From: Linda Lonsinger, Interim Associate Vice President for Finance and Administration 
          for Human Resources

Re:     Health Care Credit

President Roderick J. McDavis, Executive Vice President and Provost Kathy Krendl, and Senior Vice President Bill Decatur have announced that a one-time health care credit based on employee contributions will be applied to faculty, classified staff, and administrative staff pay checks at the end of fall quarter. 

The decision to provide the credit was reached after discussions with constituent groups, including representatives from Faculty Senate, Classified Senate, and Administrative Senate. 

The cost of providing health care and related benefits increased by $1.8 million from Fiscal Year 2005 through Fiscal Year 2008.  However, actual expenditures were less than projected.  Human Resources is conducting research to identify how, in a climate of increasing health care costs, our expenditures have been coming in under budget. Lower-than-expected claims utilization has played a key role, but we also want to understand the degree to which renegotiating our major health care contracts and other factors may be contributing.

The total amount of the credit, which is based on employee contributions, is expected to be $374,000.  The individual one-time credits will be the equivalent of 1.4 to 1.5 times the monthly health care premiums paid by employees. 

The credit will be applied to payroll checks on November 21 for classified staff, November 30 for administrative staff, and December 1 for faculty.

Senior Vice President Decatur has requested that University Human Resources approach the AFSCME union to discuss the potential for a health care credit for union members.  AFSCME members will be updated regarding the outcome of the discussions.

If you have any questions regarding the health care credit, please contact Greg Fialko, Director, Benefits, University Human Resources, at 740-593-1639 or fialko@ohio.edu.