Health insurance rates to rise for Washburn employees

Employees at Washburn University will be paying an average of 4 percent more for health insurance base plan premiums after action taken Thursday by the school's board of regents.

Jim Martin, Washburn's interim vice president of administration and treasurer, told board members "extensive meetings" he's had with representatives of Blue Cross and Blue Shield of Kansas in the past month revealed Washburn's insurance utilization rates are expected to increase by 10 percent in the next year.

"We're faced with making significant plan adjustments," he told the regents, adding that the dramatic rise in drug costs is a driving factor for the increases.

While the premiums for a base plan, used by about 80 percent of the university's staff, will increase by 4 percent, premiums for Washburn's "buy-up" plan are expected to increase by 10 percent, Martin said. He said about 100 employees take advantage of the buy-up plan that offers lower deductibles and lower co-pays but higher premiums.

Martin said staff members in the lower pay categories will pay less for their health insurance under this year's rates.

"You're protecting the people who can least afford it," regent Paul Hoferer told Martin. "I appreciate that."

Martin said Washburn will continue to pay for the entire premium of the single-payer base plan, regardless of salary. He said changes to the health insurance coverage include increasing the co-pay for the specialty office visits from $30 to $40, increasing the prescription co-pay for generic drugs by $10 to $15 and reducing the lab and x-ray rider from $500 to $300. He said there will also be a co-pay for emergency room visits.

"The goal is to keep people from using the emergency room for primary care, but also not to discourage people if they have a true emergency," Martin said.

Washburn's portion of the premiums will be paid for out of the university's fiscal year 2017 fringe benefits budget.

According to board documents, Washburn officials "will continue evaluating our wellness program more closely with our health plan and look at options for future plan design changes."

Martin told the regents that the university's workers compensation costs have decreased by $80,000 over the past year. He said the "experience modification factor of .71" is the lowest that has been in more than 10 years which has caused the premium for that insurance to go down by 25 percent.

Also on Thursday, the regents approved the expansion of Washburn's bachelor's of science in nursing program.

JuliAnn Mazachek, interim vice president for academic affairs, told the regents that a significant portion of $480,000 cost of the online program would go toward marketing efforts.

The Frank Agency, of Overland Park, the firm the university has on contract for marketing services, will target non-traditional, working students who already have their associate's degree in nursing.

"We believe this is going to be an ongoing demand," Mazachek told the regents, adding that Washburn is authorized to offer the 18-month, online course in 37 states.

"We want opportunities to grow revenue for the university," Monica Scheibmeir, dean of the college of nursing, told the regents. "It also helps the nursing profession."

Credit: Angela Deines angela.deines@cjonline.com