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
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
-- 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
The meeting adjourned at 3:30 p.m.