Tuesday, November 20, 2001

Rising insurance costs may force staff cancellations
By Jaime Walker
Skiff Staff

Just after she finished emptying the trash cans on “her floor,” a residential services employee with more than 20 years of experience at TCU fought the urge to pitch the white, 8-by-11 envelope marked “confidential” right into the garbage.

Across campus, Physical Plant and Facility Services employees were expressing similar concern.

Simon Lopez/SKIFF STAFF Ray Brown, a 5-year employee of facility services, takes out the trash in Sadler Hall Monday night. The university’s health care provider, UnitedHealthcare, will increase insurance cost nearly 30 percent in 2002 for all full-time employees.

Last week Human Resources disseminated the same insurance materials to every full-time employee at the university. Each was individually addressed, but the message was not unique. Like it or not, insurance costs will be going up approximately 30 percent in 2002.

Prescription drug costs and the increased number of prescription drug claims by faculty and staff are predominately to blame for the significant rise in premiums, said John Weis, assistant vice chancellor for human resources. He said UnitedHealthcare, the university’s health care provider, has increased costs for the Exclusive Provider Organization, which requires prior referral for specialized physicians, by 32.5 percent. Costs for the Preferred Provider Organization, which allows patients any physicians without prior referral, will go up 30.1 percent, he said.

All full-time faculty and staff who participate in TCU’s insurance plan will be digging deeper into their pockets. For single, employee-only coverage under the EPO plan, the new premium is about $25 higher than employees paid last year, according to records.

But the lowest-paid members of TCU’s staff will be hardest hit.

“I understand TCU is not to blame for the increase,” the residential services employee said. “They are not the bad guys or the enemy, but the fact remains they have to understand this jump hits everyone, yes, but it hits those of us with lower wages much harder than the rest of the campus.”

TCU is not the only institution dealing with increased insurance costs. According to a recent article published in the Fort Worth Star -Telegram, insurance premiums are increasing throughout Tarrant County between 20 and 70 percent.

The increase at TCU is based on the number of claims generated at the university, said Carol Campbell, vice chancellor for business and finance.

“There’s not much the university can do about premium costs beyond what is already being done,” she said. “Our best opportunity to decrease costs in the future is to promote wellness programs like the initiative currently at the recreation center. Such programs include blood pressure monitoring, diet programs and fitness plans. Taking these preventative steps can save the university $4 in claims for each dollar we spend on a wellness program.”

Marsha Ramsey, academic adviser for the Center of Academic Services, said she is not happy about the additional costs, and the benefits of having coverage outweigh the downside of the increase.

“I understand the increase has the greatest impact on other employees, but it’s still significant.”

Physical Plant employee Tara Pope told the Staff Assembly Nov. 7 that TCU’s starting hourly wage of $7.25, or $15,080 a year, puts employees below the poverty line of $15,096 for a family of two. Pope said she and several other employees conducted an informal survey regarding insurance coverage for Physical Plant, Residential Services and Facility Services employees.

“The majority of employees surveyed indicated they are considering dropping their TCU insurance because of the increase,” Pope said.

Staff Assembly Chairman Bob Seal said the Staff Assembly is concerned about the increase because of the number of employees who are currently uninsured.

“We need to encourage the administration to do as much as they can to decrease our costs,” he said. “TCU has already done a good job of keeping costs down but this time the economy has made lower increases almost impossible.”

Claudia Camp, a professor of religion, said the issues related to insurance increases need to be put in context of other over-arching concerns. Camp said she and other faculty members have been concerned about insurance issues for awhile.

“This is an issue of living wages for those on the lowest end of the pay scale,” Camp said. “Because that is the case, it is also an issue of tuition costs for students and faculty salaries and the general trends in the state of Texas, which indicate we have a huge number of our population who are employed but uninsured.”

Camp said it is important to stress the fact that the university is not to blame for the increase, but that does not relinquish the responsibility of all members of the TCU community — students, faculty, staff and administration.

Seal said when the Human Resources department recently presented the new insurance rates to the Staff Assembly, the group was silent.

“This issue is two-fold,” he said. “We are resigned to the fact the increase is going to happen, but we are also concerned that without a living wage, lower-paid staff can’t afford any insurance regardless. If the Staff Assembly delegates consider this a major concern, we’ll fight for it.”

Pope said the increases would hurt low-paid employees.

“If a groundskeeper or housekeeper purchases insurance for himself and his family, it would represent 22 percent of his income,” Pope said.

“While these insurance increases affect all employees and for that matter all Americans, those at the bottom of the salary scale suffer the most. At the current rate, employee and family coverage will cost $128.06 every two weeks, which calculates to $1.60 per hour.”

The residential services employee, who spoke only on the condition of anonymity because she did not want to be seen as a “troublemaker,” said she and some of her colleagues are exploring the possibility of canceling their benefits, at least temporarily, until they can come up with the money. Others are looking into several government-funded programs.

“I am here because I have friends here and because I like what I do,” she said. “I don’t want to leave TCU. I never have. What I do want is to not have to work so hard to make ends meet.

“I work two jobs and still barely make rent or buy groceries or give my kids what they need. Now it scares me I might not be able to protect them if they get sick.”

According to Human Resources records, no official insurance coverage cancellations have been filed since the packets were distributed.

Six Physical Plant employees, who were afraid to discuss the issue publicly, said they are seriously considering cancellation.

One man said the nearly $128 every two weeks he will have to pay to protect his family on the new plan is “more than we can bear.”

“Over the years that I have worked at TCU I have seen many of my friends crying and frustrated when their children get sick and they have no insurance,” he said. “I have no doubt that without my job at TCU I would be living on the streets. I am thankful.

“What I want the administration to understand though is that costs like this have a great impact. Some people’s salaries are being forgotten.”

Staff Reporter Piper Huddleston contributed to this report
Jaime Walker
j.l.walker@student.tcu.edu