Enroll or Make Benefits Changes Beginning Oct. 24
Employees are encouraged to assess health care needs as part of open enrollment
As annual open enrollment for benefits approaches, Duke’s health insurance plans have never been more popular – a record 65,000 faculty, staff and family members are covered.
That popularity is driven in part by lower costs compared to options available in the market, said Kyle Cavanaugh, vice president for Administration.
“Healthcare costs nationally have continued to outpace inflation, and the healthcare exchanges have continued to see substantial volatility with some providers dropping out and others projecting significant increases in premiums for the coming year,” Cavanaugh said.
For 2017, Duke will keep premium increases for its most popular plans well below the national average with Duke still paying 80 percent of the cost for individual coverage. Faculty and staff will be able to enroll and make changes to their plans during Open Enrollment, which runs Oct. 24 to Nov. 4.
Premiums for Duke’s most popular plan, Duke Select, will increase $3 per month for individuals and $16 per month for family coverage. Premium increases for other plans vary (see chart on page 6). There will be no increases to copays for primary care, specialty care or urgent care visits. Copays for inpatient, outpatient and prescription drugs will increase slightly to cover increasing costs in those areas.
While use of generic medications has helped manage cost increases, use of specialty medications has risen dramatically. About 37 percent of Duke’s prescription drug spending last year was for specialty medications, some of which cost up to $3,000 a month to treat diseases like hepatitis.
“Our situation is the same with what we see on a national level, as employees age and deal with more chronic diseases,” Cavanaugh said. “Specialty medication is a prime driver of healthcare costs going up for all employers.”
Cavanaugh said that one of the most important aspects of 2017’s plans is minimal disruption at a time when other employers are adding additional surcharges, eliminating spousal coverage and introducing high deductible plans.
Healthcare decisions made by Duke employees, such as visiting a primary care doctor instead of going to urgent care, picking a generic medicine over a brand name and participating in a fitness or wellness initiative, help reduce health plan costs.
“Managing healthcare plans continues to be one of the most significant organizational challenges throughout the country,” Cavanaugh said. “We’re focused on strategies to keep our offerings at a cost below what we find elsewhere.”
Get More Out of Duke's Benefits - Coming Up Next:
October 17: Saving and Changing Lives, Duke employees share how Duke health plans improved their lives
October 24: Your Open Enrollment Questions Answered
October 31: Get the Most Out of Pharmacy Benefits
November 4: How to Achieve Your Wellness Goals