May 21, 2013
Employees’ Monthly Insurance Payments to Rise
DRAMATICALLY INCREASED monthly insurance payments may be a dose of bitter
medicine for University of Illinois employees trying to watch both their budget
and their health.
STILL, STATE of Illinois health plan costs for employees remain below the national
average.
ACCORDING TO an Aon Hewitt report, the 2012 national employee-only monthly premium
was $183 and is expected to rise to $198 in 2013. Monthly healthcare premiums
for all State employees will remain well below that mark, except for employees
earning over $100,000 annually; these highest earners will pay premiums in line
with the national average. (See the NESSIE website http://illinois.edu/blog/view/1418/92394?count=1&ACTION=DIALOG&sort=asc
for charts showing FY2014 employee and dependent monthly premiums for both
managed care and quality care programs.)
A SERIES of unique issues
over the last several years have insulated State employees in Illinois
employees from the rising costs of healthcare.
“THE LAST two years, due to
contracting issues the State had in procurement of managed care plans,
emergency contracts were in place and rates essentially held flat,” said Human
Resources Administration Director Katie
Ross, University Human Resources. “Now we see the aggregated impact: The
new rates reflect what we would have seen incrementally. All at once, it’s hard
to swallow.”
THE TOTAL monthly premium
increase from July 2007 to July 2012 was only $12 for both plans; they
increased $6 per month in Fiscal Year 2009 and again in Fiscal Year 2010, but
remained the same in 2011, 2012, and 2013.
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| Click image for larger picture. |
EMPLOYEE MONTHLY premium rates are determined through State-wide bargaining by the
Illinois AFSCME (American Federation of State, County, and Municipal Employees)
and extend to all State employees on the State Employee Group Insurance Plan.
Monthly premium rates, published May 1, are priced by a series of six salary
bands, with employee premiums increasing with salary income. For example, an
employee earning up to $30,200 will pay $68 for managed care or $93 for quality
care each month; an employee earning between $75,901 and $100,000 will pay $137
for managed care or $162 for quality care each month.
EMPLOYEES CAN also choose to provide health insurance for dependents. Choices again include managed or quality
care, and monthly costs depend on the number of dependents being insured.
Employees insuring dependents pay both the employee premium and the dependent
premium each month.
THE STATE also pays a
portion of health care costs for each employee; generally the amount is
considerably larger than the monthly premium paid by employees. The State has
not yet published these amounts for the upcoming fiscal year, but Ross expects
to receive this information soon.
THE BENEFITS choice period concludes May 31; plan and fee changes are effective July
1.
DEDUCTIBLES, CO-PAYMENTS and out-of-pocket maximums for all healthcare
plans also will increase July 1.
“THIS YEAR, more than ever, employees need to read the material from CMS and the Benefit Choice Options booklet,” said
Ross. “Especially if they traditionally don’t make a change. They need to look
at premium rates, the plan changes, and the “What You Should Know” notes in the
Benefits Choice Options booklet. I
encourage everyone to look at this information, even if they haven’t in the
past.
“SELECTION OF health insurance is a very personal issue,” Ross continued. “CMS has
benefit fairs around the city and in the suburbs. The University is putting on
employee information sessions on each campus. I encourage employees to attend
and make the best decision for themselves and their families.”
FOR DETAILS about employee benefits information sessions see NESSIE: http://illinois.edu/blog/view/1418/92277?count=1&ACTION=DIALOG&sort=asc.
SEND AN email to benefits@uillinois.edu
or contact UPB Benefits Services at Chicago (312) 996-6471 with additional
benefits questions.
UNIVERSITY RETIREES also are experiencing a health-care cost increase.
Retirees, or those planning to retire this year, should contact SURS directly.
Dental, Vision Plans Also Affected
STATE DENTAL and vision plans, like medical plans (see article above), also will
have associated cost changes.
MONTHLY DENTAL premiums (not changing this year) for employees are $11; the addition
of one dependent increases the monthly premium to $17, while an employee with
two or more dependents pays $19.50.
THE ANNUAL dental deductible
increases from $125 to $150. The maximum annual in-network benefit remains at
$2,500 and the annual maximum for in-network orthodontia remains $2,000.
Benefits for out-of-network services have decreased by $500.
EMPLOYEE COSTS for vision eye exams, lenses, and standard frames have doubled from $10
to $20.
University Finalizes Human Capital Strategy
THE UNIVERSITY of Illinois recently finalized a
Human Capital Strategy (HCS) document, which is designed to address some of the
issues impacting University employees. Wayne
Stahl, Director of Organizational Effectiveness, University of Illinois,
facilitated a cross-campus team to create the document.
THE HCS team defines a Human Capital Strategy
as: the determination of the right mix of human capital for the short-term and
projected needs of the organization based on workforce planning data and talent
management systems and programs. “In our strategy, we defined human capital as what
people know, how people interact, how committed people are to the organization,
and the work people do that drives an organization toward achieving its
strategic objectives,” Stahl said.
In the
Beginning
ON JUNE 8,
2010, the University’s Administrative
Review and Restructuring Human Resources Management (ARR-HR) Subcommittee
issued a Final Report, which recommended that a supportive human capital
strategy be developed. Such a strategy should be grounded in job analysis so
that the content of the position, the title of the position, and the required
qualifications and competencies are well understood.
A SECOND recommendation called for a Human Capital Strategy for Academic Professionals (APs). Areas that need to be
reviewed include the total compensation for Academic Professionals,
professional development, and career advancement.
WITH RESPECT to Academic Professionals, the report
stated: “APs are critical to the everyday functions performed at the University
and to the future success of a transformed University. They are described as ‘a
workforce that breaks through traditional barriers that is flexible,
self-directed, multidisciplinary, and able to adapt to the changing needs of
the University.’”
Details
of the Strategy
THE HCS
team followed those recommendations to create the recently released Human Capital Strategy document.
According to Stahl:
FOR THE purposes of our report, human capital
is: what people know, how people interact, how committed people are to the
organization, and the work people do that drives an organization toward
achieving its strategic objectives. The guiding principles for the creation of
our human capital model are:
- Human Capital Management is a
fundamental component of strategic business management. It is guided by
and directed toward fulfillment of the university’s and each campus’s
strategic mission, vision and values. Human capital considerations are
reflected when designing and implementing operational policies and
practices.
- People are viewed at the
University of Illinois as assets whose value to the university can be
enhanced through investment. As with any investment, the University’s goal
is to maximize the value of its people to increase operational effectiveness
and efficiency, and add greater value to students, parents and other
stakeholders.
- A University-wide competency
model provides a common base to implement a human capital strategy.
Competencies are a guide for employees to support the University in
achieving its goals. As an operational tool, the competency model is used
to build and sustain the university’s pool of leaders through recruiting,
hiring, development, retention, and succession policies and practices
targeted for leaders with identified characteristics and work experiences.
- Performance management systems,
including pay and other incentives, link performance to results.
- Individuals interact, support and
learn from each other as a means of contributing to the high performance
of their peers, colleges, units and the University as a whole.
- The organizational structure
should support high performance in the workplace.
- Talent management only “works” if
all leaders, managers and employees are responsible for hiring, engaging,
developing and retaining top talent. HR enables these efforts by
developing and providing tools, templates, processes, systems, analyses
and training to help leaders, managers and employees be more effective in
their talent management responsibilities. However, ownership rests with
line management.
Potential Impact of the Document
THE IMPACT to University employees by campus and
across the three campuses is potentially significant. The size and complexity
of the recommendations range from developing a policy on bullying and
developing processes for more opportunities for internal promotions to the
modernization of the State Universities Civil Service System and changing our
culture to drive continuous improvement in everything we do.
WE NOW have a strategy for human resources
to integrate into the campus strategies, and UIC HR has been a leader in this
area. The Chicago campus HR office has developed a robust strategy that
integrates some of the elements found in the University’s human capital
strategy.
THE OTHER campuses and the hospital are looking
at opportunities where they can make changes and improvements to their
respective organizations and collectively where the University as a whole can
benefit. The challenge is to keep the momentum going while we all face financial
and resource shortfalls.
Status
of the Initiative
THE PROPOSED strategy was presented to the Human
Resource Leadership Team on March 27, 2013, for review and approval. Members of
the team are collecting input from their respective campus and University
administration leadership groups, at which point they will discuss the next
steps for the human capital strategy and make recommendations.
For More Information
The strategy
is posted on the APAC website. “As new teams are formed to carry out these
recommendations, Academic Professionals will be asked to participate directly,”
Stahl concluded. “As a stakeholder group, they will be asked for input through
organizations such as APAC. Our project team has had a great relationship with
APAC during the development of the Human Capital Strategy document. I expect
that relationship to continue to be nurtured and grow.”
IGPA Report Details Retirement Contribution Changes Across US
“ILLINOIS’ STATE pension system has the lowest funding
ratio of any state, with roughly $100 billion in unfunded liabilities,” said James R. Paul, Assistant Director,
IGPA. “That means that the State has promised to make these payments to workers
when they retire, but does not have the resources set aside to do so. IGPA has
conducted many analyses of this situation.” You can read all of IGPA's work on public pensions here.
SINCE 2009, changes have been made to
public employee pension systems in about half of all states, but the details
vary widely. Post-retirement COLAs have been reduced, adjusted, and tied to
inflation and pension funding ratios. Employee contribution rates have been
increased in numerous states, but these increases are not always permanent and
some states have also mandated larger employer contributions.
Chancellor’s Academic Professional Excellence Award Nominations Due in June
 |
| Chancellor Paula Allen-Meares. |
APAC Meetings Scheduled
ALL
APs are invited to
the monthly APAC meeting at 12:30 p.m. on the second Wednesday of the month..
Next meeting is June 12 in a special location: College of Medicine West, 1853
W. Polk St., Room 119A. For information, call (312) 996-0306.
BENEFIT BEAT
EMPLOYEES
ARE eligible for a
number of discounts via online shopping.
SOME
BUSINESSES provide a
discount code that you can use on their website, or provide over the
phone. Other businesses require you to contact them directly for the
discount. In order for them to identify the discount you qualify for, you may
need to let them know:
- You are a University of Illinois
at Chicago employee
- You are a State of Illinois
employee
- You are a government employee
- You are employed at "Big
Ten" University
- You are staff/student/faculty at
the University
HOTEL AND MOTEL deals are available from Best Western,
www.bestwestern.com, discount code
01026040, Big Ten rate; Club Quarters, www.clubquarters.com,
call for discount; Hilton Hotels, www.hilton.com,
call for discount; Howard Johnson’s, www.hojo.com,
discount code 160617; Holiday Inn, www.holidyinn.com,
discount code 176095; Quality Inn, www.qualityinn.com,
discount code 026678; Radisson Hotels, www.radisson.com,
discount code WP1602, Big Ten rate; Ramada Inn, www.ramada.com,
discount code 901597, government employee rate; Red Roof Inn, www.redroof.com, discount code CP514137; and
Starwood Hotels, www.starwoodhotels.com,
discount code 6674-CO.
FOR MORE information, see https://sites.google.com/site/uicapac/resources/employee-discounts.
THE CONTINUING CRISIS
 |
| Rep. Lou Lang. |
UIC UNITED, the UIC chapter of the State Universities
Annuitants Association, held its Spring membership meeting on April 25 at the
UIC Student Center West. Dr.
Nicole Kazee, Director of Health Policy and Programs at the
University of Illinois Hospital & Health Sciences System, spoke on “The Affordable Care Act: What
Does Health Reform Mean for You and Your Families?” Her presentation may be viewed here.
IT’S
TIME the Chicago
Tribune stops treating the Illinois Constitution like yesterday’s newspaper
when it comes to State pensions, says Rep.
Lou Lang. See Chicago Tribune, May
12, 2013: http://www.chicagotribune.com/news/opinion/ct-oped-0512-lang-20130512,0,544832.story
Vol. 6, No. 5 May 2013
ISSN 1946-1860
Editor: William S. Bike
Staff: Lucia Gonzalez, Gail Mansfield, Monica M. Walk
Vice Chair: Ahlam Al-Kodmany
Chair: Michael Moss
Secretary: Mary Berta
Treasurer: Virginia Buglio
Web Chair: Jeff Alcantar
Web Chair: Jeff Alcantar
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