Come Jan. 1, 2007, administrative professionals, as well
as all other non-bargained for employees at Eastern Michigan
University, will be required to pay a portion of their
healthcare insurance premiums if they wish to maintain
the same level of coverage they currently enjoy.
However, the non-bargained for employees (which includes
administrative professionals, athletic coaches and confidential
clericals) have the option of enrolling in a base Blue
Cross Blue Shield Community Blue PPO plan and continue
to have their healthcare premiums paid by the University.
The tradeoff: slightly less benefits.
Premium Rates
Non-bargained for employees at Eastern Michigan
University recently learned they will have to pay
a portion of their healthcare insurance premiums
beginning Jan. 1, 2007. That portion is not yet
known, but the employer monthly rates (on a pre-tax
basis), based on using FY2006 numbers as an example,
would be:
Single $30.34
Two persons $68.29
Family $81.85
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"We simply delayed this (charging portion of premiums)
as long as humanly possible," EMU President John Fallon
told a gathering of non-bargained for employees at a June
8 forum in McKenny Union's Ballroom. "This is where the
University is today. We have to deal with it. The University
must begin to expand cost-sharing in its benefit packages."
Fallon said EMU is the last public entity in Washtenaw
County that fully covers the cost of healthcare premiums
for its employees.
"We tried everything to prevent this day from coming," said
Jeanette Hassan, director, benefits.
Community Blue PPO Option 1, as proposed, will not require
any cost share on the part of the employee. However, employees
will have a reduced level of benefits, Hassan said.
Under Option 1, office visits would cost $15, up from
the current $10. In addition, many in-network procedures
— such as outpatient surgery, lab test and X-rays — would
be covered at only 90 percent after payment of a deductible
is met. Deductibles in-network would be $250 for single
people and $500 for families, Hassan said. Medical procedures
would only be covered at 70 percent if out-of-network providers
were used. Deductibles for using out-of-network providers
would be $500 for a single person and $1,000 for a family.
Retail prescription drugs would cost $10 for a generic
brand, $20 for a preferred brand name and $30 for a non-preferred
brand name. A 90-day supply of mail order prescription
drugs would cost $30 for a generic brand, $60 for a preferred
brand name and $90 for a non-preferred brand name.
"All wellness features (including routine physical exams
and immunizations) in the plan are covered at 100 percent.
Why? It's important to keep our employees healthy," Hassan
said. "We want you to go to your doctor early and catch
things before you are sick."
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Hassan |
Community Blue Option 2 is essentially the healthcare
plan EMU employees currently have, Hassan said. It's just
that, in the future, employees will have to pay a premium
to keep those same benefits, most of which are covered
at 100 percent (in-network) and for which there is no deductible
for using in-network providers. Retail prescription drug
costs would mirror those under the Option 1 plan.
Using current FY 2006 numbers as an example, a single
person would pay $30.34 per month (on a pre-tax basis)
in healthcare premiums to retain the benefits he or she
has now. The monthly cost for two people would be $68.29
and, for a family, $81.85 per month. For comparison's sake,
the University, during FY2006, paid $381.56 in monthly
healthcare premiums for single people; $846.45 monthly
for two persons; and $1,002.04 each month for a family.
"The PPO 2 plan will require cost-sharing, but will provide
a higher level of benefits," Hassan said. "We're not asking
you to pay the full premium. We're asking you to pay the
difference between the premiums."
Hassan fully expects healthcare insurance costs to rise,
possibly in the 5-12 percent range, for FY 2007.
"I'm anticipating EMU may be in the middle. It's just
an unknown now," Hassan said.
Hassan urged AP employees to sit down at home and have
a family discussion about what healthcare plan best fits
their needs.
"We want you to take control and be a true consumer," she
said. "You know your medical needs and expenses better
than anybody."
