When the 2006 Annual Enrollment period opens July 1, be prepared for premiums in most health plans to go up.
Scott & White participants should be pleased, with employee-only premiums increasing by only a little over $4 per month and premiums for all other coverage levels decreasing significantly. Graduate students will pay a little less each month for employee-only coverage. Rates for all other plans and coverage levels will increase, most by double digits.
“While health care costs have slowed a little from the past two years, they are still increasing at around 10 percent,” said Steve Hassel, associate vice chancellor for Human Resources, talking about the A&M Care plans. “We were faced with either reducing benefits or increasing premiums, and we opted to not change copayments and deductibles. We regret the burden this puts on our employees and retirees, but we have to make sure employees, the plans and the A&M System are protected against catastrophic losses, and we have to ensure the health plan is financially sound.”
Hassel pointed out that, while premium increases will be significant, they are in line with what employees at The University of Texas System and Employee Retirement System are paying for coverage. In addition, he noted that most employees’ premiums actually went down significantly last September.
Hassel said that many System employees and retirees have options available to help keep their out-of-pocket costs down.
“People living in Bryan/College Station have access to Scott & White and FirstCare, two HMOs that have lower rates than the A&M Care 350 plan,” Hassel said. “And the A&M Care 1250 and 65 PLUS plans, with their $0 employee-only premiums, are available to everyone.”
In more positive news, premiums will decrease for all other insurance plans except Life, which will increase slightly, and Long-Term Care, which will stay the same.
Premiums for all A&M System insurance plans are posted on the System Human Resources web site and will be posted within the HRConnect Annual Enrollment system beginning July 5, the first day the system will be available. Employees and retirees will have until July 31 to make benefit elections, and elections will take effect Sept. 1.
Most employees will not receive printed Annual Enrollment booklets and Personal Benefit Summaries in the mail this year, but instead will view their information and make their benefit elections through the online system. Printed materials will be sent only to:
However, the online Annual Enrollment system is open to these employees and retirees as well.
The System Human Resources web site will include additional information, including links to presentations from each insurance plan carrier and examples of how benefits are calculated under different insurance plans.
If you have questions about Annual Enrollment, contact your Human
Resources office. 