Medical Insurance 2016 - FAQs
Why is Loyola changing the financing of its health insurance?
Loyola is examining all areas of university operations for potential cost savings and efficiencies. Part of this evaluation has included a cost savings analysis of our current medical insurance coverage provided to faculty and staff.
What about our current health insurance will change?
Currently, the university pays a premium to UnitedHealthcare, and they assume all of the risk in the form of paying claims. Loyola will transition to a self-funded model beginning in 2016.
By closely monitoring the national health care market, Loyola determined that, based on medical utilization, continuing to utilize this structure would result in a 17 percent premium increase for our employees. By becoming self-funded in 2016, employee contribution will only increase by approximately 5 percent in the year ahead.
What is a self-funded health insurance model?
Under a self-funded health insurance model, the employer assumes the direct risk for payment of the claims for benefits. Beginning in 2016, Loyola will pay UnitedHealthcare to administer the plans, rather than funding the premiums.
Will current employee health coverage be affected by Loyola’s transition to a self-funded health insurance model?
Current employee coverage will not change substantially. For example, provider networks, co-pays, and deductibles will remain the same in 2016.
What are the benefits of using a self-funded health insurance model?
In the short term, using a self-funded health insurance model will result in significant tax savings for the university. In years with less medical utilization, Loyola will reap the benefit of not having set paid premiums.
When does the transition to a self-funded health insurance model go into effect?
On January 1, 2016, all of Loyola’s health plans will be self-funded.
Who can I contact for more information on this transition?
For more information on the transition to a self-funded health insurance model, please contact Ross Matthews at email@example.com.