UA Facing $85M Healthcare Cost Hike

The University of Alaska is grappling with a substantial surge in healthcare costs, with projections indicating a potential rise of up to ten percent for the current fiscal year. This trend aligns with a national pattern where employers are experiencing similar increases. The universitys chief of human resources, Nikole Conley, revealed that these hikes are not anticipated to abate soon, with overall cost projections ranging from eight to ten percent. This could escalate healthcare expenses for the universitys three thousand four hundred forty-two employees to eighty-five point five million dollars. Medical costs are up eight percent, pharmacy costs by thirteen percent, and dental costs by four percent. Alaska already has some of the highest healthcare costs in the nation, with the average cost of a health insurance marketplace plan rising by more than sixteen percent each year since two thousand twenty-three. The university covers eighty-two percent of these costs, with employees contributing the remaining eighteen percent in premiums. Pharmacy spending, which has more than doubled over the last five years, is a significant contributor to these rising costs. The university is now concentrating on promoting wellness programs and preventative healthcare to mitigate these expenses and potentially secure a healthcare rebate for employees who engage in prevention programs. DNN | The Daily News Now! The world’s first global local news network. Every city. Every story. AI powered. Hosted on Acast. See acast.com/privacy for more information.