For several years, University employees and their dependents paid, on average, less than 10 percent of their health insurance premiums. But rising costs are forcing the administration to think of new ways to provide health care.

The University released recommendations to faculty and staff yesterday calling for a new premium-sharing model policy, which would cover about 85 percent of all premiums for University employees and their dependents.

In December, a final plan is expected to go before the executive officers and the University Board of Regents. It would be put into place starting in 2005.

"We have made no final decisions," Provost Paul Courant said at a news conference Friday.

Robert Kelch, executive vice president for medical affairs, attributed a 14-percent increase in the University's insurance costs each year since 1999 to longer lifespans and new medicine and technology.

"That double-digit increase is more likely to continue than not for the rest of this decade," Kelch said, noting that expenditures went from $85 million to $170 million since 1995. "We're not looking to reduce quality."

Courant originally discussed these pending problems at the regents' April meeting. As a temporary solution, he announced that all employees would pay at least 5 percent of their premiums in 2004. In addition, Courant formed a committee headed by Public Health Prof. Kyle Grazier to examine new alternatives.

Grazier explained in detail the new policy, emphasizing that it is becoming more difficult for the University to pay its insurance bill. Although numbers were not final, she said the University would cover about 90 percent of employees' premiums and 80 percent of their dependents' premiums - resulting in roughly 85 percent of costs covered.

Grazier's committee worked for six months, looking at many possible solutions and alternatives, including plans used at other universities and corporations.

"The University is committed first to its employees and retirees, but less to its dependents," Grazier said. "By cutting it to 85 percent, the University is being more fiscally responsible and it shares the pain. ... It's a good thing for everyone to be insured."

There are currently three tiers of University employees - single, two-person and families of three people or more. Premiums vary for each tier. The committee recommended adding a fourth tier of single parents with children. Since children are less expensive to insure, this could significantly reduce costs for single parents.

"We do think that this structure will be more robust," Grazier said.

The committee estimated that employees would pay anywhere from an extra $15 to $430 in premiums under the plan, depending on which of the seven proposed insurance plans they chose, and what tier they were in.

The University plans on holding several informational sessions with faculty over the next several weeks to explain the recommendations and receive feedback.

Calls made to faculty members yesterday were not returned. Pathology Prof. Daniel Remick said he did not yet know enough information to comment.