Insurance premiums to increase for faculty, staff
Insurance premiums for faculty and staff could rise by 15 percent — just a year after premiums increased by more than 30 percent. The deadline for faculty and staff to submit insurance coverage changes is Friday.
By Amy Johnson
Staff Reporter

Walt Redding, an administration program specialist in the Physical Plant, said he can’t afford to go without health insurance, even if means paying soaring premiums.

“It’s a necessary evil,” said Redding, a father of six. “I hate to see payments increase, but I have to have insurance no matter how much it goes up.”

Redding and his family will see an increase in health care costs of $41.87 a month under the new premium increase.

John Weis, assistant vice chancellor for human resources, said health insurance premiums for faculty and staff will increase up to 15.1 percent depending on the type of coverage beginning next year — just a year after premiums rose by more than 30 percent. Deductibles for emergency room visits, hospital admissions and brand name drugs will also increase.

That premium increase is similar to others projected nationwide in newspaper reports.

Weis said some groups will be affected more than others by the increases.

“It’s always difficult to have costs increase, especially double digit increases,” he said. “It will be especially hard on lower paid workers and those with families.”

The university changed health care providers from PacifiCare to UnitedHealthcare in January 2001 because of the former’s poor service. At that time, premiums increased 14.4 percent, compared to a 17 percent increase that would have occurred had TCU stayed with PacifiCare.

Redding said although he won’t have to make any significant lifestyle changes, he will monitor his spending more.

“I’ll be more conscious of waste,” he said. “I’ll have to shave a few corners here and there.”

Roger Fisher, director of Residential Services, said TCU kept United Healthcare as the sole university provider because its bid was the lowest.

“The good news is we still have an insurance program and were able to negotiate costs down,” he said. “The bad news is costs will still increase.”

Fisher said health insurance costs have increased because health care has become more expensive, pharmaceutical drug costs have increased, people use more prescription drugs and employees utilize their benefits more than ever.

“We always want to blame someone else,” he said. “But, in some ways we’re doing it ourselves because we are using the service.”

Insurance companies look at TCU as low risk but expensive when determining rates, Fisher said. He said university employees typically use more health care than workers in other professions.

“We were under the impression that we were low risk people,” he said. “This is not true because we’re a people intensive group.

“People working at a factory probably go to the doctor only when they are really sick or hurt.”

Weis said TCU has a high claim utilization rate, which in turn drives up premiums.

Fisher said TCU spent $4.9 million on health care this year and is expected to spend $5.6 million next year.

Redding said he trusts his employer and won’t look elsewhere for coverage.

“I’m confident that TCU is looking out for our best interests,” he said. “Our plan is probably as good or better than anywhere else.”

The deadline for staff and faculty to return the enrollment form changes in insurance coverage is Friday.

A.M.Johnson2@tcu.edu