ISU faculty, staff anticipate increase in health-care costs
July 5, 2000
Due to concerns with the university budget, ISU faculty and staff could be facing a potential 20-percent increase in the cost of their health care, administrators say.
And with health-care costs around the country rising, they’re not alone.
Iowa State has afforded for 4 percent of the undetermined increase. However, with numbers such as a 20-percent increase being a possibility, there likely will be a shortfall.
ISU President Martin Jischke acknowledged that costs are increasing, but an actual figure for the university is still unknown.
“We believe the actual costs of benefits will go up higher than [4 percent], and the difference will have to be made up by employees either electing less costly benefit programs or by contributing more to the cost of their benefits,” he said.
ISU Faculty Senate President David Hopper said past increases have typically been in the double digits.
“The increase could be, most probably would be, somewhere in the range of 10 to 20 percent, much in line with what it’s been in the past several years, but we don’t know an exact figure yet, and we probably won’t till around December,” said Hopper, professor of veterinary diagnostic and production and animal medicine.
Johnny Pickett, assistant vice president for Business and Finance, said university officials are predicting a 10-percent increase, but that may be an underestimate.
“Health-care inflation seems to be accelerating, so we really don’t know. In fact, were just about to start the process of having an outside consultant look at our health-care cost experience and help us figure out what the rates should be for next year,” she said. Pickett said she guessed the increase would be around 14 or 15 percent.
Hopper said the concern lies within the fact that the university is contributing single-digit help for the double-digit increases.
“The employee share of the benefit program will continue to cost more and more and more, and very soon we will reach a point where I’m sure faculty and staff will have to ask the question, ‘Can I afford this?'” he said.
Warren Madden, vice president for Business and Finance, said increases in health care will be examined this summer.
“Health-care costs have been generally rising in the range of 1 to 1.5 percent a month, so we have been talking about increases,” he said. “The University Benefits Committee, which provides advice, has been looking at options over the summer.”
Iowa State is not alone in facing the health-care question, Hopper said.
“It’s a national issue; it’s not just an Iowa State University issue. There are 45 million Americans out there who don’t have health insurance right now because it is so costly,” he said.
The solution to the issue of health care will have to come from a higher level than the university, Hopper said.
“This is going to be a continuous battle, and ultimately the answer is going to have to come at a federal level. There’s going to have to be some program to try and address the extremely high cost of health care,” he said.
Hopper said Iowa State has done several innovative things during the past two years that have helped to ease the financial burden the increases have brought on.
“Going to our new health-care program, I think it was three years ago, has really helped, where people have a choice and can go with amenity program or a HMO where they can select the types of coverages that they want. All of that has helped faculty,” he said.
The ISU Faculty Senate will also be examining the possibility of providing health care to same-sex partners, Hopper said.
“The senate feels that domestic partners should be able to receive the same benefits that faculty who have spouses do,” he said. “Iowa State is working on a proposal.”