Why is Emory University implementing a Part-Time Rate?
• The part-time rate is an alignment based on costs and real expense to the plan. The University currently pays proportionally more for a part-time employee’s benefits than for a full-time employee. For example, consider an employee who works full time and earns $30,000 annually, and another employee who works half time and earns $15,000 annually. In 2008, on average, the plan paid $7,989 per employee for health-care coverage. Therefore, the cost of health coverage for the full-time employee was 26.6% of pay, while the cost of coverage for the half-time employee was 53.3% of pay. Proportional to salary, the University pays more for the part-time employee’s benefits. Up until this time, the additional cost of covering part-time employees has been subsidized by increasing all employees’ premiums or by increasing the fringe benefit costs paid by schools and divisions. • Additionally, the use of part-time rates is becoming more common among employers, and Emory Healthcare has used part-tim
