The latest work-life information at IU
           
   


No. 29
October 2003


University Human Resource Services
www.indiana.edu/~uhrs

Inside this Issue:

New Tax Deferred Savings Plan

Tobacco Use and Health

Retirees Under 65 -- More Affordable Health Care

Tax Saver Benefit (TSB Plan)

Dependent Eligibility

Pharmaceutical Manufacturers and the Cost of Medication

Increasing Drug Costs -- What Can Employees Do?

2004 Medical Premium Rates

Investment Fund Performance

Clery Act Notice

Preferred Providers

 

View a PDF version of this bulletin

 

The Informed Employee is published 2-3 times a year by University Human Resource Services for approximately 16,000 full-time appointed staff and academic employees across the eight Indiana University campuses.

University
Human Resource
Services
Indiana University
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Annual Open Enrollment

Once a year, full-time employees have the opportunity to make changes in medical, dental, and Personal Accident Insurance coverages and to enroll in the University’s Tax Saver Benefit (TSB) Plan.

If an employee does not take any enrollment actions during Open Enrollment, participation in medical, dental, and Personal Accident Insurance will remain the same at the 2004 contribution rates. If an employee does not enroll in the Tax Saver Benefit Plan, he/she will not be a participant in 2004. Participants in Partners HMO who do not select another medical plan during Open Enrollment will not have IU-sponsored medical coverage effective January 1, 2004.

Participation in the university’s TSB plan requires enrollment each year to take advantage of pre-tax reimbursement of health and dependent care expenses. Employees do not need to be enrolled in an IU-sponsored health plan to take advantage of the TSB plan.

The Open Enrollment period takes place during November of each year, with enrollment changes becoming effective on January 1. This is an opportunity to:

  • Select a different medical plan or drop a plan.
  • Add or drop dependents.
  • Add or drop dental coverage (if eligible).
  • Add, drop, or change Personal Accident Insurance.
  • Allocate contributions for pre-tax reimbursement of 2004 health care and/or dependent care expenses (TSB).

An Open Enrollment packet with additional information and enrollment forms will be sent to full-time appointed employees in mid-October through campus mail. The deadline for submitting Open Enrollment forms is November 14, 2003.

2004 Health Care Plans
2.26 Percent Increase in Medical Premiums

For 2004, there will be a 2.26 percent increase in the weighted average adjustment in medical premiums for the university’s four medical plan options. There will also be a 7.5 percent increase in dental premiums.

The above are adjustments in total premiums, and employee contributions will increase or decrease based on the difference between total premium and the university’s contribution amount. For 2004, the university will contribute the following for medical and dental plan coverage:

2004 UNIVERSITY CONTRIBUTIONS
  MEDICAL DENTAL
Employee Only $3,567.75 $209.65
Employee/Child(ren) $6,208.08 $298.89
Employee/Spouse $7,542.38 $403.88
Family $8,108.27 $568.72

Note: The university will contribute a greater amount for nonexempt Staff with a base salary of less than $23,465.

University contributions for dental coverage will increase by 7.5 percent and university contributions for medical coverage will increase by 2.26 percent. See below for a list of 2004 medical plan premiums and employee contributions.

Highlights of Modifications:

IU Dental Plan
  • No plan changes.
IU PPO-Plus
  • One comprehensive eye exam per year, including refraction, will be covered.
  • The prescription brand copay schedule has increased to $15 (for brands under $60), $30 (for brands $60 and over). The $5 generic copay will remain the same.
  • Prescription coverage for non-sedating antihistamines has been moved to Tier 4, 100 percent copay with plan discounts.
  • A new service will be added to inform members of optional lower cost substitutes for high-cost brand drugs.
IU PPO $900 Deductible
  • Preventive and wellness services, such as annual physicals, periodic screenings, and child immunizations, will be covered with just a copay, even if the deductible hasn’t yet been met.
  • One comprehensive eye exam per year, including refraction, will be covered.
  • While the individual deductible and copay maximums remain the same, the family deductible and copay maximums will change. This only affects employees with a total of three or more individuals covered under their plan. The annual family
    deductible maximum will increase to $2,700 and the family out-of-pocket copay maximum will increase to $3,000. For details and examples of how the $900 deductible and maximums work, go to www. indiana.edu/~uhrs.
  • The prescription brand copay schedule has increased to $15 (for brands under $60), $30 (for brands $60 and over). The $5 generic copay will remain the same.
  • Prescription coverage for nonsedating antihistamines has been moved to Tier 4, 100 percent copay with plan discounts.
  • A new service will be added to inform members of optional lower cost substitutes for high-cost brand drugs.
M-Plan HMO
  • A $200 copay has been added for inpatient hospitalizations.
  • A $50 copay has been added for outpatient surgery.
  • Biotech drugs will have a 20 percent copay up to a $2,400 per member maximum payment per year.
Blue Preferred Primary POS
  • Mental health and chemical dependency will be covered the same as any other medical condition.
  • The Anthem Blue Preferred network is gaining provider acceptance, making this plan a more viable option statewide, particularly in South Bend.
Partners HMO
Due to a decision on the part of Partners, this plan will be discontinued effective December 31, 2003. Current participants may enroll in other plan during Open Enrollment; if no action is taken, the participant will have no IU-sponsored medical coverage effective January 1, 2004.

Personal Accident Insurance (PAI) Plan
No plan changes.

Next Article: New Tax Deferred Savings Plan


UNIVERSITY HUMAN RESOURCE SERVICES

Last updated: 2 October 2003
URL: http://www.indiana.edu/~uhrs/
Comments concerning the web site: uhrs@indiana.edu
Copyright 2002, The Trustees of Indiana University