For the second straight year, employees of the A&M system will see their health insurance premiums go down.
Chancellor John Sharp says there will be a 16 percent decrease in the average premium starting September 1.
Sharp says the reduction was the result of providers submiting new bids, additional state funding, and a $5 million dollar transfer from the system’s health care reserves.
Sharp also announced the creation of a wellness plan, something that he plans to participate because in part it will save him $30 dollars a month on his premium a year from now.
Last year there was a 20 percent drop for system employees on the A&M health care plan.
WTAW’s Bill Oliver visits with John Sharp.
News release from the A&M System:
Texas A&M University System Chancellor John Sharp approved the reinvestment of $5 million in health care reserves to offset premium increases as a result of increased medical trends and higher than expected health care costs for fiscal year 2014. The average A&M System employee will see a decrease of 16 percent in their monthly healthcare premiums.
“We have been working hard to reduce the effects of rising health care costs on our employees,” said Sharp. “Through aggressive negotiations with our benefit providers last year and the diligent work by our representatives in Austin, our employees will be paying over $10 million less in premium contributions compared to fiscal year 2013 in spite of rising costs.”
The 2014 plan will also include the System Wellness Initiative, a two-year program aimed at increasing wellness among employees. Under this two-part program, the chancellor has provided funding for campuses and agencies to provide webinars, classes, bio-metric screenings, health fairs and other wellness-related activities. Additionally, all insured employees and spouses will be offered a $30 monthly premium discount in fiscal year 2015 for completing a free wellness exam between January 1, 2013 and May 31, 2014.
