Trends and Strategies in Higher Education Human Resources: Insights and Future Directions

1. Human Resources Andy Brantley College and University Professional Assn for Human Resources (CUPA-HR) Sam Connally University of Louisville Lori Southwood Northern Kentucky University Kimberly Wilson University of Kentucky

2. Opening CommentsJohn Hayek

3. Discussion Outline • You can get there from here! Andy Brantley • Current and future trends… • Healthcare—current and future trends Kimberly Wilson • Retirement—current and future trends Sam Connally • Onboarding—current and future trends Lori Southwood • Other strategies Andy and panelists • Beyond higher education discussion Andy and panelists • Summary Andy Brantley • Closing Comments John Hayek

4. You can get there from here! • CUPA-HR Economic Issues Survey findings • Employer/Employee “contract” changing • Key steps in moving forward

5. Human Resources focus area…Healthcare

6. University of Kentucky Health Benefits UK Health Plan Initiatives Kimberly P. Wilson CHRO September 13, 2010 An Equal Opportunity University

7. Discussion Topics • Pharmacy Carveout • Plan Design Change • Co-pay Counseling • Lifestyle Case Management: Health & Wellness • Healthtrac: Health Assessment Program • Disease Management An Equal Opportunity University

8. Pharmacy Carveout • RFP for separate Rx vendor for FY 2003-04 • Allowed the university to realize “full rebates” on brand medication • Greater access to reporting tools and claims • Direct access to Pharmacy Benefit Manager (e.g. Express Scripts) Account & Clinical Teams • Better AWP discounts An Equal Opportunity University

9. Plan Design Change • Change from “flat co-pays” (e.g. $8 generic, $20 brand) to coinsurance model (e.g. 20% generic, 30% brand) • Employees/Retirees became engaged in the purchase of health care “Consumerism” • Both employees and employer benefit financially as employees make cost effective choices An Equal Opportunity University

10. Co-pay Counseling • Two pharmacists hired from UK College of Pharmacy to work full-time in the Employee Benefits Office to provide “co-pay counseling” services • Assist with understanding medications • Look for drug to drug interactions • Recommend to physician lower cost brand or generic alternative medications An Equal Opportunity University

11. University of Kentucky Generic Fill Rates July 2010 76% July 2007:UK lowers Generic % Co-insurance 68% July 2006: UK moves Medicare retirees to co-insurance 60% July 2005: UK moves to the UK Prime formulary and lowered generic co-pay 55% January 2005 54% Every 1% increase in Generic Utilization saves the plan 1.01%* October 2004: UK implements Step Therapy Enhanced Trend Package 53% July 2004 51% 49% January 2004 October 2003 48% July 2003: UK implements carved-out prescription benefit and % CO-INSURANCE with Express Scripts using the National Preferred Formulary 47% Pre-July 2003 (prescription benefit with FLAT COPAYS) 42% *ESI Annual Review & Strategic Planning Session

12. Lifestyle Case Management BeH.I.P. – Behavioral Health Improvement Programs • Based upon the idea that asymptomatic individuals are developing diseases and intervention is necessary prior to disease progression • Telephonic counseling following specific and measurable criteria for individual risk reduction • Weight Loss for Life - Exercise for Health • Reduce the Pressure - Start to Stop Smoking • Preventing Diabetes - Banishing the Blues • Achieving Balance An Equal Opportunity University

13. Healthtrac Rewards • Goals: • Educate individuals about their health • Inform individuals about UK resources available to manage their health • Program (earn up to $180 per year)$25 twice per year • Take a health assessment twice per fiscal year (July through September and January through March) $5 a month • Check your personal health page and earn at least 500 Wellness Credits per month using the Healthy Activity Tracker $10 per quarter • Complete the assigned Health Center Quiz each quarter $30 once per year • Enroll in BeH.I.P. telephonic coaching program or an online Healthy Living program An Equal Opportunity University

14. Disease Management • Programs (offered through Humana) • Coronary Artery Disease • Health Failure • Chronic Kidney Disease • End-Stage Renal Disease • Rare Diseases • Diabetes Education (PharmacistCare) An Equal Opportunity University

15. Human Resources focus area…Retirement

16. Human Resources focus area…Employment/Recruitment/Onboarding

17. Human Resources focus area…Other strategies

18. Beyond Higher Education • What suggestions do you have for helping us manage the higher education workforce during challenging economic times?

19. Summary

20. Closing CommentsJohn Hayek