October 25, 2012
TO:
All Employees with Benefits
FR:
Dr. Laurie Van Dusen
Director of Employee Benefits
RE:
Your 2013 Benefits – Annual Enrollment October 26 – November 15, 2012
It’s time to enroll in the benefits that you would like to have in 2013. This year’s enrollment applies to everyone, even if
you do not participate in the College’s health plans, as we are changing our life insurance carrier. Therefore, please take a
moment to read this letter and complete your online 2013 enrollment. You are also invited to attend one of the
informational sessions to obtain more details.
Life Insurance and Long Term Disability
As of January 1, 2013, Dearborn National will become our life insurance and long term disability provider. It is critical that
you update your beneficiary information through our online enrollment system – BenefitSolver. If you do not have
someone special that you would like to designate as your beneficiary, you are welcome to name the College’s Foundation
or possibly a charitable organization of your choice.
Your current College-paid basic life insurance coverage will remain the same (i.e., two times your annual base salary). If
you purchased additional coverage for yourself, spouse or dependents, it will also remain the same. However, if you
would like to increase your personal coverage, you may do so during this enrollment cycle. You may purchase an
additional 1x your base salary up to a maximum of 3x your base salary without having to go through the Evidence of
Insurability process.
Flexible Spending Account – Healthcare and Dependent Care
Flexible Spending Accounts (FSA) provide a great way to save money on healthcare necessities, such as your deductibles
and co-pays, by not having to pay income taxes on contributed dollars. The IRS has decreased the Healthcare FSA amount
for 2013 to a maximum pledge of $2,500. No changes were made to the Dependent/Day Care FSA contribution levels.
IMPORTANT: Annual enrollments are required for each of these accounts. They do not roll forward.
Medical Coverage
The members of the Healthcare Task Force dedicated a great deal of their time in extensive research over the past sixmonths to ensure that we have a high quality competitively priced health plan. As you can imagine, this was no easy task.
With high dollar claims and rising health care costs, the task force had to make some very difficult decisions in preparing
their recommendations to address our waning revenue stream in light of our increasing expenses.
While only 120 of our employees have family coverage under our medical plan, 17 of whom are from our career
constituency, the task force opted to recommend only the premium increase in lieu of the proposed deductible and
physician co-pay increases as well, to lessen the financial burden.
On October 18th, the College’s Board of Trustees approved the premium change recommendations as set forth by our
health plan’s actuary, consultants, and Healthcare Task Force. The College has accepted the lion’s share of the increase at
$84 per employee per month, while over 60% of our employees will see less than a $5 per net pay increase. (View your
2013 Plan year medical premium).
Dental and Vision Coverage
As you are likely aware, our dental and vision plans are completely separate from our medical plan and from one another.
Each Plan is 100% supported by employee/member premiums and co-pays. The Healthcare Task Force reviewed other
plan options, including the Consortium, and voted to continue with our current plan design that allows members to
choose their own providers rather than moving to a limited local provider network such as Delta or Coast Dental for your
dental coverage.
To maintain this flexibility and stay fiscally stable, there will be a slight increase in the dental premiums. However, the
vision premiums will remain the same. (View your 2013 dental and vision premiums).
Pharmacy
Due to the rising cost of prescription drugs, the Plan can no longer provide the full third month free on 90-day supplies.
However, the Plan will still cover half of the third month’s co-pay – allowing you to receive a three month supply for 2½
co-pays. (View your 2013 Rx co-pays).
The Healthcare Task Force also voted to add a new benefit this year to help employees/members who have a chronic
illness, such as: diabetes, high cholesterol, mental health, asthma or pain; or who are taking four or more maintenance
medications per month. Managing one’s prescriptions and their associated cost along with the relative formulary changes
and safety factors can be a daunting task.
Therefore, in addition to MedTrak, our current pharmacy provider, Tria Health will become our new medication
advocate. Additional information will be sent to the homes of those who are eligible to receive Tria Health’s special
services. If you or a covered family member receives this special enrollment packet, please take a moment to read the
enclosed information as it includes an offer for participating members to receive their maintenance medication for sixmonths at no personal cost.
In conclusion, as our premiums are deducted one month prior to coverage, the new premiums will begin with your
December 14th pay check. Your new benefits will go into effect January 1, 2013. Your FSA pay check contributions will
begin with your January 15th pay check. If you complete your enrollment through BenefitSolver during this annual
enrollment period, your current insurance ID cards and your current FSA Master card will be valid in 2013.
We look forward to seeing you at one of the informational sessions.