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IU to Raise Health Care Costs for Higher-Paid Employees

Indiana University budget authors say the school will attempt to contain rising health care costs by charging higher-paid employees more for their coverage. Union leaders say they’d still like more changes made.

The plan, which goes into effect  January 1st, would charge IU employees making $30,000 or less with just eight percent of the cost of their insurance premium.  Meanwhile, employees making more than $200,000 a year would pay a quarter of the cost of their insurance.  Union officials said that while they’re happy change is being made, they’d rather see a flat percentage charged to all employees.

“Whatever that number is, if it’s 8 percent hypothetically speaking, then the lowest income earners should pay 8 percent of their salary into the premiums and the highest-income earners should also pay 8 percent out of their incomes so it’s a relative match.”

Communications Workers Local 4730 President Bryce Smedley said his union wants to ensure that as many support staff as possible, many of whom he says make less than $30,000 a year, are included in the lowest payment bracket.  IU spokesman Larry MacIntyre could not say whether the University plans to make any changes in response to the union’s requests, but said more discussion might be possible.

“I think that Bruce and Dan Reeves, our human resources chief should continue to talk about that. I think that that issue can still be put on the table and discussed,” said MacIntyre.

MacIntyre said a third of the increased cost will be felt solely by employees making more than $50,000 a year, with the other two-thirds of the increase paid by all IU employees.

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