Give Now

IU Encourages Enrollment In High Deductible Health Plans

IU says high-deductible plans save the university money, but union officials argue they are also harder on support staff who make lower salaries.

Indiana University say it hopes more employees will sign up for a high-deductible health care plan in the coming year.

Associate Vice President for Human Resources Daniel Rives says the university wants to expand enrollment in its already-popular Health Savings Account, or HSA plan. In that high-deductible option, both an employee and the university put money in a special savings account.

The employee can then use the money for health care costs, or choose to use it as income. Rives says university workers benefit from that flexibility and the university saves money because those employees spend more prudently.

“It is marvelous how much attention individuals will give when they start looking at the cost of health care,” he says. “When you have to pay for it, your money or debit card money, it has a very interesting effect on consumers.”

Ed Vasquez, the president of the union that represents Bloomington support staff, says the HSA plan is out of reach for many other university workers. This is because the university modeled contributions for that option on an employee who earns $51,000 a year.

Vasquez says that is not close to what support staff earns in salary. He says he wishes the university would consider the wages of support workers when modeling insurance options like the HSA.

“Health care goes up, our pay doesn’t go up as much, and it makes us nervous, and sometimes we feel neglected,” Vasquez says.

Rives says the university plans to cover six percent of the six-point-seven percent increase in next year’s HSA deductible. IU’s lower-deductible plans are set to cost about 14 percent more.

  • Fred LM

    Not only support staff, but most professional staff (for
    example, most working in student services) are underpaid, don’t receive actual cost
    of living pay increases, and can afford neither higher deductibles nor higher
    co-pays / premiums. How I would LOVE to earn the $51K upon which they apparently
    based their estimates – that would make my 45 – 50 hour salaried weeks seem
    more equitable; and what a boon to my standard of living it would be to be fairly
    compensated!

  • Pingback: IU Encourages Enrollment in High-Deductible Health Care Plans | Sehvilla Mann

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From

Search News

Stay Connected

RSS e-mail itunes Facebook Twitter Flickr YouTube

Follow us on Twitter

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Recent Health Stories

Recent Videos

Find Us on Facebook