By: Hailey Colwell
As the University of Minnesota adjusts its employee healthcare plan to accommodate the Affordable Care Act when it takes effect in 2014, some employees are concerned about how increased costs could affect them.
Because the recommended changes include increased out-of-pocket expenses for employees, some are arguing that the changes are unfair to employees on the lower end of the pay scale — and that the University is using the new legislation to justify shifting costs onto the lowest-paid employees.
In order to avoid a $48 million tax on the University, the Office of Human Resources has proposed changes to the UPlan — the health benefits plan currently offered by the University.
Representatives from the American Federation of State, County and Municipal Employees wrote a letter to University President Eric Kaler protesting the cost shift in June, saying that the ACA is “being used to justify this move.”
“We believe that this proposal is not a result of the Affordable Care Act,” the letter said. “It is another example of the University administration’s decision-making that deliberately shifts costs to the most economically vulnerable workers.”
The union also started a petition requesting that the University stop the current plan and look for other savings in its budget to lessen the cost for employees.
About 1,100 University employees have signed the petition so far, said AFSCME Local 3937 President Barb Bezat. These employees hold all kinds of jobs — not just those covered by the unions, she said.
Planning for the coming year
The University’s Benefits Advisory Committee met Thursday to discuss the proposed changes. The BAC is a group of faculty and staff members and retirees who advise University administrators on employee benefits.
At the meeting, AFSCME representatives raised the issue of employees not being able to cover their healthcare costs.
Some union members have admitted refusing to seek medical care because the costs were too high, said AFSCME Local 3800 President Cherrene Horazuk.
“Let’s have the employer pay more,” said Horazuk, whose union represents University clerical workers.
Faculty representatives at the BAC meeting commented on the possible repercussions of the changes for University faculty members.
Some instructors at the University are paid very little, said Duluth campus professor Jennifer Schultz, so the University should decrease out-of-pocket healthcare charges or raise salaries to help meet costs.
Though a number of faculty members take issue with the changes now, they won’t really take effect until fall, when faculty and staff members can update or change their healthcare plan, said Twin Cities campus professor Richard McGehee.
For the time being, the BAC has put the subject on hold. Its next meeting will be held in September.