CMU health care costs decline despite rising national averages
Central Michigan University health care expenses continue to decrease, despite the increase of national averages.
The Health Care Committee, in its annual report released last week, outlined these declining costs, which affect more than 4,000 staff and fixed-term faculty, as well as their dependents.
Costs for the two health plans offered through the university, PPO1 and PPO2, declined 8.7 percent and 4.5 percent respectively in the past two years, according to the Health Care Committee’s report. This is in contrast to an increased national average of 10.5 percent.
Jacqueline Pridgeon, director of benefits and wellness, said maintaining low costs can largely be attributed to the "Ca$h in on Wellness" program.
“In-patient care is typically much more expensive (than preventative measures),” she said. “Going to see a doctor on a regular basis is much less expensive than going to the hospital to be treated.”
Through "Ca$h in on Wellness," participants can earn up to $335 per year in incentives for meeting requirements in four categories: health risk assessment, exercise, health care and wellness.
Employees can also receive benefits through the gain-sharing program, Pridgeon said. By completing all four "Ca$h in on Wellness" components, employees are eligible to share any positive balance remaining in the medical plans at the end of the year.
For the 2011-12 fiscal year, just under 250 employees received $600 each as participants in the gain-sharing program.
Lori Hella, associate vice president of human resources, said CMU has also avoided $11 million in health care costs in the past five years, as compared to the expenses of 11 other Michigan universities.
“Looking at the averages of other universities, we have been able to avoid expenses going up to that level,” she said. “We do things like purchasing our contracts through coalitions; going in as a group keeps costs low.”
Hella said CMU has an advantage just for the fact that health has always been a concern since the Health Care Committee formed in 1998.
“CMU has had a Wellness Program for a number of years,” Hella said. “We’ve been fortunate to have a culture at CMU that’s focused on maintaining health.”
