Committee's report to President McRobbie (PDF)
On February 11, 2009, Indiana University President Michael McRobbie announced the formation of a blue ribbon committee to identify ways to contain health care plan costs while continuing to deliver high-quality health care to employees and their families on all IU campuses.
The committee is chaired by Dr. Thomas Inui, M.D., president and chief executive officer of the Regenstrief Institute, which is closely affiliated with the IU School of Medicine. Inui also serves as associate dean for health care research and the Sam Regenstrief Professor of Health Services Research in the IU School of Medicine.
During FY 08/09, Indiana University will spend approximately $146 million on healthcare benefits for its 17,300 full-time employees and their families and over $7 million on healthcare benefits for over 4,400 graduate assistants. These benefits are essential for the recruitment and retention of highly qualified faculty, staff, and graduate assistants, and hence must be at least consistent with those provided by IU’s peers. However, these costs could increase to over $200 million or nearly 10% of IU’s budget, in just four years if nothing is done to contain them.
These increases, which are more than double or triple the general rate of inflation, would take resources away from IU’s central missions of excellences in education and research in a already extremely difficult fiscal climate. Hence, containing these costs is essential if IU is going to continue to advance as a great university.
Given this, President McRobbie has established a Blue Ribbon Expert Committee on Healthcare Cost Containment to be chaired by Dr. Thomas Inui, M.D., president and CEO of the Regenstrief Institute. The charge to this Committee is to identify ways to cut health care costs at IU in both the immediate future and over the longer term, while continuing to deliver high-quality health care to employees and their families on all IU campuses.
The Committee should explore a wide range of ways to reduce health care costs and make appropriate recommendations. These recommendations should ensure that the health of IU employees and their families is maintained or even improved across the continuum of care. The exploration of creative and novel ways of reducing health care costs is to be encouraged.
The Committee should give particular attention to ways of reducing health care costs that leverage services already provided by, or which could be provided by, the IU School of Medicine and through the University’s unique relationship with other entities, such as IU Health and all of its associated hospitals and other facilities: The Indiana Clinic, Regenstrief Institute, and Indiana Health Information Exchange.
The Committee should meet regularly and provide a report to the President by August 31, 2009. However, given that the IU budget for FY 2009-10 will be being finalized in May, 2009, the Committee should make any interim recommendations to the President that it believes should be considered for inclusion in the 2009-10 budget by May 15, 2009.
Input into the Committee’s deliberations should be solicited from all relevant parts of the IU community. The committee should publicize its efforts through a Website and use this to collect input.
Support for the Committee will be provided through the Office of the Associate Vice President for Human Resources.