Several changes are in effect this year, and this is a summary of the changes that will be made in the University of Pennsylvania's Medical and Life Insurance Benefits Programs effective July 1, 1997. Overall, the Programs will offer flexibility and choice, take advantage of current tax laws, and compare favorably with programs offered by other employers.
Following are changes in medical coverage and life insurance that take effect July 1.
Medical options will change, as follows:
Life Insurance Flexcredits--which are based on your age and benefits base salary --will no longer be part of the Program. However, the increase in benefits base salary described next, will make up for this change. (This will not apply to employees in collective bargaining units.)
Benefits Base Salary--if you are actively at work on July 1, 1997 and eligible for PennChoice, you will receive a one-time increase in benefits base salary. The amount of the increase will equal the net dollar value of the difference between the Flexcredits you would have otherwise received and the cost of the basic insurance described below.
Life Insurance--will be redesigned. All employees will receive Basic Life Insurance coverage of up to one times benefits base salary up to $300,000. In addition, employees who want or need more financial protection will be able to purchase Optional Life Insurance coverage. What is more, maximum insurance will be increased from $300,000 to $750,000.
Dependent Life Insurance--if you purchase life insurance for your spouse or eligible children, your premiums will now be paid on an after-tax basis; that way, you will not incur any imputed income.
Now, all employees will share the cost of the option they elect. The University will continue to pay the majority of the cost.
The contribution rates for each of the available options are shown here.
Keep in mind that your contributions will be made with before-tax dollars,which provide valuable tax-savings and lower your net cost.
Monthly Contribution For Single Family Option Coverage Coverage BC/BS Plan 100 $ 66 $ 172 PENNCare PPO $ 40 $ 104 UPHS/Keystone Point of Service $ 20 $ 52 Keystone HMO $ 10 $ 26 US Healthcare HMO $ 10 $ 26 HIP Health Plan of NJ $ 10 $ 26
Options Discontinued: The BC/BS Comprehensive option and the QualMed HMO option will no longer be available. However, similar benefits will be available under other options. If you are currently enrolled in either of these options, you must choose a new medical plan during the open enrollment period.
Options Continued: BC/BS Plan 100 and PENNCare PPO will continue unchanged, except for employee contributions.
Options Expanded: The Keystone and US Healthcare HMOs will be improved through two new features:
New Options: You will also have the added opportunity to elect the new UPHS/Keystone Point of Service (POS) option. This option offers flexibility and freedom of choice. You can choose between Referred Care and Self-Referred Care whenever you need medical treatment. Referred Care is care provided by your primary care physician.
For Referred Care, benefit levels are high--most eligible expenses are covered at 100% after you make a small copayment for doctors' office visits. If your Keystone primary care physician is also part of the UPHS
Network, your copayment will be even lower. If you choose Self-Referred Care, benefits are generally 80% after a $200 individual, annual deductible.
If you purchase contributory life insurance coverage, your contributions will be made with after-tax dollars. That way, you will not incur any imputed income which is subject to income taxes.
-- Human Resources/Benefits
Page 4, under "PENNCare Preferred Providers" column
- Skilled Nursing Facility: covered at 100% (replacing "Non-Preferred benefits apply")
- Durable Medical Equipment: covered at 100% (replacing "None")
Page 5, under the "PENNCare Non-Preferred Providers" column
- Hospitalization: covered at 80% after deductible (replacing 100%)
Page 5, under the "UPHS/Keystone Point of Service (POS)" column
- Preventive Care, routine eye exam: covered at 100% after $10 copay (replacing "Provider not currently available")
- Skilled Nursing Facility: covered at 100% (replacing "Provider not currently available")
Page 6, column 2, paragraph 2, last "bulleted" item: should read "selected physicians from Presbyterian Hospital and the Chestnut Hill Health System."
For any questions about the above material, please contact Human Resources Benefits, 898-7282.
Volume 43 Number 30
April 15, 1997
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