Senate Report 21-02

Questions

1. What are the employee-friendly metrics used to determine our healthcare benefits?

HEALTHY

BOILER

2. How do the medical benefits provided by Purdue compare to those of other large local employers? It is

clear that healthcare spending is on the rise; however, many Purdue employees do not consider the

medical benefits here to be competitive.

3. How is HR helping to streamline and facilitate the process of understanding what we pay for and whatwe get for it? How can we help employees to make good healthcare choices? For example, anecdotal

reports suggest that the Healthcare Concierge may not be functioning well or consistently. This person

does not appear to be informed of tier 1 and tier 2 locations. Further, Castlight / Anthem Care&Cost is

not always up-to-date.

HEALTHY BOILER- Part of Total Rewards

Behavioral Health

Employee Assistance Program

Live Health Online

My Strength

Behavioral Health Counseling Financial Wellness

Retirement

Life Insurance

Health Savings Account

Voluntary Benefits

Physical Health

Medical, Rx, Dental and Vision

Health Clinics (PWL, PFW)

Rx Savings Solutions

ATI Onsite Program

Shoes for Crews Social

Wellr,ess

HB Challenges

Winter Recess

Cultural Centers

Work-L'fe I r,tegration

Leaves - Personal and Business

Care.com

Family Friendly Policies

Onsite Child Care

Professional Committees and Groups

11I1sI2021 I 3

Question 1

What are the employee-friendly metrics used to

determine our healthcare benefits?

Question 2

How do the medical benefits provided by Purdue

compare to those of other large local employers?

It is clear that healthcare spending is on the rise;

however, many Purdue employees do not

consider the medical benefits here to be

competitive.

2019 Higher Education Benchmark-Annual Premium

Al I Plans - I[) P

■!Em

• Em� An - O:m "l:!.rtic;

Source: 2019 Higher Education Benchmark, LHD Benefit Advisors

Purdue HD P

• Em A ual Contriburtion

• Emp� An - Con icm

36 institutions invited to participate

14 submitted validated information

13 additional public institutions

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2019 Higher Education Benchmark- Annual Premium

Cost Information

Ave Mon11Jhlv E;mployee Co:ntri'ooSin,gle EE+Spoose

EE+ Clhiildjn!fllj

Family·

Ave 1Mon11Jhlv Employee Co:ntri'ooSin,gle EE+Spoose

EE+ Childjr-enl

Family·

Average !Monthly Prcemiu m l[Eqllli Sin,gle EE+Spouse

EE+ Childjn!f'IJ

Family·

l!�-

25,10001

,emplo-r,ees

n=5

$36,

$9.i.5 $&'9 $143

7_, .. 9.8%; 9.3%

10.2.%

$464 $969 $957

$1,400.

Source: 2019 Higher Education Benchmark, LHD Benefit Advisors

CDHP Plans

All U11ive1rS1ities

n = l.lJ

$63

$136 $112. $206

111.0%

$570

$�015, $906

Sl,5•68

IMidllleSt

n=8

$63,

SB6, SU'2 $206

U!i.3 12.4 ll.312.2

�6,:13 $1,096, $'991

$1,61B

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2.'111

� Ptudue How Purdue Compares to

Benchmarks

HDHP:L HDHP2

:$17 $49 $5 s 0 f I rd. pr,emi

:Sas, Sm $82 mcost:sto

:$3:2 $;8, $27 �Sail1E!�

oompe iti

ve for-all ns $119 $2.4 $111

2...6% 0.8% 5,_9;6 1.3,96 2...6% 0.7% 2.3 S,_9;6 1.2%

$63® �68 Purdue average mta I premi. m

$.1., 19 $1.,281 msts.ar,e es:sfav:o:ra e

$l!.,B5 $1.,®2.l mimpa,-ed to benchmaTl

$1.,;923 $1.,733 average

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2019 Higher Education Benchmark- Deductible

CDHP Plans

10,000-201'9 J>mrd u:e

How Purdue Compares to

25,000 .i'III Univermies !Midwest Benchmarks

e°'?lo'(ees

Plan Design lnform.atiion 111 =5 n = 10 n=S HDHPl HDHJ>l HDHPPlans

Deductible

In- 'enwork HDHP 1 is Consistent; HIDHP 2 is

Singte $2,050 $1,950 Sl,844 $2,000 $2,750 Less, Favorable

Family $4,100 $3,667 $3,688 $4,000 SS,'500

Out-of-Network H DHP 1 is Consistent; DHP2is

Singl.e $3;625 $3,000 $3,000 $3,500 S'S,000 Less, Favora•ble Family $7,2.50 $16,000 $6,000 $7,000 $10,000

Coi11surance·

In- enwork 80%/2.0'Yo 80%/20% 80'l(o/20%, 80%/.20% 75%/2'3% iCoruiS'lient

Out-of ,etwmk 60o/,/40% 60%/40% 60%/40% 60%/40% 55%/45'% icon.siSleint

Out-of..P,ock!et Maximum (inc

In- 'enwork H DHP 1 is Consistent; DHP2is

Singte $3)6()() $3,735 $3,250 $3,570 $5,250 Less. Favo@.ble

Familv $7.200 $7470 $6.500 $7,500 $10,500

Out-of-N!etwork

Singte $7,2.50 $6,02.1 $5,967 $8,000 s.10,000Less Favorable

Family $14,500 $12,043 Sll,9'33 $16,000 $20,000

Source: 2019 Higher Education Benchmark, LHD Benefit Advisors

Deductible

(single/family)

OOP (single/family)

EE Monthly

EE+SP Monthly

EE+CH Monthly

EF Monthly

EE Count

EE+SP Count

EE+CH Count

EF Count

EE Average

National Benchmark Regional Benchmark Indiana Benchmark

Plan 1 - HSA Plan 2 - PPO

$3,000/$6,000 $2,000/$4,500

$5,000/$10,000 $6,000/$12,000

$158.00 $210.00

$494.00 $651.00

$417.00 $547.00

$718.00 $926.00

3,739 employers 8,145 Employers

Plan 1 - HSA Plan 2 - PPO

$3,000/$6,000 $2,000/$4,000

$5,000/$10,000 $5,500/$11,850

$147.00 $199.00

$469.00 $617.00

$394.00 $514.00

$665.00 $847.00

1,320 Employers 2,105 Employers

Plan 1 - HSA Plan 2 - PPO

$3,000/$6,000 $2,500/$5,000

$5,000/$10,000 $5,500/$11,000

$161.00 $197.00

$492.00 $608.00

$417.00 $518.00

$721.00 $881.00

339 Employers 282 Employers

Tier 1 Tier 2

$1,450/$2,900 $2,000/$4,000

$2,250/$4,500 $3,250/$6,500

$22.63 $76.94

$118.24 $199.10

$41.41 $129.49

$163.52 $270.18

$55.94 $159.60

Purdue

Plan 1 - HSA

$121.15

Local Employer 1 Local Employer 2

Deductible (single/family)

OOP (single/family)

EE Monthly

EE+SP Monthly

EE+CH Monthly

EF Monthly

EE Count

EE+SP Count

EE+CH Count

EF Count

EE Average

Plan 1 - HSA Plan 2 - PPO

$3,000/$6,000 $750/$2,250

$3,000/$6,000 $3,000/$6,000

$69.33 $114.83

$186.33 $292.50

$134.33 $221.00

$277.33 $403.00

12 19

1 1

2 5

4 3

$126.12 $171.01

Plan 1 - PPO Plan 2 - HSA Plan 3 - HSA

$1,500/$3,000 $3,000/$9,000 $4,000/$8,000

$3,500/$7,500 $6,500/$13,000 $5,000/$10,000

$140.00 $100.00 $45.00

$431.00 $330.00 $175.00

$353.00 $270.00 $130.00

$560.00 $430.00 $220.00

296 127 85

76 13 9

74 48 15

66 22 25

$268.12 $187.67 $95.90

Tier 1 Tier 2

$1,450/$2,900 $2,000/$4,000

$2,250/$4,500 $3,250/$6,500

$22.63 $76.94

$118.24 $199.10

$41.41 $129.49

$163.52 $270.18

1209 1354

268 662

340 581

265 934

$55.94 $159.60

$121.15

Plan 1 - HSA

Purdue

Tier 1 Tier 2

$1,450/$2,900 $2,000/$4,000

$2,250/$4,500 $3,250/$6,500

$22.63 $76.94

$118.24 $199.10

$41.41 $129.49

$163.52 $270.18

1209 1354

268 662

340 581

265 934

$55.94 $159.60

$121.15

Plan 1 - HSA

PurdueLocal Employer 3 Local Employer 4

Plan 1 - PPO Plan 2 - PPO Plan 3 - PPO Plan 3 - HSA Plan 1 - PPO Plan 2 - HSA

Deductible (single/family) $500/$1,000 $1,000/$3,000 $4,500/$9,000 $6,250/$12,500 $1,200/$2,700 $2,300/$4,700

OOP (single/family) $3,000/$6,000 $4,000/$12,000 $6,550/$13,100 $6,250/$12,500 $4,000/$8,100 $4,600/$9,000

EE Monthly

EE+SP Monthly

EE+CH Monthly Varies

EF Monthly

Non- Non-

Tobacco Tobacco Tobacco Tobacco

$160.33 $226.98 $114.83 $181.48

$340.17 $406.81 $225.33 $291.98

$264.33 $330.98 $177.67 $244.31

$411.67 $478.31 $260.00 $326.65

EE Count

EE+SP Count

EE+CH Count 26 23 85 113 Enrollment Not Provided

EF Count

EE Average $223.00 $492.00 $650.00 $246.00

Healthcare Expenditures -Overall 2016-2020

18000

16000

14000

12000

10000

8000

6000

4000

2000

0

Tota ll Actual Combined (ER & EE) Expenses vs Total Actual At PwC Published

Trend (PEPY)

6.2%

6.8% 5.7:%

5.5%

1.0% 1 .0% 1.0%

0.0%

2016 2017 2018 2019 2020 Adj

- Total Healthcare Cost - Totcll Healthcare Cost at PwC Actual Trend - Total Healthcare Cost YOY Trend - PWC YOY Trend

HEALTHY

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0.08

0.07

0.06

0.05

0.04

0.03

0.02

0.01

0

If Purdue followed national trend, employees and the university

would be spending $3k more per employee per year on healthcare.

HEALTHY

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Strategy Plan Cost/ Savings Employee Cost/ Savings

No Premium increase -Moved HSA Purdue contribution to $200/$400 & Expanding current incentive menu of health screenings

Healthy Boiler Portal Upgrade -Increase Retiree premiums {5%) - -Dental Carrier Change & Reduction in premiums - -Reduction in ASO fees - VSP vision carrier -Additional direct agreement - Colonoscopy - -Additional direct agreement - Diabetes Management - -

Not Recommended for 2022. Consider in future years:

• Increase in Working Spouse Premium

• Deductible and Out of Pocket increases

• Cost share on preventive dental

• Cost share on vision

• Premium increase for active employees and long-term disability members

2021 Open Enrollment Survey

Terrible 1 1)

2

3

4

5

6

Excellent fl)

:1]20 Mean:

.J]19 Mean:

6'.1%

7.11%

9.4%

12J]%

_4-%

23 ·� - 0

9.11%1

4.5

4.57

J'ooExpensi e (1) 11-11%1

� 11-5%1

3 13_9%1

4 24_ %

5 17_7%

6 13,_9%1

... ••1Grea Vaine (7) 7_8%

3_99

3_99

3_8 '

�one- ampk t-te · •. frn .. nd thes1e mean \; alue 1nidpomt aitp<_OOl_

Source: 2021 Open Enrollment Benefit Survey

Not Comprehensive ( 1) 7 -3 ° U nfailr ( 1) 7 _ 5%

2. 7-4% 6_5%

3 8,_6% 110J)%

4 21-8% 4 3_9%

S R7% 5 117_4%

6 2 '_9% 6, .0_8%

C.omprehensnre (7) Fain (1) 113 J)%

4-46

4_51

ignificantly ah O\ e or below the ca�e s

4.55*

4.48,*

4.4 .*

HEALTHY

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Question 3

How is HR helping to streamline and facilitate the process of

understanding what we pay for and what we get for it? How can

we help employees to make good healthcare choices? For

example , anecdotal reports suggest that the Healthcare

Concierge may not be functioning well or consistently. This

person does not appear to be informed of tier 1 and tier 2 locations. Further, Castlight / Anthem Care & Cost is not alw ys

up-to-date.

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THANKVOU