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CUPA-HR Survey Finds Marked Increase in Colleges and Universities
Offering Healthcare Coverage to Same-Sex Domestic Partners
The number of higher education institutions offering healthcare benefits for same-sex domestic partners has risen by 30 percent over the past nine years, according to findings from CUPA-HR’s 2015 Employee Healthcare Benefits in Higher Education Survey. Seventy percent of institutions that participated in this year’s survey offer healthcare coverage to same-sex domestic partners; in 2006, that number was 40 percent. Nearly half of this year’s respondents also offer healthcare benefits to opposite-sex domestic partners.
“We are very pleased to see that so many colleges and universities provide healthcare benefits for same-sex domestic partners,” says CUPA-HR President and CEO Andy Brantley. “This clearly underscores the importance that higher education places on diversity and inclusion. It will be interesting to see what unfolds over the next year, as the Supreme Court’s recent ruling affirming same-sex couples’ right to marry in all 50 states will potentially create a very different landscape in benefits administration. We look forward to working with colleges and universities as they determine their next steps.”
Other Findings
Impact of the Affordable Care Act
The survey also found that, in response to the Affordable Care Act, institutions are increasingly passing on more of the cost of healthcare to employees. One in five institutions reported that last plan year they increased in-network deductibles, increased out-of-pocket limits, increased employees’ share of dependent coverage costs and increased employees’ share of premium costs. In some instances, the percentage increase in premiums for employees was three times that of the increase for institutions.
“Escalating healthcare costs continue to be a significant challenge for higher education,” says Brantley. “We are concerned that institutions are being forced to absorb additional costs while also requiring employees to pay higher deductibles and copays and/or move to high-deductible health plans. Unfortunately, many employers have no choice but to shift some of those costs to their workforce.”
Institutions are also keeping a close eye on hours worked by part-time employees and adjuncts, as the ACA mandates that employers must offer healthcare coverage to any employee working 30 or more hours per week. The survey found that, for all institutions combined, about 60 percent of both part-time staff and part-time faculty, on average, work less than 30 hours a week. Sixty-six percent of respondents reported that they are using or plan to use the guidance provided by the IRS on February 11, 2014, regarding a reasonable method for calculating adjunct work.
Cost of Healthcare Benefits
The average annual total premium for all four plan types combined — preferred provider organizations (PPO), health maintenance organizations (HMO), point of service (POS) and high-deductible health plans (HDHP) — was $6,597 for employee-only coverage and $18,087 for employee + family coverage. The average percent change in total premium costs from 2014 to 2015 varied by plan type. For employee-only coverage, the largest increase was 4 percent. For employee + family coverage, the largest increase was 6 percent.
Healthcare Basics
- PPO plans continue to be the plan of choice for a majority of institutions – 83 percent of respondents offer PPO plans. However, HDHPs continue to increase in popularity, with 46 percent of respondents offering this type of plan (up from 17 percent in 2009).
- A substantial percentage of institutions offer healthcare benefits to part-time staff and faculty (41 percent and 37 percent, respectively), and most of those also pay part of the premium. Almost none of the institutions not offering healthcare benefits for part-time employees provide financial support for enrollment in a public exchange.
- Slightly more than half of the respondents offer health benefits for retirees under 65 and slightly less than half do so for those over 65. About 60 percent also pay part of the premium. Only a small percent use private health exchanges for retirees.
For more information on CUPA-HR’s 2015 Employee Healthcare Benefits in Higher Education Survey, or to order results, visit www.cupahr.org/surveys/benefits.aspx.
About the Survey
The 2015 Employee Healthcare Benefits in Higher Education Survey collected detailed data on healthcare benefits, including formal wellness programs, four different types of healthcare plans (PPO, HMO, POS and high-deductible plans), prescription drug benefits and dental plans, and addressed both “essential” and “non-essential” health benefits. The survey also addressed for the second year the impact of the Affordable Care Act on healthcare benefits provided by institutions.
The survey represents 525 institutions, including 24 systems reporting in the aggregate for all of their campuses. Private institutions comprise 49 percent of the total and public institutions comprise 51 percent of the total. Thirty-one percent of respondents are from master’s institutions, 23 percent are from bachelor’s institutions, and 22 percent are from doctorate institutions. Associate’s and special focus institutions comprise 13 percent and 10 percent of respondents respectively.
About CUPA-HR
CUPA-HR is higher ed HR. We serve higher education by providing the knowledge, resources, advocacy and connections to achieve organizational and workforce excellence. Headquartered in Knoxville, Tennessee, and serving more than 18,000 HR professionals and other campus leaders at more than 1,900 member organizations around the country and abroad, the association offers learning and professional development programs, higher education salary and benefits data, extensive online resources and just-in-time regulatory and legislative information. Our membership includes 91 percent of all U.S. doctoral institutions, 77 percent of all master’s institutions, 57 percent of all bachelor’s institutions and 600 community colleges and specialized institutions.