Whereas, health care is of significant concern to all;
Whereas, the health care benefits in the University’s health-care plan are one of the prime drawing cards to become and remain employed at The University of Alabama;
Whereas, The University of Alabama is a self-insurer;
Whereas, health-care costs have been rising steadily in recent years;
Whereas, the increasing cost of health care has been and remains a significant and increasing burden to many University of Alabama faculty and staff members;
Whereas, the University several years ago commendably adopted a tiered premium structure, whereby those earning less than $26,000 annually pay a lesser premium than those earning more than that figure;
Whereas, further tiering of the premium structure might increase tax benefit for members of the University’s health-care plan;
Whereas, copays and deductibles are designed to make plan members more efficient in their health care budgeting decisions, work well for such purposes, and should never be used for revenue purposes;
Therefore, be it resolved by the Faculty Senate of The University of Alabama that the University adopt further tiers in its premium payment structure so that those who earn more pay a larger share of health care costs, and that those who earn less pay a smaller share, thereby acting in part to smooth out the transition when an employee gets a raise and moves to a higher health-care income bracket; and
Be it further resolved that the University adopt a plan of covering increased health care costs through rises in premiums rather than through changes in copays and deductibles.
Adopted by the Faculty Senate
November 16, 2004