FORT WAYNE, Ind. — The Purdue University Board of Trustees on Friday (Aug. 5) approved health plans for 2023 that will not include an employee premium increase for the fourth year in a row. The 2023 plans align with the university’s strategic approach to health and the Healthy Boiler Program initiative, and were developed as part of an ongoing effort to improve population health and control overall costs for employees and the university.
Additionally, in recognition of their actions 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 the Purdue Medical Plan will receive a cash payment more late this year, equal to two months of the average employee premium—an estimated cost of $2.4 million.
Updates for plan year 2023 will be:
- Launching national centers of excellence with Carrum Health for specific packages of care such as bariatric, musculoskeletal, cardiac care and sports medicine. By connecting members with the top 10% of providers nationwide, Carrum can provide the right care from the best providers, predictable and immediate savings for members and the University, and greater member satisfaction.
- Expanding the activities of the Center for Healthy Living on the Purdue Northwest campus. Although the university will bear implementation and short-term costs, long-term savings are expected for committed members and the university, as well as improved population health.
- Perform colonoscopy direct agreement with a preferred provider.
- Launch of telehealth pilot project through Center for Healthy Living. With the increase in remote and hybrid workers, access to quality emergency care can be critical to reducing unnecessary emergency or emergency visits. Pending a successful pilot – population health, employee savings and positive satisfaction – this program will be expanded to all members.
- Release and implementation of a direct agreement for a Medication Therapy Management (MTM) network in partnership with the College of Pharmacy. The goal of MTM is to optimize outcomes for the individual while preventing drug-related adverse reactions.
- Increase in single coverage ($50) and family coverage ($100) deductible based on IRS requirements.
- Renew a four-year contract with CVS Caremark, a prescription benefits manager, based on the Indiana Prescription Aggregate Plan Program RFP. Estimated savings to be determined.
- Premium rates for early retirees will increase by 5% – affecting approximately 250 early retirees who are on medical plans.
Combined, these recommendations are expected to result in annual savings of $1.7 million when fully implemented.
Overall university spending increases will continue to be significantly lower than the national average. According to PricewaterhouseCoopers, the national average for university health has grown nearly 6 percent annually since 2017, while Purdue has seen an average increase of 0.3 percent annually.
About 65% of employees are engaged in HealthSync, an innovative network of high-performing healthcare providers dedicated to personalized, value-based care. The result is a savings of $10.4 million from its 2020 implementation through July 31, 2022. Purdue will continue to evaluate options to further expand this network and drive the use of HealthSync network providers.
Purdue’s focus on population health led to the following increases in employee screenings: physicals (57% in 2021 vs. 39% in 2017), mammograms (68% in 2021 vs. 52% in 2017), and colonoscopy (53% in 2021 compared to 2017, 28% in 2018).
In May, Purdue announced a partnership with Ascension St. Vincent to build a community hospital in Purdue’s Discovery Park area—the first development of what will become a larger campus medical complex that will focus primarily on outpatient care.
Employees will begin receiving 2023 open enrollment information via email the week of August 9 and will continue to receive enrollment information, benefit changes and more over the next few months via home emails, email and virtual newsletters from Purdue Benefits and Purdue Today.
Open Enrollment for 2023 will begin on October 25th and continue until 6:00 PM ET on November 8th. Employees are encouraged to evaluate all medical plan options and other benefits to ensure they are choosing the best option for themselves and their families.
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 delivers world-changing research and out-of-this-world discoveries. Committed to real-world, hands-on and online learning, Purdue offers a transformative education for all. Committed to affordability and affordability, Purdue has frozen tuition and most fees at 2012-13 levels, allowing more students than ever to graduate debt-free. See how Purdue never stops chasing the next giant leap at https://stories.purdue.edu.
source: Candice Shaffe, [email protected]