Correction appended
Although College officials have been criticized for changes made to employee benefits during recent budget reduction efforts, benefits changes fall in line with similar national trends, such as rising health care premiums for college and university faculty and staff. According to an annual survey released by the College and University Professional Association for Human Resources, nationwide premiums for the average health care plan type increased by approximately 7 percent over the past year.
The survey, which was completed by over 400 institutions, found that individuals electing employee-only coverage experienced an average increase of 6.7 percent, as opposed to the 3.7 percent increase during the previous year. Premiums for combined employee and family plans went up by 7 percent over the previous year, in which premiums increased 5.7 percent from 2008. As a result, the average employee paid $5,608 for employee-only coverage and $15,248 for family coverage this year, the survey reported.
The data suggest that institutions throughout the country have made alterations to employee benefit plans as a result of their economic plight, CUPA-HR President and CEO Andy Brantley said in a press release.
"It is unfortunate that many institutions have had to shift additional benefits costs to employees," Brantley said in the press release. "We know that institutions are struggling to meet all budgetary obligations while continuing to provide a comprehensive benefits package to employees."
At Dartmouth, administrators finalized a new benefits package in June that will include higher health insurance co-payments and lower retirement contributions in an effort to close a $100 million budget gap over the course of two years, The Dartmouth previously reported.
College employees will be required to pay between 2.85 and 45 percent of the total premium under the new benefits plan, which will take effect on Jan. 1, 2011, former Chief Human Resources Officer Traci Nordberg told The Dartmouth in June. Currently, employees share between 4 and 31 percent of the total cost of premiums.
Nordberg left the College in August for Vanderbilt University and Medical Center, where she now heads the University's office of human resources.
Although the exact premium rates for next year cannot be known until employees enroll for their health insurance this fall, according to the College Office of Human Resources website, the College's lowest-paid staffers will face an estimated 26 percent increase in premium cost in the coming year.
The percentage of colleges that pay the entirety of employee premiums has decreased significantly in recent years, while out-of-pocket expenses have continued to rise, according to the survey.
Dartmouth's new benefit plan has attracted criticism from Dartmouth employees and union members.
"Right now the co-pay is $10, and it's expected to go up," Service Employees International Union Local 560 President Earl Sweet said, referring to employee payments for doctor visits. "It's going to be very harmful for all the employees, especially people with kids and spouses that are not well."
At Columbia University, pre-tax premiums increased by as much as $48 per month for individuals in the middle salary bracket electing family coverage between 2008 and 2009, according to the school's human resources website. The rise in costs between 2009 and 2010 jumped to over $100 per month for some plans.
Semimonthly employee costs for some family coverage plans increased over $100 at Cornell University, according to the University's human resources department.
While fewer than half of the colleges in CUPA-HR's survey have a retiree benefits plan in place, the median amount contributed to retirements accounts per employee increased between 2008 and 2010, according to the fact sheet.
The College, however, expects to see a decline in the amount of an employee's base salary that is set aside for retiree benefits when its new plan goes into effect, The Dartmouth previously reported.
The death benefit policy, which provides $5,000 to the family of a retiree upon death, was also eliminated for all employees retiring after the end of this year, The Dartmouth previously reported.
