2018 Open Enrollment: October 30–November 14

What’s New/Changing for Staff & NBUF

What’s New/Changing for Staff and Non-Bargaining Unit Faculty?

Significant Changes are coming to Wright State Healthcare Plans

The below email was issued September 28, 2017 to Staff and Non-Bargaining Unit Faculty:

Email from Shari Mickey-Boggs, Associate Vice President and Chief HR Officer (PDF)


Cost Drivers and Key Considerations:

  1. Benefits represent 18% of our total unrestricted budget of which medical is the primary controllable cost.
     
  2. The $2.9 million expected cost increase for 2018 cannot be absorbed by the university.

    The University is working diligently to capture every opportunity for cost-reductions beyond those currently budgeted to increase the possibility of avoiding fiscal watch.
     
  3. The premiums will move to the previously targeted 20% average cost share.
     
  4. The PPO 90/10 plan has significantly cost more than the other two plans and continues to increase.
     
  5. Significant increases in pharmacy can be attributed to the expansion of specialty drugs.


Elimination of the PPO 90/10

The university’s costs for the PPO 90/10 plan has significantly outpaced the other two plan offerings over the past couple of years, and the same is expected to occur for 2017.  In addition, the market trend is elimination of PPO 90/10 plans and includes several IUC universities. 

Therefore, the PPO 90/10 plan will be eliminated for 2018.  Please refer to the chart below:

Plan CY 2015
$ Per Enrolled Employee
CY 2016
$ Per Enrolled Employee
PPO 90/10 $15,219 $17,596
PPO 80/20 $9,872 $9,557
HDHP w/HSA
employer contributions
$13,300 $14,000

 

Expanding Coverage Levels

As we proceed to right-size premiums for 2018, we utilized benchmark data to support establishing two new coverages:  Employee + child(ren) and Employee + spouse.  Previously the majority of employees in these two coverage levels were paying coverage for Employee + 1, the same premium cost, even though the medical costs spent on spouses is significantly higher than the medical costs spent on children.  Effective January 1, 2018, we will have four coverage levels. 

Also, the employees covering their children will move from the Employee + 2 or more coverage to Employee + child(ren). 

Furthermore, and in-line with best practices, there will be a standard relationship between the four coverage levels as noted in the chart below.  For example, Employee + child(ren) will pay 1.8 times the premium for Employee coverage while those electing Employee + spouse will pay 2.2 times the Employee coverage.   

  • Employee                                      1.0 x
     
  • Employee + child(ren)                   1.8 x
     
  • Employee + spouse                       2.2 x
     
  • Employee + family                         3.0 x

 

Medical Plans Design:  PPO 80/20

The deductibles and out-of-pocket maximums will increase effective January 1, 2018.

The deductible is the amount of money you pay before co-insurance is applied.

PPO (80/20) In-Network Non-Network
Single $800 $1,600
Family $1,600 $3,200


The out-of-pocket max (OOPM) is the most you will pay for covered services in a plan year. It’s the total you spend on deductibles, copays, and co-insurance for medical and pharmacy services.

PPO 80/20 In-Network Non-Network
Single $4,000 $8,000
Family $8,000 $16,000


NOTE:  In accordance with plan design,

       a. The Single amounts in charts above are for those employees who select Employee coverage.

       b. The Family amounts in charts above are for those employees who select Employee + child(ren), Employee + spouse, or Employee + family.

For more details on the PPO plans, please refer to the Plan Comparison available on the Human Resources Open Enrollment website.

 

Pharmacy Tier 4 Addition:  PPO 80/20

With the cost of specialty drugs continuing to increase, a 4th Tier has been added.  The first three tiers will remain unchanged. Effective January 1, 2018, the following is the pharmacy plan design for in network and retail for a 30-day supply:

Tier Type of Drug PPO 80/20
1 Generic $10
2 Brand Formulary 20%, Max $50
3 Non-Formulary 40%, Max $80
4 Specialty 25%, Max $200


Effective January 1, 2018, the following is the pharmacy plan design for in network, mail order for a 90-day supply:

Tier Type of Drug PPO 80/20
1 Generic $25
2 Brand Formulary 20%, Max $125
3 Non-Formulary 40%, Max $200
4 Specialty 25%, Max $500


Flexible Spending Account (FSA) - Healthcare

The IRS has increased the FSA Healthcare maximum for 2018 to $2,650.  This is a $50 increase form 2017.

There is no increase for FSA Dependent Care.  The contribution limit will remain at $5,000 per year ($2,500 for married filing separate).
 

Health Savings Account (HSA) employer contribution:  HDHP

Typically when HDHP plans are first offered, the employer HSA contribution is set at a higher percentage of the deductible.  After a few years, the employer HSA contribution is reduced to an industry norm.  Wright State has been reducing this amount annually to be in-line with cost sharing objectives, and consistency with benchmarking and best practices. The HSA employer contribution has been reduced to 25% of the deductible.

However, for 2018, you will receive the Wright State contribution earlier in the year.  Instead of four quarterly payments, the April deposit will be moved to January and the October deposit will be moved to July.  The two semi-annual deposits will be sent to Fifth Third by January 4th and July 5th.  

Wright State University's Annual Contribution to your Health Savings Account
Staff & Non-Bargaining Unit Faculty
Coverage 2017 2018
Employee $900 $500
Employee + 1 * $1,800 --
Employee + child(ren) -- $1,000
Employee + spouse -- $1,000
Employee + family $1,800 $1,000

*Not Applicable in Calendar Year 2018.
 

IRS increased HSA contribution Limit

The IRS issued the 2018 annual contribution limits listed below, increasing the Single coverage by $50 and Family coverage by $150.

  • $3,450 for Single coverage
  • $6,900 for Family coverage
  • $1,000 additional for HSA catch-up contributions (age 55 or older)

According to the IRS, It is your personal responsibility to ensure that you do not exceed these HSA contribution limits.  You can determine your total HSA contributions by adding the following:

  • Wright State University contributions, and
  • Your Personal paycheck contributions

 

Vision Service Plan (VSP) Enhancements

VSP provider network is expanding!!

  • More VSP doctors
  • More participating retail chains found in southwest Ohio
    • COSTCO, Pearle Vision, Thoma & Sutton, and SVS

TruHearing Hearing Aid Discount Program thru VSP

  • Save up to 60% on the latest brand-name hearing aid
    • 3 Provider visits for fitting and adjustments
    • A 45-day trial
    • 3-Year manufacturer warranty for repairs and 1-time loss and damage replacement
    • 48 free batteries per hear aid
  • Members and their family call 877.396.7194 and mention VSP


Eliminating Domestic Partner Benefits

Since federal law now allows everyone to marry, Wright State University will no longer offer benefits related to domestic partners and his/her dependent children after the 2018 calendar year. 

Also, no new domestic partner relationships can be established after December 31, 2017.

 

Medical Premiums

Given the changes occurring for 2018, we wanted to take the opportunity to provide a premium structure that reflects current industry models, allocates cost in-line with best practices, and maintains a model based upon gross earnings. The premiums were based on a 4-step process:

1. Horan Associates, our benefit consultant, provided total cost projections for the two plans at each of the new four coverages levels detailed above. 

Coverage Ratio PPO 80/20 HDHP
Employee 1.0x $568 $493
Employee + child(ren) 1.8x $1,022 $888
Employee + spouse 2.2x $1,250 $1,086
Employee + family 3.0x $1,704 $1,481


2. Next, these total costs were multiplied by 20% to obtain the targeted  employee cost share: 

Coverage Ratio PPO 80/20 HDHP
Employee 1.0x $114 $98
Employee + child(ren) 1.8x $204 $176
Employee + spouse 2,2x $250 $216
Employee + family 3.0x $342 $294


3. The decision was made to retain a salary tier structure, but did reduce the number of tiers from five to three tiers.  We set the salary levels for the tiers to reflect 1/3 of our benefit eligible employees within each tier.

Tier 1 Tier 2 Tier 3
<$47,000 $47,000 - $75,000 >$75,000
1/3 employees 1/3 employees 1/3 employees


4. The premiums for Tier 2 represents the 20% cost share noted in Step 2 above.  With three tiers, the discount value for Tier 1 needs to equal the additional percentage assigned to Tier 3. Consistent with the 1/3 guidance in Step 3, we established Tier 1 to represents 67% of Tier 2 premiums (a 33% decrease) and Tier 3 to represent 133% of Tier 2 (33% increase).

Tier 1 Tier 2 Tier 3
<$47,000 $47,000 - $75,000 >$75,000
67% 100% 133%


The resulting monthly medical premiums for 2018 are as follows:

Plan Coverage <47,000 $47,000 - $75,000 >$75,000
PPO 80/20 Employee $76 $114 $152
  Employee + child(ren) $136 $204 $274
  Employee + spouse $166 $250 $334
  Employee + family $228 $342 $456
         
HDHP Employee $66 $98 $130
  Employee + child(ren) $118 $176 $234
  Employee + spouse $144 $216 $286
  Employee + family $198 $294 $390

 

Dental and Vision Premiums

The dental and vision premiums were developed similar to the medical premiums.  The total cost was spread over the new four coverage levels utilizing the same relationship ratio as medical.  The 20% employee cost share was applied to the total costs.  These premiums will remain one tier.

Coverage

Ratio

Delta Dental of Ohio

 Vision Service Plan (VSP)

  Employee

1.0x

   $6.60

  $1.30

  Employee + child(ren)

1.8x

 $11.88

 $2.34

  Employee + spouse

2.2x

 $14.52

 $2.86

  Employee + family

3.0x

 $19.80

 $3.90

 

New Anthem Medical Cards

New Anthem Medical Cards will be sent to the following employees:

  • Current participants in the PPO 90/10 that elect either the PPO 80/20 or the HDHP plan for 2018
  • Everyone that elects the PPO 80/20 plan
  • Only new participants in the HDHP plan

      NOTE:  If you are in the HDHP plan today, your current Anthem cards will continue to be applicable in 2018. 

Your new Anthem insurance cards will be mailed to your home address. 

  • In addition, you can access a copy of your new card at www.anthem.com or on Anthem’s or Castlight’s mobile app late in December.
  • Remember to provide your new card to your medical and pharmacy providers.


Reminder:  Castlight

Your continued use of Castlight, reducing your dollars spent, will help us to reduce our total cost and keep premiums as low as possible. The university’s current registration is 36% and the return rate is 80%.

As a reminder, you can use Castlight to:

  • Save on the care you need. Find doctors, hospitals, medical services, and prescriptions. Compare them by cost and quality.
  • Understand your plan. See simple descriptions of your medical plan and what’s covered.
  • Review past expenses. Learn where you are in your deductible phase and how much you paid and why, so you can plan for the year ahead.
  • Make smart choices. Receive personalized recommendations based on your past care and in-network options.

To start using Castlight CLICK HERE or to download the mobile app CLICK HERE.

Castlight is provided free of charge for employees, spouses, registered domestic partners and adult dependents enrolled in a Wright State medical plan

 

Reminder: $50 Late Enrollment Fee

Wright State University believes it’s important for each employee to take the time to understand their healthcare options so they can select the coverage that best suits their needs and their budget. Regardless of current coverage, you must take action online to continue, change, enroll or waive your 2017 healthcare coverage.

A $50 late enrollment fee has been established to encourage our workforce to take action and submit their benefit elections during the October 30th through November 14th open enrollment.  Those who do not take action, will have the $50 late fee deducted from their January 2017 paycheck.

Enroll by the deadline to avoid a one-time $50 late enrollment fee!