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System mulls change in care

May seek break from state plan

Human resources officials in the UNC-system president's office are cautiously exploring the idea of a change in the system's relationship with the state health care plan.

UNC officials are planning to examine the feasibility of creating a pilot program that would grant the university system greater flexibility in determining costs and benefits for employee health care.

Currently, all faculty and staff at system schools are covered by the N.C. State Employees Health Plan. Human resources officials in the Office of the President are looking at options for establishing a distinct program for employees of the system's 16 universities.

"We're basically trying to work on developing a pilot health care system for the university employees that would be within but separate from the state health plan," said Kitty McCollum, the system's associate vice president for human resources. "We're concerned about the adequacy of the current health plan."

Health care coverage has been a major issue for university administrators as premiums and deductibles have risen steadily in recent years.

"It is something that is continually looked at," said Karin Abel, benefits director for UNC-Chapel Hill. She agrees that the state's health care package presents serious problems for many faculty and staff. "Cost is the main issue," she said. "It costs employees too much to cover their dependents."

To extend personal health coverage to include immediate family members, employees must pay $428 per month, regardless of salary.

"We have seen a 20 percent decrease in the number of employees that have selected dependent coverage between 1998 and 2003," Abel said. "I think we should support them better."

Victor Landry, senior vice president of the system's Association of Student Governments, has attended a preliminary meeting with system officials to try to determine how university health care might be reformed.

"The idea is to take what the state spends on faculty and staff benefits right now and see if we can find a plan that is a better value than what is currently offered. It would have to provide additional benefits for the same or less money."

Many state university systems offer employees a choice between several different insurance providers, as opposed to the single state-sponsored health care plan available to UNC faculty and staff.

Joey Payne, director of employee benefits for the University of Kentucky, said that remaining apart from the state-provided program gives his school much greater autonomy.

UNC-system officials are quick to stress that they are simply exploring the idea of a pilot program and are still in the discussion phase of planning.

"We're trying to develop a plan that would be different from the state health plan, but I don't know what that would look like yet," McCollum said. "We've got a lot more studying to do."

The Office of the President hopes to have a report prepared by the end of the year.

Contact the State & National Editor at stntdesk@unc.edu.

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