Andrews University

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Andrews University

• Employee Benefits
• Plan Year 2006/2007
• March, 2006

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Andrews University Tuition Assistance Policy -
2006
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Medical Costs As a Percent of GDP  

• 2001 - 14.1
• 2005 - 15.6
• 2015 - 20
• By 2015, 1 out of every
• 5 spent in the US
• economy will go for
• healthcare

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Healthcare Trend - 2005

• 9.5 Medical
• 18.5 Prescription Drug

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2006 Budget vs. Actual Medical Benefits
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The Cost of Employee Benefits

• Benefits 18,000/employee/year
• Free Tuition
• Educational Assistance
• Medical/RX/Dental/Vision
• Life and Disability
• Workers Compensation
• Retirement
• Moving
• Other Misc. Benefits

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Andrews University 2005/2006 Plan Year

• Currently at 105 of 2005/2006 AU 8 month Benefit
  Budget
• 6 claims exceeding 75,000 (661,141)
• 2 claims exceeding 125,000
• Office visits - 117 PEPM
• Regional average office visit cost PEPM 60
• Prescriptions - 114 PEPM
• Regional average prescription drug cost
  PEPM 78 - 85

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Andrews University 2005/2006 Plan Year
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Andrews University 2006/2007 Plan Year
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Over The Counter Drugs

• Request a prescription from your doctor for
• Claritin
• or
• Prilosec OTC
• Fill prescription at either the pharmacy or
  through mail-order with a 0 co-pay

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Did You Know?

• Brand-name vs. Generic Drugs
• Nearly half of the drugs on the market today
  offer a generic substitution
• Generics contain the same active ingredients as
  brand-name drugs
• Generics must deliver the same amount of active
  ingredients into a patients bloodstream in the
  same amount of time
• Generics meet the same FDA standards as their
  equivalent brand-name drugs
• The cost of generics is typically 30 60 less
  than its counterpart
• Shop around drug prices vary by pharmacy
• Go to www.Pharmacare.com or ask your doctor for
  additional information

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Did You Know?

• Emergency Room vs. Doctors Office
• The average cost for the use of the Emergency
  room is 400
• The average cost for the use of the Doctors
  Office is 60
• The average wait time in an Emergency Room is 1.5
  hours
• The average wait time in a Physicians Office is
  45 minutes

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Health Management Program

• Move from reactive to proactive system
• A system that starts before a disease is present
• Emphasis is on prevention, not treatment
• The goal is to enhance health
• The potential for saving dollars and lives is
  increased

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Health Management Program

• Components of Health Management Program
• On-site health screenings
• Health Risk Assessment
• Disease management health coaching
• On-site health and wellness education

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Personal Wellness Profile

• Includes
• Personal wellness profile questionnaire
• Bring completed in pencil to your scheduled
  appointment
• Blood pressure measurement
• Body composition analysis
• Cardiovascular risk profile
• Finger stick
• 12 hour fast
• Receive a discount on employee contributions when
  both employee and spouse participate

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Personal Wellness Profile

• One hour group interpretation seminars delivered
  on-site
• Time allowed for one-on-one questions
• Multiple sessions scheduled to accommodate
  department needs
• Participants will receive their confidential 21
  page report to assist them with making positive
  lifestyle changes

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Personal Wellness Profile

• Health screens will be held from
• 630AM 1100AM on
• April 18
• April 20
• April 21
• May 16
• 400PM 700PM on
• May 17
• Register today or on-line at www.Andrews.edu

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Third Party Administrator (TPA)

• Review current TPA services (IBA others)
• Objectives
• Accommodate current/future plan designs
• Secure competitive reinsurance coverage
• Secure high quality customer service for
  associates
• Secure quality Pharmacy Benefit Manager (PBM)
• Maintain access to our network of health care
  providers

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Third Party Administrator (TPA)

• Objectives contd
• Obtain access to real time web based tools
• Automated enrollment, EOBs, etc.
• Negotiate better fee schedules for medical and
  pharmacy benefits (reduce costs)
• Obtain access to disease management tools to
  enhance our Health Management Program
• State of the art data mining