2008 Woodie Awards
Healthcare solution requires consumer responsibility
Brian Graney
Issue date: 4/24/07 Section: OpEd Page
While Miami University students become increasingly frustrated with climbing tuition rates on campus, a committee was formed to probe the rising costs of health care for Miami employees. Miami spent roughly $22 million on health benefits for full-time faculty and staff last year. According to the Miami University benefits committee, that represents a 16.5 percent increase in health care-related expenses compared to the national average of only an 8 percent increase. Why is Miami spending so much on health care? Quite simply, the health insurance plan afforded to Miami employees is simply too generous and risks draining Miami's already limited financial resources.
For a visit to the emergency room, a Miami employee only has to pay a $50 co-payment. That's it. A visit to a hospital emergency room that could total in the thousands costs the employee only $50. This results in the overuse of hospital services and ridiculous but unfortunately true stories of employees visiting the emergency room dozens of times throughout a calendar year for mundane and ordinary symptoms like the flu and earaches. The overuse of medical care is costing Miami a substantial premium. Fortunately, the university is acutely aware of this problem and formed the benefits committee to address it. The recommendations of the committee have been presented to the Miami board of trustees and hopefully will soon be adopted.
Some of the committee's recommendations are obvious and relatively easy to implement, such as increased use of preventative care like checkups with general physicians and the use of wellness programs that promote exercise and diet. But the committee has also suggested a revamping of the Miami health insurance program by offering a Health Savings Account (HSA) to employees. The HSA operates like any savings account but is not taxed when used for health care costs. Miami would contribute $750 to the HSA with the individual employee contributing another $750 on an annual basis. After that $1,500 is spent, there is 100 percent coverage of medical expenses in the network. Additionally, all preventative care (checkups, mammograms, colonoscopies, etc.) is fully covered. The money is the HSA can be rolled over from year to year and taken out for non-medical reasons, but would be taxed much like an Individual Retirement Account (IRA).
For a visit to the emergency room, a Miami employee only has to pay a $50 co-payment. That's it. A visit to a hospital emergency room that could total in the thousands costs the employee only $50. This results in the overuse of hospital services and ridiculous but unfortunately true stories of employees visiting the emergency room dozens of times throughout a calendar year for mundane and ordinary symptoms like the flu and earaches. The overuse of medical care is costing Miami a substantial premium. Fortunately, the university is acutely aware of this problem and formed the benefits committee to address it. The recommendations of the committee have been presented to the Miami board of trustees and hopefully will soon be adopted.
Some of the committee's recommendations are obvious and relatively easy to implement, such as increased use of preventative care like checkups with general physicians and the use of wellness programs that promote exercise and diet. But the committee has also suggested a revamping of the Miami health insurance program by offering a Health Savings Account (HSA) to employees. The HSA operates like any savings account but is not taxed when used for health care costs. Miami would contribute $750 to the HSA with the individual employee contributing another $750 on an annual basis. After that $1,500 is spent, there is 100 percent coverage of medical expenses in the network. Additionally, all preventative care (checkups, mammograms, colonoscopies, etc.) is fully covered. The money is the HSA can be rolled over from year to year and taken out for non-medical reasons, but would be taxed much like an Individual Retirement Account (IRA).
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