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Budget Claims Behind Health Plan Changes Don’t Add Up

Harvard Overstated Growth in Benefit Costs in Introducing New Health Plans

“Would I rather the number not be a number that’s gotten so much attention, sure I would. But would it have changed what the committee did given the target we have given? No, I don’t think it would have,” he said, emphasizing that even with the disputed numbers, it is clear that health care costs are rising.

Brigitte Madrian, another member of the benefits committee and a professor at the Kennedy School of Government, also said that the specific numbers probably does not change the equation, adding she was not involved in gathering the statistics.

“I do think [the numbers] are a little bit of a red herring,” Madrian said. “Whether it’s 8 percent of total expenditure or 12 percent of total expenditure, it’s missing the point. We want to make sure that the spending is buying us the most in terms of healthcare for the faculty and staff at the University.”

The changes in non-union health plans center on the introduction of a $250 deductible at the point of care, except for routine office visits and tests. Before the changes, there was no deductible. Additionally, under the new plans, after thresholds of $250 per individual and up to $750 for a family, enrollees will shoulder 10 percent of costs. Before the changes, plans did not ask for an enrollee contribution. Co-payments for emergency room visits also rise under the new plan.

At the same time, Harvard also announced the creation of a new low-premium, high-deductible plan run through Health Savings Accounts. As required by the Affordable Care Act, the new plans fully cover preventative care.

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—Staff writer Matthew Q. Clarida can be reached at matthew.clarida@thecrimson.com. Follow him on Twitter @MattClarida.

—Staff writer Mariel A. Klein can be reached at mariel.klein@thecrimson.com. Follow her on Twitter @mariel_klein.

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