News Archives - 2003

Premiums for health insurance at Augsburg College will either remain flat or drop significantly for the majority of employees in 2003 depending on the type of coverage selected.

For those on the Double Gold plan, premiums will be unchanged from 2002 rates, according to Cindy Greenwood, assistant director in human resources. Per month premium rates for 2003 will be $63 for single coverage, $254 for single plus one, and $347 for family coverage. The even better news for employees on the $500 Deductible (CMM) Plan is that rates will drop. Per month premium rates for 2003 in the CMM plan will decrease from $37 to $20, single plus one will decrease from $201 to $180, and family will decrease from $275 to $230.

The $500 Deductible plan, according to Greenwood, places on employees a greater element of risk in the way of higher potential out-of-pocket expenses. "Because of that, we have tried to keep the premium costs lower so that there is a substantial differential between the two plans (Double Gold and CMM). We attempt to make the premium savings great enough to exceed the higher out-of-pocket costs for most employees over time," Greenwood said.

Over the past two years of increases and different employee/College cost-sharing applications, that differential has become smaller, and this year's adjustments will help restore the larger margins between the two programs.

Betty Wade, Director of Human Resources and Chief Operating Officer, said there are several reasons the College is able to keep premium fees flat or decrease them this year.

The premium stability, she said, can be attributable to three things: 1) The pharmacy co-pay procedure implemented last year has encouraged the use of generic drugs and cut down on the number of unneeded prescriptions being filled; 2) There were fewer large claims this year. In 2000, the College had 11 claims exceeding $30,000, and in 2001 there were 8 claims exceeding that amount. This year, thus far, only 4 claims have been that high; and 3) More outpatient services have replaced inpatient hospital stays, again cutting down on insurance costs.