At Tuesday afternoon’s Faculty Senate meeting, members discussed ways to reform MSU’s health care plan to comply with the Affordable Care Act and recent dependent audits.
At the meeting, officials from MSU Human Resources, or HR, addressed members about the recent dependent audit — the announced continuing to use Blue Cross Blue Shield as a third party administrator of university health care and the change in plans that will go into effect January 2014 as part of the Affordable Care Act, or ACA.
Renee Rivard, MSU’s department of human resources director of benefits, said the dependent audit, which previously concerned some employees who were worried their dependents wouldn’t qualify, is a standard protocol at MSU. The audit ensures the employee dependents remain eligible. MSU’s last dependent audit was in 1989.
Of the 6,600 employees, 217 dependents were voluntarily removed from the health plans while about 300 employees didn’t respond, Rivard said. If the rest of the employees do not respond to the audit by March 1, their dependents will be dropped from their plans. Rivard said HR is doing everything possible to reach these employees.
“There are a lot of fees and penalties that are associated with health care reform that are based on the number of people that are on your plan,” she said. “If we have people on our plan who are no longer eligible, we would end up paying a fee for that person.”
Rivard said this audit is saving more than $600,000 in net savings — a number she believes will increase after the March 1 deadline.
Once the ACA is in effect, there will be a new consumer-driven plan available to employees to expand their benefits, she said.
During the meeting, MSU President Lou Anna K. Simon said the ACA helps fund insurance to the previously uninsured, but the changes might not benefit MSU.
“(The ACA) could generate some revenues along the way that made it better for a whole set of people — probably not us,” Simon said at the meeting. “This is potentially a disadvantage for large employers like us who have been relatively rich in health care and not necessarily strong on salary.”
Simon said some of the new rules and regulations could lead to a some “rocky” moments in transition, and employees need to stay informed of the changes in their health care parameters.
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