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143



RATE INCREASE GROUP INSURANCE PLAN



(Board of Trustees Meeting, June 17-18, 1979)



Dr. Richards explained that due to the increase in hospital

costs, 1t was necessary to revise the contributions made by the

College and by the employees of the College. The aim of the new

proposal was to maintain the College's contributions to the

Group Insurance plan at the original 75 percent but to raise the

ceiling from $12 to $20. This change, he added, would enable the

College's employees to maintain their insurance. Both Attorney

Bornn and Attorney Williams questioned the retention of the

College's contribution at 75 percent, and Dr. Richards pointed

out the need to maintain employee morale by retaining benefits



already awarded. Mr. Kirwan explained that the 75 percent, and



Dr. Richards pointed out the need to maintain employee morale by

retaining benefits already awarded. Mr. Kirwan explained that

the 75 percent College contribution referred only to employee

coverage and that dependent coverage was the sole responsibility

of the employee, adding that the total increased cost to the

College would be about $1,000 a month.



Dr. Richards requested the Board of Trustees' approval of

his authorization to increase the College's Contribution to the

Group Insurance plan to $17.78 a month with a limit of $20: for

each employee. A motion to that effect was proposed by Dr. Evans,

seconded, and approved, with Attorney Williams opposing it and



Attorney Bornn abstaining.



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What we would need at this time, therefore, is the removal of this $12

limitation on the College's contribution to avoid shifting the entire burden

_ of the rate increase on to the employee.



We are recommending that you authorize, subject to Board approval,



the proposed increase in the College contribution. This would still mean

that the College would contribute no more than 75% of the employee

premium. The other 25% would continue to be paid by the employee.



The action would remove only the $12 upper limit.



We are pressed to receive action by Mowaws so that the proper deductions

can be made in the monthly payroll which goes to the computer on the 15th.

If you approve, the following rates would apply:



College Employee —



$17.78 | $5.92

If you do not approve at this time the rates would be:



College ~ _ Employee



a a $11.70



MCK:bh__



APPROVED with a limit of $20.00 total College

contribution; subject to Board approval.



Arthur A. Richards

Acting President



May 14, 1979