Today.

Open enrollment for 2023 will take place starting October 25 and will continue until 6 p.m. ET on November 8. Employees are encouraged to evaluate all medical plan options and other benefits to ensure they are selecting the best option for themselves and their family.

About Purdue University

Purdue University is a leading public research institution developing practical solutions to today’s toughest challenges. Ranked each of the last four years as one of the 10 most innovative universities in the United States by US News & World Report, Purdue offers world-changing research and out-of-this-world discovery. Committed to real-world hands-on and online 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 its relentless search for the next giant leap at https://stories.purdue.edu.

Source: Candace Shaffer, [email protected]

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