Eastern Michigan University's open enrollment period for
healthcare coverage and the Flexible Spending Account (FSA)
is scheduled through Nov. 2.
During this period, athletic coaches, administrative professionals,
confidential clericals, campus police and 100-percent lecturers
may choose to change their previously selected PPO Option
during this period. Clerical/secretarial; food service,
custodial and maintenance; and police sergeant employees
who wish to remain in their current health plan need to
do nothing further.
All EMU employees also have the right to waive their EMU
health coverage, provided health coverage is verified through
their spouse's employer (other than EMU) or through another
non-EMU health care plan. Employees, who have previously
waived healthcare coverage, may elect to return to EMU's
health plan during open enrollment. Please refer
to your open enrollment booklet for further details. The
booklet is available on the Human Resources Web site at: http://www.emich.edu/hr/benefits/openenroll2007.pdf
The dates listed in the "Health Care Options" booklet
recently mailed to the homes of EMU employees are incorrect.
The correct dates for the open enrollment period are Oct.
8, 2007, through Nov. 2, 2007. This booklet provides specific
information on each of the available health plans. The
effective date of the new coverage is Jan. 1, 2008.
Athletic coaches, administrative professionals and confidential
clericals need to carefully review both cost-sharing changes
and the change in mail-order prescription drug coverage.
The cost sharing for the PPO Option 2 is pre-tax. The amount
for the premium should not be included in the Flexible
Spending Account amount. The prescription drug co-payment
for mail order will be changed to two co-payments for a
three-month supply, effective Jan. 1, 2008.
Health plans for faculty, PTs, visiting faculty
to change
Faculty health plans are changing this year. Faculty currently
in the Community Blue PPO must select a new PPO Option
from the two Community Blue PPO Options — Option 1 and
Option 2 — offered.
The current Community Blue PPO will end as of Dec. 31,
2007. A detailed description of the PPO Options and cost
sharing is in the open enrollment booklet.
Faculty currently enrolled in the PPO, who do not select
a new PPO option by the end of the open enrollment period,
will default to Option 1. Option 1 will not have cost sharing,
while Option 2 will require cost-sharing based on coverage
type — $650 annually for single coverage; $950 annually
for couple or family coverage. These premiums are pre-tax
deductions. The amounts should not be included in a Flexible
Spending Account (FSA) amount.
Faculty in the Traditional Plan will have a prescription
drug card, effective Jan. 1, 2008. The Master Medical benefit
will no longer have prescription coverage. The drug card
will provide coverage as follows: retail pharmacy;
$10 co-payment for generic drugs; $20 co-payment for preferred
brand name; and $30 co-payment for non-preferred, brand
name prescriptions. Mail order provides a three-month
supply (90 days) for two co-payments based on the three
tiers. Annual pre-tax cost sharing is $1,200. A
new BCBS card will be issued effective Jan. 1, 2008.
Priority Health has purchased Care Choices. The prescription
coverage has changed. Effective Jan. 1, 2008, the co-payment
for generic drugs will be $15 and the co-payment for brand
name drugs will be $25. Mail order will require two co-payments:
$30 for generic drugs and $50 for brand-name drugs. Annual
pre-tax cost sharing is $1,200
Faculty, who are enrolled in the BCBSM Traditional Plan
and Priority Health, and have never been enrolled in the
Community Blue PPO, will be eligible to receive a $1,000
incentive to base salary, effective September 2008.
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Hassan |
"Selecting one of the two Community Blue PPO Options offered
during this open enrollment period can do this," said Jeanette
Hassan, EMU's director of benefit programs.
Professional Technical (PT) employees and visiting faculty
health plans also are changing this year. Professional
Technical employees and visiting faculty, currently in
the Community Blue PPO, must select a new PPO option from
the two Community Blue PPO options offered, Option 1 and
Option 2.
The current Community Blue PPO will end as of Dec. 31,
2007. A detailed description of the PPO Options and cost
are in the open enrollment booklet. Professional technical
employees and visiting faculty employees who do not select
an option by the end of open enrollment (Nov. 2, 2007)
will default to Option 1. Option 1 will not have cost sharing,
while Option 2 will require cost sharing based on coverage
type
— $650 annually for single coverage; $950 annually
for couple or family coverage. These premiums are pre-tax
deductions.
During the open enrollment period, any changes relating
to dependents (additions which were not previously added
within 30 days of the event) may be completed as well.
In addition, verification of the IRS dependency for children
between the ages of 19 and 24 must be provided during this
period. The rider costs are still pending. These rates
will be announced as soon as they are received.
The Benefits Office, located at 140 McKenny Hall, must
receive all enrollment forms no later than Friday, Nov.
2, 2007.
Flexible Spending Account to include FSA card
This year's open enrollment period for the Flexible Spending
Account (FSA) runs through Friday, Nov. 2, 2007, with an
effective date of January 1, 2008. Ceridian Benefits Service
administers the FSA.
"The FSA gives you an easy, convenient way to set aside
money on a pre-tax basis to pay medical, dental and dependent
care expenses, Hassan said. "This
reduces your taxable income for the calendar year, thereby
increasing your available income."
For the 2008 enrollment kit, a summary of Ceridian's new
FSA Card; and an explanation of the way the FSA works,
check the EMU Human Resources Benefits Web site at http://www.emich.edu/hr/benefits/FSA.html
Anyone who has regular or predictable out-of-pocket-expenses,
for which they are not reimbursed, should consider an FSA.
These expenses include medical/dental costs, child day
care and other related costs, such as over-the-counter
medication, contact lens solution, etc., Hassan said. Cost-sharing
premiums are already pre-taxed and cannot be included in
the FSA amount.
"The FSA is very simple. You decide how much of your salary
to set aside annually," Hassan said. "That amount is then
deducted from each pay period on a pre-tax basis and placed
in a medical or dependent care, flexible spending account.
You will continue to pay your out-of-pocket expenses."
This year, the Benefits Office is introducing the use
of an FSA card. This is a debit card, which is linked to
an employee's healthcare FSA balance. When an EMU employee
incurs an eligible healthcare expense, the employee swipes
their FSA card at the point of purchase. An employee also
can submit their receipts to Ceridian, and will be reimbursed
for eligible costs from their FSA account.
"Just as the money was exempt from taxes when it went
into the account, it is not taxed when you remove it," Hassan
said. "You can set aside up to a maximum of $5,000 each
— per year per family — for health and dependent
care expenses. There will be a minimal fee for 10-percent
Lecturers."
Under federal law, money cannot be interchanged between
medical/dental and dependent care accounts, and unused
money will be forfeited at the end of the year. All enrollment
forms must be turned in no later than Friday, Nov. 2, 2007. If
an EMU employee does not enroll in the plan this year,
they can sign up during next year's open enrollment period
or within 30 days of the birth or adoption of a child for
the Dependent Care Account.
"This is a beneficial program, which can provide substantial
tax savings. We encourage you to carefully review the FSA
material, which is on the EMU Human Resources Benefits
Web site," Hassan said.
Print off the Flexible Spending Account enrollment form,
complete it and turn it to the Benefits Office no later
than Nov. 2, 2007. Ceridian offers a password secured Web
site, which allows employees to keep track of their accounts
as well as the option to have any reimbursement deposited
directly in their own bank account.
For questions, call the Benefits Office at 487-3195.
