Answer: There are a couple of important factors in setting the rates that you’re viewing for 2010. First, the total combined University Contribution and Employee Contribution has increased for 2010 when you aggregate the premiums for all rate tiers rather than compare a single category. For example, the “employee only” rate went from 426.66 to 435, and the “employee plus children” rate changed from 657.06 to 765. Secondly, a factor in 2010 rates is the adjustment to the rate ratio for premium setting, which places more cost on the adult dependent cost, and less on the children.
Additionally, 2010 marks the first year of our two-year transition in overall cost sharing, whereby we will move from an aggregate of 80% of costs being paid by the University and 20% paid by employees and retirees to an aggregate of 70% paid by the University and 30% paid by employees and retirees. The University’s overall health costs continue to increase, and the premium dollars contributed by employees and University are being fully utilized toward those costs.
