October 20, 2008

Employees will see few changes in 2009 health plans

Faculty and staff can expect minimal changes to Purdue's health plans.

Employees will see an increase in Purdue 500 out-of-network co-insurance payments and a change to the medical plan premium tiers in 2009. In addition, enrollment materials for dental and prepaid legal coverage will be supplied through the Web rather than through paper packets.

The Board of Trustees approved the health plans Sept. 26 at its meeting at Indiana University-Purdue University Fort Wayne.

Employees' coinsurance for all out-of-network care under the Purdue 500 plan will increase to 50 percent for 2009. This year, some out-of-network services had a 30 percent employee coinsurance.

The UnitedHealthcare network now used by the Purdue 500 requires 50 percent coinsurance on all out-of-network claims, says John Beelke, director of Human Resource Services. The higher employee coinsurance encourages use of providers who have agreed to be part of the UHC network.

The break point for the medical plan premium tiers will increase from $38,000 to $40,000.

"The tier level was indexed because it hadn't been adjusted for a number of years," Beelke said. "Premium tiers continue to be a topic of discussion with our advisory groups."

Employees who are earning at an annual rate of between $38,000 and $39,999 in January 2009 will move from the higher tier to the lower one, resulting in a lower premium.

Employees need to remember that if their Purdue pay increases to $40,000 or more, they will move to the higher medical premium tier immediately when their pay increase goes into effect.

For example, a July raise taking the employee's pay to $40,000 or more will bring a July medical premium increase as well.

To take a greener approach to enrollment for dental and prepaid legal coverage, Staff Benefits will direct people to www.purdue.edu/benefits for information and forms during enrollment Oct. 24-Nov. 7. In past years, paper enrollment kits were provided for these coverages.

"For the most part, people who are interested in these benefits are already participating," Beelke says. "Participants who want to continue their same coverage do not need to complete any paperwork, so a relatively small number of people actually need the enrollment materials."

Employees who do not have  Web access and want enrollment materials for either of these benefits can contact Staff Benefits customer service at 49-42222.

A comparison of the three health plans — Incentive PPO, Purdue 500 and UnitedHealthcare — is available here.

Open enrollment will be Friday through Nov. 7.