SEMO regents approve health insurance plan

The Southeast Missouri State University Board of Regents approved a contract with Blue Cross Blue Shield of Missouri on Friday for the 2005 calendar year that will provide university employees and retirees with a new health insurance plan.

While it's a one-year contract, it could be renewed for another two years, school officials said.

Dr. Pauline Fox, interim director of human resources and interim assistant to the president for equity issues, said the new plan will replace a health insurance plan that was provided by a consortium of schools that included Southeast. The consortium is folding, necessitating the insurance change, Fox said.

The new plan includes good coverage of drug purchases and lower premium costs, school officials said.

University president Dr. Ken Dobbins said the plan will cost the school about $4.8 million annually in premiums for employee coverage. The university, however, will get some money back when health claims are low.

The university doesn't pay the premiums of retirees, but Dobbins said Southeast plans to subsidize those rates based on years of service. Retirees will receive a larger subsidy on their monthly premium the more years they worked for the school, he said.