Health System
Academic & Research Employee Council
Thursday, November 15, 2001

Attendance: June Wade, Pat Harlow, Lynn McCutcheon, John Aufill, Jim Stork, Melinda Swisher, Della Marsh, Nancy Kriigel, Ginny Dean, Mike Wilson, Annette Norton, Sharon Heyka, Kathleen Ashe, Anda Webb, Bill Vining, Mary Leigh Thacker and Terry Moore.

Terry Moore chaired the meeting in Monte Parsons' absence. The first speaker was Bill Vining, Director of Employee Relations. He noted that the governor has granted additional holiday time that UVA will be adding as compensatory time. Employees will receive an additional 20 hours of compensatory leave to use within one year. Information is posted on the HR website under Management Communications (

Everyone had a good time on the UVA trip to Germany. There will be an optional 3-day stay in Madrid for the Barcelona trip next spring. Two questions were raised:

  • When will there be training on the Reward & Recognition phase of the new pay plan? Per Bill & Anda Webb, training will have to be handled at the school level because the plans vary. Dave Ripley & Jay Scott are probably working on developing training.
  • There is a rumor that hospital clinic employees may be forced to eventually switch from agency 207 (UVA) to agency (209), and that if they don't convert now, they will have to be paid for their leave and start all over in agency 209. Is that true? Per Bill, need to contact Trish Van Hook in Medical Center Human Resources. If she doesn't know the answer, let Bill know, and he will try to find out. A suggestion was made to invite Trish to a meeting to address the differences in benefits between 207 & 209.

Anda Webb, from the Provost's Office, provided an update on the budget. There are no official budget reductions from the state as of yet. The state's revenues are down. They had projected approximately 7% growth, and instead, are currently down over 2%. The effect of the 9/11 terror attacks is not yet known, as new figures are not yet available.

UVA has decided to proceed cautiously on expenditures in case of budget cuts. The Deans of Education, Architecture and Arts & Science have decided to voluntarily suspend faculty searches. They want to curb expenses now, so they will be prepared to address any cuts in the spring. Higher Ed didn't receive a cut this past year, and are operating under the budget that was approved 2 years ago.

It is still unclear what will happen with salary increases or the car tax. At this point, it appears raises are unlikely, and the state may not be able to afford the last phase of the plan to eliminate the car tax. The Governor will issue his budget around 12/19/01. The General Assembly will not convene until 1/9/02. The Provost has asked the Deans to begin planning, but there has not been a request to submit formal plans yet. There is a meeting scheduled tomorrow with the Deans, Provost & Leonard Sandridge.

Terry Moore stated that there is still a need for a 3rd co-chair. Please consider volunteering. She thanked Kathleen Foster for taking the minutes at the last meeting. We welcomed new member Melinda Swisher from Physical Medicine and her alternate Kristine Sheldon. Annette Norton attended a presentation that Nancy Rivers gave to the leadership of all the councils, but the information was the same provided at our October council meeting.

There will be a legislative forum in Newcomb Hall Ballroom at 12 noon in the Newcomb Hall Ballroom. It provides a chance to ask questions of our local legislators.

Please let Terry or Monte know if you have any suggestions for future speakers. They are trying to schedule someone to come talk about the administrative intern program & flexible spending.

The minutes for the October meeting were amended and approved with two changes. The Spain trip is on, but the travel committee is monitoring the situation in the Middle East to decide whether to pick another location besides Greece for the next trip. They are considering Paris or Copenhagen. There was also a typo that needed to be corrected. They will be posted correctly on our website.

Monte asked Terry to check whether the meeting in December should be postponed if representatives were going to be out for the holidays. It was decided that most representatives could attend in December.

The next day trip will be Saturday, 12/8/01, to Williamsburg. Employees would leave Fontaine at 8 AM, and return to Charlottesville around 11 PM. You could shop at the pottery or one or two other outlet areas, or spend the day in Colonial Williamsburg. The entire group will go to Colonial Williamsburg for the Illumination of the Capital & the caroling at the Capital. Registration ends 11/22/01. Contact your employee representative to obtain a brochure, or you can call Mary-Leigh Thacker @ 3-0226.

There is an art exhibit in the Health Sciences Library. Sharon Heyka, in Neuroscience, said one of their researchers was doing some exciting research with genes. A suggestion was made to have a speaker who could update employees on what is going on at UVA in terms of research. UVA does some excellent research, but employees don't always hear about it.

Other suggestions for future speakers:

  • Ed Smith - a presentation on the 100th anniversary of the hospital
  • UVA Architect - present UVA's 50-year plan, or invite someone else to talk about new arena, library, arts center, etc.

Ann Goodson, UVA Healthcare Ombudsman presented a summary of benefit changes effective 01/01/02. Open enrollment is October 29 - November 30, 2001. All applications must be received in Benefits by 5:00 p.m. on Friday, November 30th.

  • Coverage Changes
    o Temporomandibular Disorders: Several diagnostic, non-surgical and surgical services will be covered.
  • Co-payment Change
    o Speech Therapy: $10 co-payment will be charged for Option 1 services
  • Premium Changes
    o Why the Increase?
    8.5% projected increase in medical costs in 2002.
    32% increase in 1999-2000 in Pharmaceuticals
    20% projected increase in drug costs in 2002.
  • Minimal Monthly Premium Increases - the Key Advantage amounts are for comparison to the plan offered by the state to other state employees.
  Employee1/2002 Employee1/2001 Change to Employee Key Advantage Expanded
Employee 15 14 1 30
Employee + One 103 99 4 140
Family 196 187 9


Double State 105 100 5 150

Prescription Plan Changes

  • Changes in Three-Tier Prescription Drug Plan
    - Move 13 drugs from Tier 2 to Tier 3
    - Move 5 drugs from Tier 3 to Tier 2
    - Add 4 drugs that are new to the market to Tier 2
    - Add 4 drugs that are new to the market to Tier 3
  • Increase in Drug Co-Pays:
    30 - DAY RETAIL SUPPLY - they have discontinued the 90-day retail supply program.
      Current 01/01/02
    Tier 1 $8 $8
    Tier 2 $12 $16
    Tier 3 $25 $32

    MAIL ORDER (UP TO A 90 DAY SUPPLY) - this is the lowest cost option for maintenance drugs. You can request additional information from Benefits, or call Pharmacare at 1-800-346-9113.
      Current 01/01/02
    Tier 1 $10 $18
    Tier 2 $18 $36
    Tier 3 $35 $72


  • Summary of Drug Plan Changes
    - Allows YOU to control costs
    - Encourages you to have discussions with your provider about your drug therapy

  • Eligibility Enforcement
  • Eligibility Ends:
    - The last day of the calendar year a dependent turns 23.
    - The last day of the month in which a dependent marries or secures a full-time job, no matter what age they are.
    - The last day of the month during which a divorce is final.
  • If ineligible dependents or spouses are not dropped within 31 days of their ineligibility:
    - The employee may not reduce his premium tier until OPEN ENROLLMENT. He must submit an application during the Open Enrollment period.
    - The employee is responsible for reimbursement of claims paid by the health plan after the date of ineligibility.
    - The employee and their eligible dependents may be suspended from the health plan for a period up to 3 years.

  • Flexible Spending Accounts (FSA)
    o Changing FSA Program Administrator to Flex America for 2002 plan year
    o Health Care FSA: 12 months at UVA - $3,000.00 max/year
    o Dependent Care FSA: $5,000.00 max/year
    o Claims are to be paid: Thursday
    o Administrative fee: $2.00/month
    o Direct deposit of expense reimbursement is available

  • Vision Benefits
    o FAVS (First American Vision Services)
    o Discount Vision Program
    o Receive discounts at participating providers on: Eye Exams, Frames, Lenses, Contact Lenses and Lasik procedures

  • Mental Health Benefits
    o Must be referred by PCP or the University's Faculty and Employee Assistance Program to receive Option 1
    o $10 co-pay is waived if assessment is performed by FEAP and results in a referral from FEAP.

  • Dental Benefits
    o Preventive services-100% coverage up to allowable amount
    o Primary Services- 80% coverage of allowable amount after deductible-$50
    o Complex services-50% coverage of allowable amount after deductible-$50
    o $1000 per year maximum benefit
    o Orthodontia Services- 50% coverage after deductible with lifetime maximum of $1000 per covered life.

  • 457 Plan
    o UVA employees are now able to participate in the State's 457 plan for tax-deferred savings. They can save up to $11,000 each in a 457 and a 403(b) plan ($22,000 total). If you are over 50, you can save $12,000 per year in each plan. The advantage to the 457 plan is that there is not a 10% penalty to withdraw funds before 59 ½.
    o 15 core investment options
    o For more information:
    · Website -
    · Tom Ferguson @ 1-804-643-1882, ext. 102. You can also e-mail him from the website
    o Employees can apply at anytime. Not limited to open enrollment.

    o CIGNA LIFE INSURANCE: You may increase or decrease coverage by 1 level, plus purchase family coverage. Limited to 5 times your salary.
    o AIG ACCIDENTAL DEATH & DISMEMBERMENT: You may increase or decrease coverage, plus purchase family coverage. Limited to a maximum of $500,000.
    o LIBERTY MUTUAL DISABILITY INSURANCE: You may change your coverage from Basic benefit of 60% to Optional benefit 66 2/3% of your salary or vice versa.
  • Sources of Information
    o Web site:
    o E-mail:
    o Fax: 924-4486
    o Phone: 924-4392

    Ann reminded everyone that UVA's Health Plan still requires a referral from your PCP to a specialist for payment under option 1. A form for the PCP to complete is on Human Resources' website. Employees should take it to their specialist and then retain the completed form as proof that a referral was obtained. As another reminder, the mental health referral process has not changed at all, and the PCP or FEAP must still contact Coventry, who purchased QualChoice, for a referral. Coventry will operate under the name Southern Health in this area. New cards for Southern Health & FAVS will be sent out in the next month or so.

    Ann had received some questions from the council:
  • There will be no change in physical therapy visits - there is still a maximum of 40.
  • Long-term care is available from Aetna
  • No riders are available with the UVA Health Plan
  • If you do not want to use your SSN for the Health Plan, you can complete a form to ask for a random number during open enrollment.
  • A spouse can stay on the UVA Health Plan, should the employee (or retiree) die.
  • Employees planning to retire should contact Benefits at least 3 months prior to their planned retirement date.

    There being no further business, the meeting was adjourned. The next meeting will be December 13, 2001 at 10:00 a.m. in McKim.