Minutes of March 20, 2003 Meeting
The meeting convened at 10:03 a.m. in room 817 Cathedral of
UPBC members present were: Tammeka Banks, Frank Cassell, James
Cassing, Jerome Cochran, Richard Colwell, N. John Cooper, Christine
Dollaghan, Jacqueline Dunbar-Jacob, Attilio Favorini, Gerald Holder, James
Maher, Maureen McClure, Barbara Mowery, Mary Ann Peterson, Arthur
Ramicone, Michael Stuckart, Philip Wion, and Stephen Wisniewski. Also
present were: Richard Henderson, Jeffrey Liebmann, Charles McLaughlin,
Robert Pack, and Paul Supowitz.
UPBC members not present were: David DeJong, Christopher Happ,
Arthur Levine, Christopher Riegel, Evelyn Talbott, Kevin Washo, and Thomas
Update on the Medical Insurance Contract
Cochran reported that with insurance plan modifications, moving to
a fully-insured program, and setting a target of 85% employer/15% employee
cost sharing, the incremental University budget obligation related to the
new medical insurance contract is $9.5 million. With the exception of
some minor modifications, Cochran reported that this contract represents
the best that could be expected given the current health care environment.
Cochran also discussed the issue of medical insurance coverage for
retired faculty. In the past, the University covered expenses beyond
Medicare and, as time passed, costs have increased dramatically and will
do so again in the coming year. Cochran reported that a human resources
consultant found that only 23% of employers nationally provide a retiree
insurance plan and, of that number, only 24% of the employers pay a
portion of the costs. The consultant also found that this proportion is
decreasing. Cochran added that the University has no service requirement
for eligibility to the program, which is unique. He suggested that a cap
be placed on the University's downstream liability and that a service
requirement of some sort (perhaps a formula combining age and years of
service) be imposed.
Cochran indicated that the final work on the parameters related to
the University's medical insurance plan should be finalized by mid-April.
He added that the University is making every effort to treat regional
campus employees equitably. Cochran asked faculty and staff leaders to
ameliorate concerns over premium increases, especially given that the
University has not increased premiums in five years.
Banks moved that the Committee support the proposed target
distribution of premium allocations of 85% University/15% employee.
Mowery seconded. The motion passed unanimously.
Update on FY 2004 Planning and Budgeting Parameters
Ramicone reported on the current status of discussions by the
Parameters Subcommittee. These discussions are in their early stages, and
the focus is on refining cost estimates and developing scenarios for
revenue estimates. The primary variables at this time include the
increases in tuition rates and employee compensation. The focus is on
ensuring that the parameters provide for the continued improvement in the
The meeting adjourned at 11:48 a.m.