Resolution 17-04. Concerning the Impact of Rising Benefit Costs on Recruitment and Retention

 

RESOLUTION OF THE EMPLOYEE FORUM

THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL

 

November 1, 2017

 

WHEREAS, the annual enrollment process for the State Health Plan has recently concluded and all employees across the University will incur a steep increase in out-of-pocket health insurance costs, monthly premiums, and deductibles in 2018;

 

WHEREAS, the Consumer-Directed Health Plan option has been eliminated, giving Carolina employees fewer health insurance options to meet their individual needs[1];

 

WHEREAS, only the more expensive 80/20 plan covers Affordable Care Act preventative health services and maternity services at no additional cost in the monthly premium[2];

 

WHEREAS, since 2015, the annual deductible for the State Health Plan’s 80/20 plan has increased from $700/individual and $2,100/family[3] to $1,250/individual and $3,650/family[4]; while monthly premiums have increased from $15 (with premium discount) to $50 (with premium discount);

 

WHEREAS, since 2015, the deductible for the Traditional 70/30 plan has increased from $933/individual and $2,799/family[5] to $1,080/individual and $3,240/family;[6] while monthly premiums have increased from $0[7] to $25 (premium discount)[8];

 

WHEREAS, the monthly expense of insuring a spouse on either the 80/20 plan or Traditional 70/30 plan at $700 (with premium discount) and $590 (with premium discount) respectively is untenable for most of our staff;

 

WHEREAS, increases in health insurance costs have exceeded annual raises for many SHRA staff for each of the last two years,[9] and the increase in health insurance expenses have exceeded the raises for many EHRA non-faculty staff for each of the last two years[10];

 

WHEREAS, the increasing financial strain on employees causes many to look outside the University for employment;

 

BE IT RESOLVED, that the Employee Forum requests that the Chancellor of the University of North Carolina at Chapel Hill and her administration send representatives to meet with the State Health Plan Board to relay concerns about rising costs;

 

BE IT RESOLVED, that the Employee Forum requests that the Chancellor of the University of North Carolina at Chapel Hill and the Office of Workforce Strategy, Equity and Engagement create a working group charged with evaluating the rising out-of-pocket expenses for all employees and its impact on employee recruitment, retention and satisfaction;

 

BE IT RESOLVED, that the Employee Forum requests that the working group, as part of its charge, redevelop a mandatory (as far as feasible) campus-wide exit interview survey instrument that measures satisfaction with climate, benefits and compensation, and requests information about reasons for leaving;

 

BE IT FURTHER RESOLVED, that the Employee Forum requests that the working group report to the Employee Forum a calendar year after convening to receive input on its findings and each year hence to report its findings.

 

Signed on behalf of the Employee Forum,

 

Shayna Hill,

Chair

 

[1] Source: https://shp.nctreasurer.com/Medical%20Benefits/2018%20Member%20OE%20Presentation.pdf

[2] Source: https://shp.nctreasurer.com/Medical%20Benefits/2018%208020%20Plan%20Preventive%20Care%20Chart.pdf

[3] For in-network. Source: http://www.ncpublicschools.org/docs/fbs/conferences/presentations/summer15/shp.pdf

[4] For in-network. Source: https://shp.nctreasurer.com/Medical%20Benefits/2018%20ActivesNM_Comparison_ChartFINAL.pdf

[5] http://www.ncpublicschools.org/docs/fbs/conferences/presentations/summer15/shp.pdf

[6]https://shp.nctreasurer.com/Medical%20Benefits/2018%20ActivesNM_Comparison_ChartFINAL.pdf

[7] Source: http://www.ncpublicschools.org/docs/fbs/conferences/presentations/summer15/shp.pdf

[8] https://shp.nctreasurer.com/Rate%20Sheets/OE_18_RateSheet_Active.pdf

[9] In 2016, SHRA employees received a 1.5% across-the-board increase to base salary, plus an across-the board 0.5% one-time bonus, plus a one-time bonus based on performance rating. In 2017, SHRA employees received a $1000 across-the-board increase to base salary, plus 24 hours of bonus leave, which does not expire, but does not pay out on termination.

[10] In 2016, .5% across-the-board bonus + 1% discretionary bonus (average) + 1.5% across-the-board raise; and in 2017, discretionary up to 4.99%.

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