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Larry MacIntyre
University Communications

Last modified: Friday, April 15, 2011

IU announces new medical contribution policy

April 15, 2011

BLOOMINGTON, Ind. -- Indiana University officials announced today (April 15) at a meeting of IU Trustees that they are adopting a new medical plan contribution policy that provides a fixed percentage of employee contributions, effective January 2012.

Neil Theobald

IU Vice President and Chief Financial Officer Neil Theobald

Print-Quality Photo

Beginning January 1, 2012, the university will fund a fixed percentage of medical plan premiums for all employees in a given salary range, regardless of the medical plan the employee has chosen or the employee's family status.

The new medical contribution policy will allocate two-thirds of increased employee medical plan costs evenly across all enrolled IU employees, according to IU Vice President and Chief Financial Officer Neil Theobald. It will allocate the additional one-third of the increased costs to individuals with annual base salaries above $50,000, while providing a greater IU contribution for employees with an annual base salary of less than $30,000.

Under the new policy, IU will pay approximately 92 percent of medical plan premiums for employees with base salaries of less than $30,000.

The percentage of medical plan premium costs that IU will pay is lower for higher-salaried employees with IU paying approximately 82 percent of the medical plan premium for employees with salaries of $200,000 or more.

When changes in deductibles and co-pays are added, the share of medical plan costs paid by IU will fall from 80 percent in 2011 to about approximately 75 percent in 2012.

"This lower percentage will allow IU to continue to offer robust medical-plan coverage to its employees and their families in the face of much higher expenses that are resulting from increased healthcare usage, particularly of higher-cost treatments, and increased prices for healthcare services," said Theobald.

To learn more about IU health benefits, go to