Princeton Weekly Bulletin October 19, 1998
Benefits update
• Now is the time to change health
care plans
• PPO plan offers online
directory
• New in '99
• Vision care plan covers
exams
• Range of rates for coming
year
• Do you want a health benefit or
dependent care expense account?
Prepared by the Office of Human resources
Who to contact for more information:
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Main campus |
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Main campus |
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Plasma |
Now is the time to change health care plans
The annual Open Enrollment for health care plans, health benefit expense account (HBEA) plan, dependent care expense account (DCEA) plan and the vision care plan offered through the University runs through November 13.
During this period, eligible employees have the opportunity to
• add dependents to health care or vision care plan
coverage;
• change coverage from one health care plan to
another;
• enroll in a health care plan or the vision care plan
for the first time;
• waive health care or vision care plan coverage;
or
• enroll in a health benefit expense account (HBEA) or
dependent care expense account (DCEA) for 1999.
No action is necessary for participants in the Point of Service Plan through Oxford Health Plans or for participants in an HMO Plan who do not wish to make any changes.
New PPO plan
Since the Princeton Health Care Plan will be discontinued on January 1, 1999, please note the following.
Employees who have the following type of coverage in the Standard Plan will be automatically enrolled in the new Preferred Provider Organization (PPO) plan on January 1, 1999:
• Employee and Children
• Employee and Spouse
• Employee and Family
• All employees enrolled in the Premium Plan will be
automatically enrolled in the new PPO plan on January 1, 1999.
• All employees who have Employee Only coverage in the
Standard Plan will automatically be enrolled in the new
Catastrophic health care plan, unless they elect other
coverage. (There is no charge for Catastrophic plan coverage.)
These employees who would like coverage in the new PPO plan, Point
of Service (POS) Plan through Oxford Health Plans or one of the
HMO plans, must enroll by November 13. There will now be a charge
for Employee Only coverage in all health care plans except the
Catastrophic health care plan.
All current participants in the health benefit expense account (HBEA) and dependent care expense account (DCEA) who wish to continue their participation in these plans must reenroll for 1999. Employees interested in enrolling in these plans for the first time in 1999 must also enroll during the Open Enrollment period.
Anyone interested in making a change should refer to the materials that were mailed to employees' homes. They should also contact their Office of Human Resources for POS and HMO plan enrollment forms and current literature on those plans.
All changes in health and vision care coverage and enrollments in the HBEA and DCEA for the coming year must be made during the annual Open Enrollment period. Changes in coverage made during the Open Enrollment period will be effective January 1, 1999.
Retirees
Coverage for retirees will continue only in the Princeton Health Care Plan (Standard Plan and Premium Plan). Retirees may only change from the Premium Plan to the Standard Plan.
PPO plan offers online directory
The plan administrator of the new Preferred Provider Organization (PPO) plan is United HealthCare. United HealthCare's provider directory is available online. With this directory
• You can create a personalized directory that meets
your search criteria.
• A map and directions to each provider's office is
available.
• Data is updated weekly.
• The online provider directory is available at your
convenience, 24 hours a day, 365 days a year.
The online directory also includes information on network hospitals, primary care physicians and specialists, office language capabilities, board certification, and hospital affiliation.
There is a link to the United HealthCare Provider Directory from the Office of Human Resources PPO home page (www.provider.uhc.com/princeton/).
New in '99
Princeton Health Care Plan
This plan will be discontinued for active employees on January 1, 1999.
Preferred Provider Organization
The Preferred Provider Organization (PPO) plan is available for active employees, employees on Long Term Disability leave and COBRA participants. It is not available to retirees.
• There will be a monthly premium for Employee Only
coverage.
• All claims must be submitted within 12 months of the
date of service.
• Eligible claims incurred in the last calendar quarter
and credited towards the deductible may not be applied to the
deductible for the following calendar year.
• The annual deductible (both in-network and
out-of-network) will no longer be salary-based.
Catastrophic Plan
This plan is available for active employees, employees on Long Term Disability leave and COBRA participants. It is not available to retirees.
• This plan provides Employee Only coverage. No
other types of coverage are available.
• There is no charge for this plan for active
employees. There is a charge for COBRA participants.
Vision care plan covers exams
Eligible faculty and staff may enroll in the Vision Care Plan through Vision Service Plan (VSP) for 1999.
The plan provides coverage for a comprehensive vision exam and corrective lenses and frames every 12 months. Plan members pay a monthly payroll contribution on a pretax basis and small copayments
Monthly pretax premiums:
Employee Only: $10.59
Employee and Children: $17.34
Employee and Spouse: $17.03
Employee and Family: $27.94
Additional information, including an online provider directory, can be found on the Human Resources Web site (www.princeton.edu/hr/ben/vision.htm).
Range of rates for coming year
The employee contribution rates for the new Preferred Provider Organization (PPO) plan fall between the rates for the Princeton Health Care Plan, Standard and Premium Plan options.
Thus, employees who move from the Premium Plan to the PPO Plan will see decreases in their monthly contribution rates, while employees who move from the Standard Plan will see increases in their monthly contribu tion rates of less than $20 per month. These increases are approximately the same for all employees currently in the Standard Plan, regardless of type of coverage. In addition, there will be a monthly contribution for Employee Only coverage in this plan.
The costs associated with the Point of Service Plan through Oxford Health Plans have increased significantly over the last year. While the University has absorbed some of these increases, particularly for employees with dependent coverage, it was necessary to pass on some of the increased costs.
Costs for the HMO plans have increased modestly, andthe University has been able to absorb these increases and not increase the employee contribution rates for the HMO plans in 1999.
The Catastrophic health care plan, which has been created for employees who want to opt out of the other health care plan choices but not to waive coverage, has no dependent coverage and is available to employees only, at no charge.
Retirees' rates have increased for 1999. Retirees will receive a direct mailing from Human Resources showing the rates for 1999.
Do you want a health benefit or dependent care expense
account?
During the annual Open Enrollment period, eligible employees may enroll in an expense account for 1999. Current plan members who wish to continue their participation in a Health Benefit Expense Account (HBEA) or a Dependent Care Expense Account (DCEA) must enroll again for 1999 by completing a new enrollment form and may increase or decrease the amount they wish to place in their account.
This plan lets you direct part of your salary, on a pretax basis, into an account that can be used throughout the year to reimburse yourself for certain health care or dependent care expenses. This essentially means that you get a tax deduction for these expenses before you ever file your tax return.
The contributions made to the accounts are not subject to federal income tax or Social Security tax, but the Internal Revenue code imposes restrictions. For an expense to be eligible for reimbursement, the service must be received in 1999. The amount of pretax deferrals to the account may not be changed or stopped during the calendar year, except when certain qualified life events occur, such as marriage, divorce and birth of a child or death. Any funds not claimed for reimbursement by March 31, 2000 are forfeited.
Health care expenses
You may set aside up to $5,000 on a pretax basis to reimburse qualified expenses for you and eligible dependents, such as deductibles, copayments, and dental and vision expenses not covered under a health care plan. Expenses can be reimbursed through the HBEA or claimed as a tax deduction -- but you cannot do both for the same expense. Participants in the new Preferred Provider Organization (PPO) plan should note that their annual deductible may be less than in previous years and should take this into consideration when determining the amount to contribute to a HBEA.
Dependent care expenses
You may set aside up to $5,000 to pay for any childcare or elder care expenses, regardless of the number of dependents, so that you and your spouse may work full time or attend school full time. Childcare expenses for dependents only up to their thirteenth birthday may be submitted for reimbursement, and expenses for overnight camp are not eligible expenses. The Internal Revenue Code requires that the participant report the tax identification number and address of the caregiver. Dependent care costs reimbursed through the DCEA reduce, dollar for dollar, the amount available through the federal tax credit for dependents.
Additional information on both accounts, including a worksheet to help you estimate the amount you should contribute, can be found on the Open Enrollment Web site (www.princeton.edu/hr/ben/oe.htm). This plan is not available for retirees.