2006 open enrollment memo

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					TO: FROM:

USI Faculty and Staff Angie Brawdy Sr. Manager, Benefits and HRIS November 3, 2005 2006 Open Enrollment Information

DATE: RE:

Once a year you have the opportunity to evaluate your health insurance needs and make changes in other employee benefits such as the flexible benefit plan or the voluntary supplemental life insurance program. During the 2006 Open Enrollment from Thursday, November 3, 2005, through Friday, November 18, 2005, you may:       Apply for health insurance coverage; Change your current health insurance coverage; Add or delete dependents to your health insurance coverage; Enroll in the flexible benefit plan; Enroll in or change coverage in the voluntary supplemental life insurance program; and/or Enroll in the new optional vision plan.

The University provides you with several health care options. In 2006 the University will offer three plans: Anthem - Blue Access 100 Plan; Anthem – Blue Access 500 Plan; and Welborn HMO. Each of these options includes dental coverage through Health Resources, Inc. (HRI). Attached is an Insurance Comparison Overview sheet for you to compare the benefits of the different health plans.  New in 2006 is Optional Vision Coverage. Spectera will provide coverage for annual exams, frames and lenses, contact lenses, and laser vision correction. The premium for the coverage will be paid on a pre-tax basis by the employee.

It is very important for you to take time to review the enclosed information as you make your health care choices for 2006. To help you better understand your health insurance benefits, an Open Enrollment Fair will be held on Monday, November 14 in the University Center in Carter Hall A-B. Representatives from Anthem Insurance Companies, Inc., Welborn Health Plans, Health Resources, Inc., The Nyhart Company (the plan administrator for the flexible benefit plan), and Spectera, the new vision provider, will be available to discuss benefit options with you and to help with your health care decisions. The Human Resources Department will move to the Wright Administration Building, Room FA 166 on or about November 3, 2005. If you have any questions regarding open enrollment, please contact Michelle Davis at mdavis@usi.edu or Angie Brawdy at abrawdy@usi.edu.

OPEN ENROLLMENT INFORMATION
An Open Enrollment Fair with representatives from Anthem Insurance Companies, Inc., Welborn Health Plans, Health Resources, Inc., The Nyhart Company, and Spectera will be held on:

Monday, November 14, 2005 Carter Hall A & B ~ 9:00 a.m. to 3:30 p.m.
Small group meetings to discuss 2006 plans and to answer questions about the flexible spending accounts will be held on: Monday, November 14, 2005 10:00 a.m. in Carter C 1:00 p.m. in Carter C Tuesday, November 15, 2005 5:00 a.m. in FA 166 (To accommodate third shift)

If you are unable to attend one of the group meetings or the open enrollment fair, but are interested in talking with someone about your health insurance coverage, please contact Angie Brawdy at abrawdy@usi.edu or (812) 464-1988. If you are a current participant in one of the Anthem Plans or the Welborn HMO Plan, you may change your coverage without providing evidence of insurability for any of the plans. However, if you previously waived coverage for yourself and/or your dependents, Anthem requires submission of a Certificate of Health Coverage to waive the pre-existing condition waiting period. Enrollment papers will be available at the Open Enrollment Fair on November 14, 2005, or may be obtained from the Human Resources Department in the Wright Administration Building, Room FA 166.

Open Enrollment will be the only opportunity during the 2006 calendar year to change your coverage and/or add dependents to your health insurance plan, unless you have a qualified change in family status. Enrollment papers must be completed by November 18, 2005, to ensure coverage effective January 1, 2006. Your current health insurance coverage will be continued, unless you request to change your coverage.
The 2006 insurance rates and open enrollment information for health/dental insurance coverage, the flexible benefit plan, the voluntary group term life insurance plan, and the optional vision insurance plan, are included with this enrollment package.

PLEASE READ THIS IMPORTANT INFORMATION. OPEN ENROLLMENT WILL TAKE PLACE THURSDAY, NOVEMBER 3, 2005, THROUGH FRIDAY, NOVEMBER 18, 2005.

HEALTH/DENTAL INSURANCE PLAN DESIGN INFORMATION
Attached is an Insurance Comparison Overview sheet that will allow you to compare the benefits of the different health plans listed below. 

ANTHEM - BLUE ACCESS 100 PLAN Co-Insurance – Change from 100% in-network to 90%/10% in-network; 80%/20% non-network to 70%/30% non-network Annual out-of-pocket maximum – Increase from $500/$1,000 to $1,000/$2,000 in-network; $1,000/$2,000 to $2,000/$4,000 non-network



ANTHEM - BLUE ACCESS 500 PLAN No plan design changes for 2006



WELBORN HMO PLAN Doctor Office Visits – Change from 90% after co-payment to 100% after co-payment Network – Change from St. Mary’s and Deaconess network to Deaconess only



HEALTH RESOURCES, INC. (DENTAL) PLAN No plan design changes for 2006

HEALTH/DENTAL INSURANCE EMPLOYEE MONTHLY RATES
2006 Monthly Rates Employee Employee + Child(ren) Employee + Spouse Family Blue Access 100 $100.02 $192.80 $249.40 $281.10 Blue Access 500 $47.96 $95.54 $121.14 $140.06 Welborn HMO $87.32 $170.46 $186.84 $263.74

FLEXIBLE BENEFIT SPENDING ACCOUNTS
Flexible Benefit Spending Accounts allow you to set aside pre-tax dollars to pay for certain unreimbursed medical and dental expenses, and dependent care expenses. The spending account limit for the unreimbursed medical and dental expense reimbursement plan will remain at $4,000 per year. The dependent care plan will remain at the federal maximum allowance of $5,000 per year. Summary plan descriptions are available in the Human Resources Department. In 2004, the IRS ruled that over-the-counter drugs are an allowable expense. Some items that cannot be claimed are vitamins and dietary supplements. Please keep this in mind when determining the annual election for 2006. Examples of unreimbursed medical expenses include eyeglasses, contact lenses, contact lens cleaning solutions, co-payments for doctor’s visits, deductibles, over-the-counter drugs, and other costs (health or dental) not covered by co-insurance. An example of the tax savings is attached. For calendar year 2006, the University will adopt the grace period as allowed under IRS notice 2005-42. Adopting the grace period will allow employees to use 2006 funds remaining in their flexible spending accounts at the calendar year end for purchases through March 15, 2007. The grace period will only apply to the unremibursed medical and dental expenses. The dependent care flexible spending account will still need to be exhausted in calendar year 2006.  CURRENT PARTICIPANTS Employees currently enrolled in flexible benefit spending accounts need to complete a new Section 125 Plan Enrollment Form, even if allocation amounts remain unchanged for calendar year 2006. These enrollment forms should be completed and returned to the Human Resources Department, FA166, by November 18, 2005. Benefit election for current participants in the Flexible Benefit Premium Only Plan will continue, unless you choose to change your election.  NEW ENROLLEES Employees interested in establishing a Flexible Benefit Spending Account for 2006 will need to complete a Section 125 Plan Enrollment Form. Enrollment forms should be completed and returned to the Human Resources Department, FA166, by November 18, 2005. The election form for the flexible benefit plan is attached. A Health Care Expense Reimbursement Worksheet also is attached. This form allows you to estimate the amount of out-of-pocket health care expenses for 2006. The election form also can be found on the USI Human Resources Benefits website: http://www.usi.edu/hr/benefits/open2006.asp.

VOLUNTARY GROUP TERM LIFE INSURANCE
Voluntary Group Term Life Insurance offers you the option to purchase additional term life insurance at low group rates on a payroll deduction basis for yourself, your spouse, and/or dependent children. You may purchase up to $500,000 or five times annual earnings, whichever is less. The life insurance program is offered through Prudential Life Insurance Company. Please note that this insurance plan is strictly voluntary and is offered as a supplement to the University-provided life insurance. During open enrollment, you may increase and/or add plan coverage. If you previously waived coverage and would now like to enroll, please contact the Human Resources Department for forms and plan information.

OPTIONAL VISION COVERAGE
New in 2006…..you have the option to elect optional vision coverage through a pre-tax payroll deduction with Spectera as the provider. The plan covers annual exams (after co-payment), spectacle lenses, frames, contact lenses, and a one-time discount on laser vision correction services. It also allows participant choice of facility/provider both within and outside the network; retail and private practices are included. Please note that you do not have to participate in the University medical insurance plan to enroll in the optional vision plan. Additional information concerning the new plan will be available at the Open Enrollment Fair or in the Human Resources Department. The enrollment application is attached. The plan design includes the following benefits:        $10 Co-payment for an annual eye exam Lenses available every 12 months Frames available every 24 months at 100% Lenses covered at 100% including single vision, bifocal, trifocal, and lenticular Contact Lenses available every year at 100%; if contacts fall outside of the covered-in-full benefit, a $150 allowance is given Polycarbonate lenses are covered-in-full Scratch coating is covered-in-full

Type of Coverage Employee Employee + Child(ren) Employee + Spouse Family

Monthly Premium $7.70 $15.20 $14.50 $22.85

More information about Spectera, including the provider network, is available on-line at www.spectera.com.

OPEN ENROLLMENT INFORMATION ON-LINE
Open enrollment information, including this memo and information, can be found on the USI Human Resources Benefits website at www.usi.edu/hr/benefits/open2006.asp. The forms available on-line are: Flexible Benefits Plan Election Enrollment Form; Health Care Expense Reimbursement Worksheet; WorkRelated Dependent Care Expense Reimbursement Worksheet; Insurance Comparison Overview; and, Open Enrollment 2006 Memo.

HUMAN RESOURCES CONTACTS
Employees should contact Michelle or Angie in the Human Resources Department with any questions concerning the 2006 Open Enrollment. Please note that the Human Resources Department plans to move to the Wright Administration Building, room FA 166 on or about November 3. Michelle Davis at 464-1781, or via e-mail to mdavis@usi.edu Angie Brawdy at 464-1988, or via e-mail to abrawdy@usi.edu

PLEASE REMEMBER THAT ALL OPEN ENROLLMENT FORMS MUST BE COMPLETED AND RETURNED TO THE HUMAN RESOURCES DEPARTMENT NO LATER THAN NOVEMBER 18, 2005, TO BE EFFECTIVE JANUARY 1, 2006.

Attachments: Example of Tax Savings of Flex Plan Section 125 Plan Enrollment Form Health Care Flexible Spending Account Worksheet Insurance Comparison Overview Glossary of Terms Spectera Enrollment Application (optional vision coverage)


				
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