As national health care costs continue to rise, the George Washington University is taking steps to maintain access to quality health care and to manage costs.
Following a recent Faculty Senate discussion centered on the value of the university’s health care benefits, Vice President for Human Resources Sabrina Ellis spoke with George Washington Today to explain how GW’s plans compare with plans in the higher education marketplace. She also shared information on how University Human Resources engages in the consultative process with faculty and staff throughout the year through advisory committees.
Q: What are the ultimate goals GW hopes to achieve with its benefits program?
A: The ultimate goal of our benefits programs is to attract and retain world-class faculty and staff. Overall, when you compare all of our benefits, including medical, prescription drug, tuition, disability and retirement, GW remains highly competitive in the higher education marketplace and that helps us to accomplish our institutional goals.
Q: What are some of the challenges the university is facing regarding health benefits?
A: GW, like all employers, has the challenge of maintaining competitive benefits plans while balancing increases in the cost of medical care. GW has offered plans that provide great flexibility in addition to a high level of coverage. Over the years, peer institutions have taken aggressive steps to control rising health care costs by limiting flexibility through methods like eliminating or reducing out-of-network coverage for non-emergency care, requiring primary care physician referrals for specialist visits, and requiring preauthorization for services or authorization from the insurance carrier for certain prescription drugs.
The decision by peer institutions to reduce out-of-pocket costs by restricting options is perfectly reasonable, but our approach has been different—we strive to remain flexible, and we continue to offer an extended network.
Q: How much does the university contribute to health benefits, and how does this affect employee premiums?
A: In 2013, the university paid $27.6 million for medical and prescription drug coverage. This represents a $3.3 million increase from the prior year. To the extent that medical claims exceeded this amount, employee premiums were increased.
Q: Why are health care costs increasing?
A: Over the last two years, the university has experienced a rapid increase in the cost of medical claims. This increase can be attributed, in part, to higher fees required by medical providers, an increase in the number of services being obtained, the type and complexity of services, higher utilization of brand name and specialty drugs, and new and emerging technologies. There is more that we, as a community, can do to manage these costs, and our goal in consulting with our advisory committees is to achieve the best overall outcome for everyone.
Q: How does the value of GW’s health care benefits compare with other private universities?
A: When comparing with market-basket schools, it’s important to consider what type of health care plan each school offers. Some universities only offer an HMO (health maintenance organization) with a closed network that does not allow for out-of-network coverage in non-emergencies and a POS (point-of-service plan), which offers lower out-of-pocket costs if care is coordinated through an in-network primary care physician. HMO and POS plans cannot be directly compared to GW’s PPO (preferred provider organization) plans. When you compare the level of flexibility and the ability to use a wide range of providers, our plans are very reasonable.
Q: What’s the best way for faculty and staff to provide input?
A: Every summer, we develop our recommendations in consultation with our Benefits Advisory Committee and other stakeholders for the next plan year. We will evaluate how we can continue to incorporate best practices into our plan design process.
Faculty and staff should provide feedback through the Benefits Advisory Committee or the Appointments, Salary, Promotion Policy (ASPP) committee. This consultative process enables those committees to fully consider recommendations from the faculty and staff throughout the year. Employees can also email or call Benefits Administration at [email protected] or 703-726-8382.