Minutes of April 15, 2004 Meeting

	The meeting convened at 2:05 p.m. in the Babcock Room, 40th Floor, 
Cathedral of Learning.

	UPBC members present were: James Alexander, Jerome Cochran, 
Richard Colwell, N. John Cooper, David DeJong, Christine Dollaghan, 
Jacqueline Dunbar-Jacob, Gerald Holder, James Maher, Linda Marts, Carol 
Neuner, Mary Ann Peterson, Arthur Ramicone, Philip Wion, and Thomas Wolf.  
Also present were: Richard Henderson, Jeffrey Liebmann, Michael Moran, and 
Robert Pack.
	UPBC members not present were: Nicholas Bircher, Frank Cassell, 
Liz Culliton, Ronald Hoelzeman, Lindsay Howard, Arthur Levine, Maureen 
McClure, Michael Stuckart, Evelyn Talbott, and Stephen Wisniewski

Approval of Minutes and Report of the Chair

	The minutes of the February 16, 2004 UPBC meeting was approved.  
Maher discussed the  ongoing work of the UPBC subcommittees, adding that 
the ad hoc Subcommittee on Strategic Issues had held some meaningful 
discussions, bringing newer members of the Committee up to date on 
planning and budgeting issues.

Discussion of Employee Benefits Changes for FY 2005

	Cochran reported on the FY 2005 employee benefits package 
featuring the following changes:

-- A new pretax commuter flexible spending account will be available 
for those employees who currently do not have payroll-deducted University 
parking leases.
-- The vision insurance plan, under a new two-year contract with 
Clarity Vision, will remain at the same premium level while adding the 
annual provision of eye examinations and new frames and lenses, regardless 
of the age of covered individuals.
-- A new three-year agreement with Aetna Life Insurance Company, 
which saved the University $500,000 in increase costs, will offer a 
reduction in optional group life insurance rates and will introduce four 
new life insurance options covering spouses and dependents.
-- The dental plan has been renewed with United Concordia for a 
two-year period and will include an overall rate increase of 7.9% in the 
first year and none in the second.
-- The medical insurance plan options will continue through UPMC 
Health Plan with some plan modifications, including: co-payments for 
low-tech imaging procedures such as X-rays ($5 on the first four) and 
high-tech imaging procedures like MRI's ($25 on the first four); a 
generic-first provision in the prescription drug plan that requires 
patients to obtain the generic equivalent of a brand prescription first, 
when available; increased prescription drug co-payments for preferred 
brands ($20 to $24) and non-preferred brands ($40 to $48); and modest 
increases in medical plan premiums.

	For instance, the individual rate under the Panther Gold Plan (the 
most popular of the plans with 8,545 out of 9,675 total employees) will 
increase from $35 to $38 per month; parent/child coverage will increase 
from $80 to $95 per month; employee/spouse coverage will increase from 
$128 to $149 per month; and family coverage under that plan will increase 
from $192 to $218 per month. Those in the Panther Basic Plan, on the other 
hand, will pay the same rates as last year.  Cochran indicated that the 
modifications in the medical insurance plan helped reduce projected cost 
increases more than $1 million.

Presentation of the FY 2003 Revenue and Cost Attribution Study

	Wion summarized the changes made this year in the revenue and cost 
attribution methodology to simplify the process by which the analysis is 
produced.  He pointed out the appendix that discusses support units and 
attribution drivers and the elimination of the step-down method used 
previously.

	The meeting adjourned at 3:30 p.m.