The Health Care Taskforce at Morehead State has recommended several spending changes to the University’s Board of Regents.
In a report during today's special meeting, Task Force Chair and Human Resources Director Howard Nally offered several ideas. Nally says the changes would save MSU around $1.6 million dollars, which is the same amount that MSU spent on offsetting health care costs to employees during the 2017-18 year.
The task force recommended the board suspend Health Reimbursement Accounts, reduce Health Savings Accounts by 50%, and suspend the Wellness Incentive Program. Nally also suggested an increase of the tobacco usage surcharge to $200 dollars, and an increase the spousal surcharge to $150. If the recommendations are passed, employee contribution to health insurance will increase by 26% and the cost share will increase to 30% for employees.
The moves would shift more than $400,000 in health costs from the university to its employees. Faculty Board Representative Dr. Jonathan Pidluzny said that will mean a loss of $2,000 in benefits for each MSU employee.
No action was taken, but President Jay Morgan says the recommendations must be followed or the university will have to consider massive outsourcing. He called the changes a “Hard pill to swallow.”
Nally said he is optimistic that the suspensions will be reinstated when the university is in a better place financially.