Purdue’s medical plan budget for this year is expected to be $163 million and the university is forecasting a 7% increase for next year. As a result, employees will see insurance premiums go up as well.
Employees in the Copay plan will see premiums increase 30%, the Incentive plan’s premiums will rise 25%, and there will be a 15% increase in the Choice plan’s premiums.
Smokers will have to pay a $500 surcharge next year, unless they take part in a certified cessation program. This year’s fee for tobacco users is $250.
Next year, the university will cover 83% of employees’ health care costs, instead of 85%. The university-employee split will be 80-20 the following year.
The board of trustees is expected to approve the health plan changes at its meeting Friday morning. The Audit and Insurance Committee of the board already approved the proposal. All Purdue employees, including Extension Service employees in all 92 counties will be affected by the move.