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Week of August 12, 2013

Open enrollment for 2014 benefits includes long-term disability plan

Faculty and staff who want to enroll in the Expanded Long-Term Disability (LTD) plan or increase their coverage level can do so during this year’s Open Enrollment (Oct. 28-Nov. 8) without having to provide a health statement of insurability.

LTD usually is not included in Open Enrollment and eligible faculty and staff can enroll at any time with approval based on a statement of good health. Because of enhancements to the Expanded LTD plan, the university is offering this one-time opportunity.

An extremely important plan, LTD provides up to 65 percent income replacement on covered base salary and benefits continuation if a faculty or staff member becomes totally disabled and can no longer work.

The plan will be enhanced in 2014 with:

• Increased university-paid coverage for income replacement (from $30,000 to $57,500).

• A shorter waiting period for new faculty and staff to receive university contributions (two years instead of four).

• Lower contributions for those who elect additional coverage up to their full salary when their salary exceeds $30,000.

• A change in retirement savings contributions for disabled employees (15 percent up to $57,500). Faculty and staff who earn more than $57,500 will need to elect additional LTD coverage to receive a contribution equal to 15 percent of their full salary.

Plan details are available on the Benefits Office website at: benefits.umich.edu/plans/ltd/newxltd.html

Changes for 2014

In addition to the LTD enhancements, the following benefits changes go into effect in 2014.

Co-pays will increase.

Medical: No co-pays will be charged for preventive care. Primary care office visits and urgent care visits will be $25, specialty care office visits will be $30 and emergency room visits will be $100. Co-payments for ER visits will be waived whenever the patient is admitted to the hospital.

Prescription drugs: The co-pay for generic tier-1 drugs will be $10, and $20 for brand name tier-2 drugs. The co-pay for tier 3 brand name medications will remain at $45. Savings Tip: Use NoviXus mail order pharmacy services for any ongoing maintenance medications that are taken regularly and save one third of the out-of-pocket cost over purchasing at a retail pharmacy.

More part-time employees will receive full university contributions toward health care.

Employees working 30 hours per week (75 percent effort) or more will be eligible for health care coverage with the same university contribution as full-time employees. This reduces the requirement for full university contributions from the current threshold of 32 hours per week or 80 percent effort.

Opt-out cash will be eliminated.

The university will no longer offer opt-out cash ($66.67/month) to employees who waive U-M health care coverage.

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