FY22 Meeting Minutes

Funded Retirement and Insurance Committee (FRIC) Meeting
October 1, 2021,
via zoom

Members present:

Jon Garfinkel, Michael Schueller, John Laverty, Nancy Davin, Cathy Koebrick, Dan Katz, Nicole Nisly, Angela Speers, Julie Urmie, Sarah Tallman, Anand Vijh

Members absent:

Anaya Prince, Cormac O’Sullivan, Chuck Wieland

Administrative staff present:

Joni Troester, Rebecca Olson

Visitors present:

Cheri Smith, Kara Wright, Jessica Wade, Dana Stafford, Julie Sexton, Cheryl Reardon, Britt Marcussen, Audra Haddy, Teresa Marshall, Kevin Zihlman, Siroos Shirazi

  1. Preliminaries: Meeting started on time. Joni Troester did the roll call. Committee reviewed the September meeting minutes.  Cathy Koebrick motioned to approve the minutes, Nancy Davin seconded, and the rest of the committee approved the minutes with a unanimous vote.

  1. Rate approval: Joni Troester informed the committee that President Wilson approved the new health-care plan rates for 2022.  There is no increase in dental plan rates for 2022.

  1. COVID updates: Rebecca Olson and Joni Troester (the administrators) provided updates on COVID-19 cases and coverage. Several points came up as follows:
    1. Following CDC approval, UEHC (University Employee Health Clinic) will soon be giving booster shots to employees meeting certain criteria (such as those over 65 years of age, or those having certain underlying health conditions). UEHC will be sending emails to eligible employees.
    2. The booster shot is approved for those who received the Pfizer vaccine in the first place. As of now, there is no similar approval for those who received Moderna or Johnson and Johnson vaccination.
    3. Recently President Biden released an executive order which mandates COVID vaccinations for employees who work for federal contractors employing more than one hundred employees. The university is working with the Board of Regents to determine next steps.
    4. Among approximately 44,000 employees and dependents on our health plans, there were 39 admissions to UIHC hospital for COVID in 2020. There were 11 admissions to UIHC hospital during first eight months this year. These statistics compare favorably with national averages.
    5. There continues to be no copay for COVID tests during the national public health emergency.  Members also have no cost share for inpatient, in-network treatment of COVID.  Starting 2022, coverage will revert back to standard plan coverage for inpatient, in-network treatment of COVID.  

  1. Fee leveling: The Retirement Fund Investment Committee approved a change to the administrative fee structure for UI retirement plans at TIAA. The intent of the change is to provide a consistent or “level” fee across all fund investments.  Currently, administrative fees vary among fund investments. As of January 1, 2022, an annual fee of 2.3 basis points will be charged to all fund investments. All plan participants will receive a letter in November 2021 informing them of this change.

  1. Open enrollment for 2022 benefits: Following a long-time practice from before the COVID pandemic, the open enrollment period will be November 1 to 15. This is the once-a-year opportunity for employees to make changes to their insurance benefits, outside of a qualifying life event (such as marriage or birth).  The administrators are making a strong effort to educate employees about the available benefits package at the university.  There will be YouTube videos of an overview of 2022 benefits and how to complete your enrollment in Employee Self Service. There will be both English and Spanish versions of the open enrollment benefits guide. There will also be a new online resource where employees can ask open enrollment questions that will be answered by a dedicated benefits staff member in the University Benefits Office.

  1. Pharmacy benefits: In May 2021, the committee had voted to investigate the pros and cons of moving to a copay approach of sharing the cost of prescription medicines as an alternative to the current coinsurance approach. The committee requested financial modeling of a change to copays. Under copay system, members pay a fixed dollar cost per prescription rather than a percentage of the total prescription cost.
    1. Wellmark modeled the financial impact of a change from coinsurance to copays, keeping the plan as financially neutral as possible. Another criterion was to keep Tier 1 copay to be zero as under the current plan design.
    2. Under the proposal, the copay would range from $0 for Tier 1 that includes many generics, to $150 for Tier 5 that includes non-preferred specialty drugs. Some members would pay the same cost as under the existing coinsurance plan, some 11,000 members will pay more, and some 4,000 members would pay less. Our plans have a $1,100 out-of-pocket maximum for drugs, which means that the likely financial impact on employees will be limited.
    3. The committee asked that the modeling be re-run to keep both preferred and non-preferred specialty tiers charging a coinsurance and also look at tier copay/co-insurance for Wellmark book of business. For the November, the committee will continue debating the pros and cons of copay and coinsurance.

  1. Access report: The administrators shared statistics on health plan member access to primary care, specialty care, tertiary care, etc., at UIHC hospital. As usual, these statistics provided by UIHC look good. Data shows that 98%, 82%, and 70% of members looking for primary, secondary, and tertiary care are seen within 10 days.

  1. Adjournment: Nicole Nisly made a motion to adjourn. Nancy Davin seconded. Committee approved unanimously.

Recorder: Anand M. Vijh

Tippie College of Business

Funded Retirement and Insurance Committee (FRIC) Minutes
September 3, 2021
11:30 – 1:00 pm

Members Present:

Nancy Davin, Jon Garfinkel, Co-Chair, Dan Katz, Cathy Koebrick, John Laverty, Nicole Nisly, Cormac O’Sullivan, Anya Prince, Sarah Tallman, Mike Schueller, Co-Chair, Angela Speers, Minute Taker, Julie Urmie, Anand Vijh, Chuck Wieland

Admin. Liaisons:

Rebecca Olson, Joni Troester


Audra Haddy, Megan Hammes, Cheryl Reardon, Dana Stafford, Jessica Wade, Kara Wright, Brit Marcussen, Jill Valde, Cheri Smith, Teresa Marshall

  1. Introductions/Role call – Garfinkel and Schueller
    1. Sarah Tallman has joined the FRIC committee this year.
  2. Approval of May meeting minutes – Garfinkel and Schueller
    1. Corrections to spelling and date were noted. A motion to approve was made by Chuck Wieland, seconded by Nicole Nisly, approved unanimously.
  3. Quarterly Report – Olson
    1. Rebecca Olson presented UIChoice and UISelect dashboard metrics which included costs and utilizations for 1st and 2nd quarter 2021.
  4. Rate Setting for CY2022 – Troester
    1. Dental - Proposed 0% increase in dental premiums based on cost and utilization across all family statuses.
    2. UIChoice and UISelect - No change to premium cost share for UIChoice and UISelect.
      1. UIChoice EE and Dual Spouse Family premium cost share remain at 10% for 2022.  UIChoice all other family status premium cost share remain at 20% for 2022.
      2. UISelect EE and Dual Spouse Family premium cost share remain at 0% for 2022.  UISelect all other family status premium cost share remain at 20% for 2022.
    3. Rate setting process discussed. Assumptions and data used in rate setting shared.  Given COVID and the unique past year of plan utilization, University Benefits worked with AON to model projections.  To account for irregular utilization during the pandemic, AON used two years of claims data and adjusted claims using COVID factors to account for suppressed claims during 2020 and future COVID related costs.  Projections also include increased Wellmark administrative fees for CY2022.
    4. UIChoice will be increasing 7.1% for CY22 and UISelect will be increasing 2.9% for CY22
    5. The CY22 Open Enrollment guide will be available in Spanish for employees during this fall
    6. A motion to approve the CY2022 dental and health rates was made by Chuck Wieland, seconded by Nicole Nisly, approved unanimously.
    7. A motion to cancel the September 10th FRIC meeting was made by Chuck Wieland, seconded by Nicole Nisly, approved unanimously.
    8. For the Medicare carve-out retiree health plans, CY2022 rates are:
      1. UIChoice Single increasing by 6.6%
      2. UISelect Single increasing by 6.5%
  5. Farmland Update – Troester
    1. Joni Troester shared an update on Farmland.  Faculty Senate approved a resolution in April 2021 and Staff Council approved a resolution July 2021 urging FRIC and RFIC to ask TIAA to address transparency and sustainability issues.  Next steps are a campus meeting with TIAA Nuveen Leadership of Responsible Investing on October 27, 2021. TIAA will meet with Sustainability Charter Committee, Shared Governance Leadership, and RFIC. Joni Troester will provide a follow-up at our November FRIC meeting.
  6. COVID Updates – Troester/Olson
    1. Joni Troester provided an update on vaccination planning.  There will be a 3rd dose for select populations, currently by appointment at UEHC.  Also, a booster is approved for 8 months out from second dose beginning September 20th, 2021.
    2. Rebecca Olson provided an update on COVID related health plan provisions.
      1. Plan members currently have no cost sharing for COVID testing and related services during the national public health emergency. Members also have no-cost share for inpatient, in-network treatment of COVID-19 through December 31, 2021. Coverage will revert back to standard plan coverage for inpatient, in-network treatment of COVID-19 starting January 1st, 2022.
  7. WellMark Changes for CY2022 – Olson
    1. Rebecca Olson shared the following health plan changes. Bereavement and family counseling will be covered as of January 1st, 2022. Family counseling includes marriage counseling, but group counseling is excluded. Dental treatment for accidental injury needing repair increased to 24 months as of January 1st, 2022.  Surgical Removal of Impacted Teeth is covered only with concurrent medical needs as of January 1st, 2022.
  8. Announcement
    1. Flexible Spending Account (FSA) will be transitioned to a FSA administrator for 2023.  Numerous advantages to having a FSA administrator process claims versus in-house, manual claim processing: Debit card, Faster claim processing, Ability to quickly respond to any federal changes to FSA rules.  This will result in an improved employee experience and greater efficiency to the plan. Timeline for transition: Recommended- Fall 2021; Vendor Selected- Spring 2022; Implemented- January 1, 2023.
  9. Other Updates – Troester/Olson
    1. Access Reports
    2. Board of Regent Review

Chuck Wieland made motion to adjourn. Cathy Koebrick seconded. Unanimous approval.

Next Meeting
October 1, 2021
Zoom Meeting