State Announces Changes in Health Insurance Rates

Aug. 14, 2000




Open enrollment 2000 will be held Monday, Aug. 14, through Friday, Sept. 1. Changes requested during this period will go into effect Sunday, Oct. 1.

During this time, University employees have an opportunity to change their state-sponsored benefits including health-related insurance carriers (medical, dental, life and short-term disability insurance) and their level of coverage (individual or family).

The Arizona Department of Administration (ADOA) has recently released information to the University and other state agencies about changes in premium rates for health (medical and dental) insurance programs that will go into effect on Oct. 1.

The first open enrollment benefits fair at the UA will be held on Tuesday, Aug. 15, in the Memorial Student Union, Senior Ballroom from 2-6 p.m.

The open enrollment period will require only those who wish to elect changes to take any action. If no changes are desired, no action is required. All benefits-eligible employees will receive a personal benefits information packet through campus mail in August, before the official start of the open enrollment period. Additional information will be made available online and via announcements in Lo Que Pasa.

Medical Premiums Rate Changes
On the average, medical premium rates for the coming plan year will increase 8.5 percent. "Nationally, we're seeing rate increases averaging nearly 10 percent -- and that's for plans that provide substantially less benefits than the ADOA plans." said Marcia Chatalas, director of Human Resources' Compensation & Benefits unit. "According to ADOA, premium increases are the result or many factors, such as higher costs and usage of new prescription drugs, increased levels of participant plan usage, medical fee increases, and the development of new medical technology," she said.

Chatalas said the state will fund 55 percent of the increase in the medical insurance premium and 100 percent of the dental insurance premium increase. "While some employees will contribute more to their medical premium, the employee contribution for dental insurance will not increase," she said. Chatalas said that, on average, the state contributes 73 percent of overall medical premiums, and 56 percent of overall dental premiums.

The state medical insurance program will continue to offer four vendors and seven plans with no reductions in benefit coverage or increases in co-payment schedules. In addition, the state will continue to offer one single-coverage option at an employee cost of $5 per month, and one family-coverage option at an employee cost of $75 per month.

Life and Disability Insurance Program Premium Rates
Premium rates for life insurance offered by Standard , Aetna, and Reliastar, and short-term disability insurance offered by Standard will remain unchanged in the new benefits plan year. Premium rates for short-term disability insurance offered by UnumProvident will increase approximately 8 percent.

A chart on HR's web site details the employee's contribution per pay period based on the plan and coverage level selected.

Open Enrollment
Information about open enrollment will be available in the coming weeks by way of mailings to employees, online information and announcements in Lo Que Pasa. "University employees will receive information packets in August about their current benefit program elections," said JoAnn Salazar, benefits administrator.

"We encourage employees to review the status of their benefit elections carefully and to make any changes they find necessary during this open enrollment period." Salazar said that outside of the annual open enrollment period, the opportunity to change one's benefit elections is very limited. "The benefit plan regulations allow a change during the plan year only under very few, specific circumstances (such as marriage, birth of a child, or divorce) and then, only if the change is requested within a 30 day period from the date of the event," Salazar added.

More Information
A complete schedule of benefits fairs can be found on the Human Resources web site at http://www.hr.arizona.edu.

Human Resources has unveiled an entirely new Benefits web site, which includes plan/progam information and comparisons, premium rates, all benefits forms, listings of deadlines, and recent satisfaction survey results. The site was designed to make all pertinent benefits information easily accessible and to provide added convenience to employees. Salazar indicated that electronic transmission of forms is not yet possible, however, employees may either print blank forms from the site, or fill out forms online, then print, sign, and send them to Human Resources.

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