The University of Minnesota recently decided to cut back its employees’ health insurance benefits in an effort to reduce upcoming costs under the Affordable Care Act.
According to Minnesota Daily, U of M’s office of human resources proposed changes to the university’s current health plan, called UPlan, to prevent paying a $48 million tax. The newspaper reported that when the ACA takes effect in 2014, the university will see staff members’ out-of-pocket expenses increase, which can be difficult for lower-paid employees. During the university’s 2014 year financial planning, the benefits advisory committee decided to raise the prospect of reducing employee health coverage.
In a letter to University President Eric Kaler, the American Federation of State, County and Municipal Employees stated the proposed employee benefit cut is the result of other fiscal demands instead of the ACA, according to the newspaper.
“We believe that this proposal is not a result of the Affordable Care Act,” the letter said. “It is another example of the University administration’s decision-making that deliberately shifts costs to the most economically vulnerable workers.”
MPR news reported the increase in copays for primary and specialty care for workers is one of the only ways to reduce the university’s costs.