October 24, 2002
Open enrollment begins; costs increasing
The annual medical/dental open enrollment has begun. This is your opportunity to review and make changes to your plan selections. The open enrollment period is now through Nov. 30. Coverage changes will take effect Jan. 1.
As with all state employees, UW employees can expect to pay more for health care coverage next year. The state Health Care Authority has stated in a news release that increased payments for health care coverage resulted from higher than expected health plan rate increases that were submitted to the state. The average state employee’s monthly payment will go from $41 to $74, effective Jan. 1. This represents a 80 percent increase, but is about 14 percent of the actual cost of coverage (i.e., the University pays approximately 86 percent of the cost of coverage).
To try and soften the blow of increased costs, the UW will allow employees to open Flexible Spending Accounts (FSA). These accounts can help employees defray the costs of deductibles, co-payments and other expenses not covered by health insurance, by using pre-tax money. If employees choose to deposit funds in an FSA, that money can be used only to pay for medical or dental expenses. Money that is not used in that calendar year is forfeited. The chief advantage for the employee is that money deposited in an FSA is untaxed. The actual savings will depend on the employee’s tax status.
“We’re really excited to be partnering with the state Health Care Authority, which has the statutory authority for flexible spending accounts,” says Kathleen Dwyer, assistant director of human resources. “We believe this will provide a great way for some employees to realize significant savings.”
For details, see http://www.washington.edu/admin/hr/benefits/fsa.html.
You can find out more about FSAs at the UW’s benefit fairs. Fairs will be offered from 10 a.m. to 4 p.m. Tuesday, Oct. 29 at the Harborview Medical Center Research and Training Building; Wednesday, Oct. 30 at UW Med-ical Center and Health Sciences Lobby; and Thursday, Oct. 31 at the HUB West Ballroom.
One plan that has been offered, Aetna U.S. Healthcare, will not be available next year. It is expected that most Aetna subscribers will be able to access their current physicians through another plan. There are other changes in the benefits provided by individual health care plans. More information is available on the Public Employees Benefits Board Web site, www.wa.gov/hca/pebb.htm
