1 / 16

Benefit Plan Design Summary FY 2011

Benefit Plan Design Summary FY 2011. Strategic Resource Planning Council Presentation April 21, 2010. Outline. Federal Health Care Reform Impacts Benefit Coverages No changes With changes (+ or -) Medical Insurance Rates Requirement from Components HR Recommendations Next Steps.

gaurav
Download Presentation

Benefit Plan Design Summary FY 2011

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Benefit Plan Design SummaryFY 2011 Strategic Resource Planning Council Presentation April 21, 2010

  2. Outline • Federal Health Care Reform Impacts • Benefit Coverages • No changes • With changes (+ or -) • Medical Insurance Rates • Requirement from Components • HR Recommendations • Next Steps B. Centeno - HR

  3. IMPACT OF FEDERAL HEALTH CARE REFORM • UT Select Effective Date: Sept 1, 2011 • Coverage for children (regardless of marital/student status) to age 26 (previously 25) Effective Date: Sept 1, 2014 • Reduction of state mandated waiting period (new hires) from maximum 120 days to 90 days B. Centeno - HR

  4. IMPACT OF FEDERAL HEALTH CARE REFORM (cont’d) • Payflex Effective Date: January 1, 2011 • Elimination of OTC (e.g. bandaids, allergy meds, etc) medicines/supplies (unless prescribed by an MD) B. Centeno - HR

  5. IMPACT OF FEDERAL HEALTH CARE REFORM (cont’d) • Medical Flexible Spending Account Effective Date: September 1, 2012 • Reduction in maximum annual contribution • UT self imposed annual limit is $5000 • New federal maximum is $2500 (16% of System population elects >$2500) B. Centeno - HR

  6. NO CHANGES(to plan design or premiums) • Assurant HMO Dental • Superior Vision • Short Term & Long Term Disability • Name Branding Change to Dearborn National Life • CNA Long Term Care B. Centeno - HR

  7. Living Well Program • WebMD enhancing portal • http://www.livingwell.utsystem.edu/ • Wellness Incentive Model (WI) New: 8 hours of leave for health risk assessment & physical exam (if department can arrange) • UT System is developing model policy B. Centeno - HR

  8. Enhancements • Life and AD&D • Contract awarded to Dearborn National • 11.2% decreasein current rates; guaranteed for 6 years • Plan re-design consideration(cost an additional 0.2% funding): • Benefit added: • Retiree spouse life - $3,000 ($1.83/mos) - EOI may be required • Basic Life Insurance for employees • $10,000 to $20,000 • Basic Life Insurance for retired employee • $3,000 to $6,000 B. Centeno - HR

  9. UT Flex Flexible Spending Account • Administrative Fee - $1.00/month (per plan) • $12 deducted from the first month’s contribution • In addition to the $9 debit card fee (if opted) • UTSA PARTICIPANT LEVEL IN PAYFLEX ACCOUNTS B. Centeno - HR

  10. UT Select Dental • No changes to plan design • Premium increase 3% or less (awaiting March experience) B. Centeno - HR

  11. Medical Insurance Rates • Trend – costs have increased 9% per year • Current premium rate deficient by 5% therefore, a subsidy from contingency fund required for FY 10. • For 2011, rate increase of 14% to balance the budget is required • 10% rate increase in rates will require a 4.0% benefit reduction • 12% rate increase in rates will require a 2.0% benefit reduction PLUS • Basic life increase requires additional 0.2% B. Centeno - HR

  12. REQUEST • OEB is requesting a recommendation from the campuses by early May, 2010 • HR has reviewed all scenarios presented 12% premium increase with changes that result in a 2.2% reduction in plan cost Our recommendations were based on: 1. Previous year’s increases2. Percent of population affected by each change 3. Information from BC/BS (according to their book of business, our deductibles and out of pocket maximums are low.) 4. Encourage employees to use free standing medical clinics (e.g. Texas Med Clinic - $35 co-pay includes lab/X-ray) B. Centeno - HR

  13. Medical Cost Increase Projection (12%) • NOTE: • 62% of the enrollment in the UT SELECT plan is Employee Only Coverage • It is not permissible under state law to charge full-time employees for employee-only coverage. B. Centeno - HR

  14. BENEFIT CHANGE COMPARISONS B. Centeno - HR

  15. Benefit Reduction Recommendations by HR B. Centeno - HR

  16. Next Steps • Deliver information to other groups/meetings B. Centeno - HR

More Related