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University senate approves increased health care premiums

Stephen Bell

University senate met Monday with rising health care costs taking the forefront as the Benefits Committee announced changes in health coverage for Miami University faculty and students alike.

In an effort to cut approximately $200,000 to $300,000 from the university's annual health care budget, premiums for those earning more than $130,000 will rise, according to Ted Pickerill, chair of the Benefits Committee.

"Overall health care costs are around $30 million," Pickerill said. "That is approximately $14,000 per family."

According to Carol Hauser, senior director of human resources, such steps are necessary given the rise in national health care costs.

Hauser said co-pays will be raised as well.

"The goal is to slow down the increase in the cost of health care," Hauser said. "By raising co-pays, we are able to keep overall costs down. While the co-pay to see your regular doctor will remain $25, it will now cost $35 to see a specialist."

Provost Jeffery Herbst said Miami's health care plan is generous compared to others.

"The premium structure is sensitive to peoples' income," Herbst said. "The more you make, the more you pay."

Hauser said those paying a high deductible on health care will not see the same increases as those who do not, a benefit that University Registrar Dave Sauter acknowledged.

"I was one of the 500 who opted for the high deductible," Sauter said. "We looked at our health situation, and what we were paying and what we thought we would be paying, combined with the university's portion."

Not all were relieved by the announced changes. While part-time employees will continue to pay full-price for health coverage, graduate students will no longer be offered insurance through Miami, Pickerill said.

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"We will offer graduate students some sort of alternative option," Pickerill said. "We are even working to reduce the amount paid by part-time employees."

Hauser said these changes are simply measures to combat soaring health care costs.

Hauser said any changes should be viewed as an attempt to stabilize employee costs in a volatile environment.

"Health care costs for (Miami) employees are expected to increase about 14 percent," Hauser said. "We are trying to reduce that number to 8 percent, which is important to keep in mind seeing as how the average national rise is well into the double digits."