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Something Old, Something New, Something Blue(Cross) and UniCare Too

New health benefits strategy addresses rising costs

October 10 is the start of the open enrollment period for health care benefit coverage. With the help of Hewitt Associates, a human resources consulting company based in Lincolnshire, Illinois, the University has developed a new long-term health care strategy that offers different choices from previous years. Benefits Director Tom Evans recommends that employees do their homework—go to the meetings, read the material, use the new online resources, and talk to the insurance company representatives. Choices will be explained in detail at the various meetings offered by Human Resources, but here are the enrollment  highlights:

• This year every benefits-eligible employee must elect to enroll in or waive coverage for a health care plan, health care flexible spending account, and dependent care flexible spending account.*
• Enrollment will be done by school. Employees will be notified of the date by e-mail during the week of October 10.
• The University will choose default coverage for those who do not pick a health plan.
• Enrolling or waiving can be completed online only at www.benefits.northwestern.edu. Enrollment directions, decision-making and cost-estimation tools, and online tutorials are also available at this site. Online enrollment selections can be saved so employees can make multiple visits to the site without having to start over each time.
• Employees will receive an enrollment booklet complete with worksheet through the University mail to help with decision making and online registration.

*See the June/July 2006 benefits newsletter at www.northwestern.edu/hr/newsletter.html for a glossary of insurance terms.

New plans, different plans, more choices, fewer choices. Here are the plan highlights:

• HMO providers are reduced from four to two, namely HMO Illinois and UniCare. UniCare has contracted with NMFF physicians and Northwestern Memorial Physicians Group. HMO Illinois has contracted with ENH physicians. Why? Since HMOs no longer cover specific geographic areas, and offer similar benefits, four are not needed, said Guy Miller, associate vice president of human resources. Also, HMOs offer better rates if they can take over members from another HMO.
• PPO coverage includes three options rather than just Plan A offered in previous years.  Why? With employees picking up more of the cost of health care, they will now have choices as to how this will affect them. Choices between higher premium and lower out-of-pocket payments or vice versa allow the employees more control over how they pay for care. The Premier PPO plan is the closest to the present Plan A. The Value PPO plan is a high deductible plan that offers subscribers the optional use of a  health savings account (HSA). This account allows the employee to put aside pretax dollars to cover medical expenses.
• Coverage tiers for premium deductions have gone from two to four to better fit personal circumstances. Couples without children no longer have to pay family rates. Single parents are now offered coverage based on their  needs.
• Out-of-pocket maximums are determined by income to give greater financial protection to those with smaller resources should they have to cope with extraordinary medical expense.

Despite the changes, some things remain the same:

• Northwestern University will continue to pay most of the cost of health care plan coverage.
• The prescription plan will stay the same, as will dental, eye care, and office visit co-pays.
• The level and types of services the plan covers will remain the same.
• Blue Cross Blue Shield will continue as the provider network for those enrolled in PPOs or HMO Illinois.

Important dates