Regents' health care proposal questions retiree benefits
Future employees of the University System of Georgia would no longer receive retiree health care under a cost-saving plan drafted by staff.
The proposal is one of several developed to help the system better manage future health care costs, but it is not a top choice from staff because it could have a negative effect on hiring and retention, spokesman John Millsaps said.
Still, the idea has made some nervous.
University of Georgia President Michael Adams shared his concerns Wednesday during a question-and-answer session on budget issues for the upcoming fiscal year.
“I have already expressed to the chancellor my belief that any substantial change at this level in our benefits would be a significant disincentive in hiring the kind of people that we would want to hire,” Adams said. “I have tried to express that in a way that is both forceful and civil.”
Adams said several people will attend a June 3 meeting of the Board of Regents’ health and benefits committee to “voice our displeasure” with the recommendation.
The committee will submit final recommendations to the regents, who could vote on changes during meetings scheduled for June 8-9.
Other suggestions include adding tobacco surcharges, making minor prescription changes and raising benefit eligibility hours t0 30 hours a week from 20, according to a PowerPoint presentation developed by the committee.
While eliminating retiree health eligibility for new hires "is not a high recommendation from staff, we have to look at all the options out there," Millsaps said.
The University System budgeted $422 million to spend on benefits during the 2010 calendar year -- an increase of $121 million since 2007.
Stuart Ivy, president of the UGA Staff Council, opposed proposed changes to retiree benefits.
"That is a very private sector thing to do, and if they're going to do that, I want to hear that they've increased salaries like they do in the private sector," Ivy said.
