Health Care Cost Savings Key Issue in the Ivory Tower

Seven in 10 of the institutions of higher learning told The Segal Company for its poll that administrators had instituted tiered prescription drug coverage while another 12% either planned the move for the coming year or were actively considering it. Meanwhile, 65% of the Segal respondents said they had already cost-shifted more of the health coverage expenses to both workers and retirees and another 29% either planned it or were actively pondering the move.

The list of health cost increase responses also included:

• pored over medical and drug utilization data to find drivers of increased cost – 58% done, 24% planned or considered
• banded together with similar employers to hammer out group rates with suppliers – 39% done, 35% planned or considered
• negotiated with pharmacy benefit managers for better deals – 27% done, 23% planned or considered.

Separately, several respondents indicated that they also met with employees to discuss the impact of rising health-care coverage rates and established incentives to use mail-order prescription drug suppliers.

Also, it was abundantly clear that issue is as much of a hot button on campus as it is with other employers. Some 95% of respondents said the cost hikes were either extremely or moderately important – significantly ahead in those classifying it as extremely important compared to the effects of higher education funding cutbacks and defining HRs role as a campus strategic leader.

The survey covered 61 members of the College and University Professional Association (CUPA).