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Vanderbilt's health care plan to undergo changes in 2011

Posted 9/2/2010

by Joan Brasher in the Vanderbilt View

Vanderbilt is seeing some success in its drive to protect employees from the runaway costs of health care coverage.

New policies to be implemented after Open Enrollment Oct. 1-15 will protect the most vulnerable Vanderbilt employees – those making less than $50,000 per year – from any immediate premium increases. Those who make more will see their premiums rise on a graduated scale, with those with the highest salaries paying the most for coverage.

Vanderbilt, which is self-insured, spends close to $190 million each year providing health care to employees and their families. National health reform legislation allowing employees to add some of their children as old as 26 to their insurance plans will also be costly.

“We pay our own costs,” said Jerry Fife, vice chancellor for administration. “BlueCross and Aetna merely process the claims. We pay those costs for our employees’ health care. Employees pay about 19 percent of the cost of their health care through premiums, co-pays and deductibles. Vanderbilt covers the rest.”

Vanderbilt University Medical Center has made great strides in holding down costs through initiatives such as promoting generic pharmaceuticals and an aggressive drive to improve quality of patient care, said Jeff Balser, vice chancellor for health affairs and dean of the School of Medicine.

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