Purdue University is making major changes to its employee health care plans in order to rein in rising health care costs caused by the Affordable Care Act (aka Obamacare). Among the options being considered is a high-deductible health plans that qualify for a tax-free health savings account. Ultimately, the university is calling for an additional $2.8 million in fees and claims due to Obamacare. Purdue’s Director of Benefits said the university is “making some pretty radical changes because of health care reform”.
Obamacare is hurting higher education closer to home, as well. According to MPR, the University of Minnesota is looking to increase deductibles and copays and otherwise scale back employee health coverage to avoid costly Obamacare tax penalties. MPR reports that the U of M “is considering changes for 2014 that would increase copays for primary and specialty care, require employees to pay deductibles, and establish a cheaper, but more limited plan for Twin Cities area employees, among other things. The changes would apply to employees but not students. University human resources vice president Kathy Brown said the cut backs are necessary to avoid paying an estimated $48 million ‘Cadillac tax,’ an excise tax included in the Affordable Care Act that is meant to discourage employers from offering overly generous health insurance.”
We have sure come a long way from, “if you like your health care plan, you can keep it”.