The UNM Board of Regents (BOR) will consider a budget package that includes changes in the health care plan when it meets on Tuesday, April 8 in UNM SUB Ballroom C at 9 a.m. The BOR Finance and Facilities subcommittee voted Friday to send the funding proposal on to the full board without recommendations.
The move comes after the BOR approved compensation increases of 2 percent for staff and 3 percent for faculty and no tuition increase at its March budget summit. Regents then tasked the Administration with identifying how to fund the pay raises, while retaining the critical elements of the Provost’s Academic Strategic Plan.
In addition to the funding for compensation received from the State Legislature and contributions made by all units on campus through Results Oriented Management (ROM), the funding proposal includes a plan design change for UNM health benefits. While additional compensation will result in more money going into employees’ base pay, other contributions may offset the amount of take-home pay, including the second of a two-year Educational Retirement Board increase and an increase in the Voluntary Employees’ Beneficiary Association plan contribution. Health Plan premiums will also rise.
Under the proposed change, the health benefits plan will now offer three options to employees. The attempt is to maximize the benefit to the employee, while keeping premium increases as low as possible. Under the proposal, health care premiums will rise much less than previously anticipated, but co-pays, co-insurance, deductibles and the out-of-pocket maximum will go up, impacting employees differently depending on their usage.
Specifics of the plan will be presented in more detail at Tuesday’s BOR meeting. Pending a decision, UNM is planning to hold extensive briefings with the faculty and staff later next week to explain the changes to the group benefit plan. Human Resources will be conducting a number of informational and instructional sessions, as well as offering an online module to assist employees throughout the process.
Each employee who uses the UNM medical plans will be required re-enroll. Open Enrollment is set to run from Wednesday, April 23 through Wednesday, May 14.