Missouri State University

Board guiding principles 2005

MINUTES OF THE BOARD OF GOVERNORS
SOUTHWEST MISSOURI STATE UNIVERSITY
NOVEMBER 19, 2004

Mr. Burris then introduced Governor Duggan, Chair of the Healthcare Guiding Principles Committee, to present the committee’s recommendations. Mr. Duggan explained that the University presently has two committees working on employee benefits – a Healthcare Plans Review Committee that works with the medical and dental plans and a Fringe Benefits Committee that works with medical, dental, life insurance, long-term disability and other employee benefits. He stated that the charge of this committee was to provide Guiding Principles for the Healthcare Plans Review Committee specifically addressing the economics of the medical and dental programs. The four principles that they came up with were:

1) Present a medical and dental program to the Board that does not exceed 4.9% of the projected FY07 Operating Budget.

2) In that budget, provide for a reserve fund that does not fall below 60 days payout, nor exceed 90 days payout.

3) Provide for a wellness program within this budget that trains, educates, and provides incentives for employees to live a healthy life style, in an effort to reduce and/or minimize our future health care cost increases.

4) In order to ensure the Board receives the total impact of any program, the administrative team will report each year to the Board a breakdown of the total employee benefits package. This breakdown will provide both a dollar amount and as a percentage of the total operating budget as defined in # 1.

Mr. Duggan commented that this is a FY07 recommendation and it should be presented to the Board by May 2005. This will allow time for review and change by our September 2005 meeting. Should the Healthcare Plans Review Committee become deadlocked and not be able to present a final proposal by May 2005, Mr. Greg Burris, Mr. Howard Berriman, and Mr. Kent Kay will be asked to make their recommendations for the program to the Board. Dr. Burns commented that these recommendations are exactly what the board wanted – a plan for the administration to follow. Mr. Franks asked if the 4.9% was a long-term principle. Mr. Duggan responded that this needs to be approved every year. Hopefully, the wellness portion of this program will help reduce this percentage.

Ms. Neosha Mackey, Chair of the Fringe Benefits Committee, asked to address the Board. She commented that the Healthcare Guiding Principles Committee did not consult with the Fringe Benefits Committee on this project. She added that the Healthcare Plans Review Committee was supposed to review the costs of medical plan benefit changes and report back to the Fringe Benefits Committee – this has not been done over the last couple of years. There is a problem of coordination between the two committees. It is very important to straighten out who is responsible for what aspect of fringe benefits on campus. Mr. Burris commented that this is being worked out at the present time.