Nonunion employees to see premium caps on insurance

The contributions of exempt staff is capped at 10 percent of premium costs.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- Nonunion, exempt professional/administrative employees at Youngstown State University will begin paying a portion of their health care insurance premiums beginning in January.
They will be required to pay 1.5 percent of their annual base pay as a contribution toward family plan health insurance premiums (0.75 percent for single plan coverage).
That's the same percentage that YSU faculty and classified union employees will begin paying in August 2006 under terms of new contracts negotiated this fall, but there's one big difference.
The exempt professional/administrative staff will have their contributions capped at 10 percent of the cost of the annual health insurance premium.
Figures
Health insurance premiums for YSU employees amount to about $12,000 a year for family plan coverage. Exempt professional/administrative staff will contribute 1.5 percent of their annual base pay up to the 10 percent cap, which is about $1,200 a year. There are about 150 exempt professional/administrative staff employees at YSU.
The faculty and classified union employees have no cap.
Effective August 2006, faculty and classified staff at YSU will also pay 1.5 percent of their base pay as a contribution toward family plan health insurance premiums (0.75 percent for single plan coverage).
Under the new contracts for both the classified and faculty unions, there is no cap on the amount of that contribution. If 1.5 percent is greater than $1,200, they'll have to pay it.
During negotiations this summer, the faculty union was offered the 10 percent cap but rejected it, the university said in a prepared statement. The classified union, in its negotiations this summer, agreed to accept health insurance benefits identical to the faculty union, the statement said.
Effective January 2004, senior-level executive staff, such as vice presidents and executive directors, were required to begin contributing 10 percent toward their annual health insurance premiums. This was the first time any YSU employee was required to contribute to health insurance.
Rejected proposal
Dr. Stanley D. Guzell, chief negotiator for the faculty union, confirmed that the faculty turned down the 10 percent cap offer. The university claimed that it needed to save money, so the faculty union agreed, suggesting that everyone contribute equally to the cost of health care, Guzell said.
The faculty chose to set a good example and hoped the YSU Board of Trustees would set the same rate of contribution for everyone with no caps. However, it turns out faculty members will be paying a higher percentage of their wages toward health care than management personnel, he said.
Christine Domhoff, president of the classified employees union, said a cap wasn't an option offered in her union's contract.
The university has estimated that the 380-member faculty union will pay out $827,000 in premium contributions over the next three years while the 400-member classified employee union will pay out $395,000 and the exempt professional/administrative employees pay out about $415,000, for a total contribution (or savings from the university's standpoint) of more than $1.6 million.
gwin@vindy.com