Salary, Health Plan Adjustments & Open Enrollment
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1 From: Sent: Tuesday, April 18, 2017 To: Subject: 2017 Salary, Health Plan Adjustment & Open Enrollment OP Total Comp Communicator Is this not displaying correctly? Click here to view it in your browser Salary, Health Plan Adjustments & Open Enrollment This communication details the salary adjustments and health plan benefits for office professional employees, as well as information on open enrollment. Compensation Under the current collective bargaining agreement between Central Michigan University and UAW Local 6888, wage adjustments for bargaining 1
2 unit members shall be the same as provided to the professional and administrative employee group. Since the professional and administrative base salaries will remain unchanged for , office professional employees will also remain unchanged. This action is largely the result of factors such as uncertain state funding and continued enrollment challenges, including the declining Michigan high school student population, concerns among prospective international students due to U.S. governmental policies, and increased competition, especially in the online market. University leaders continue to work to align projected revenue and expenses for fiscal year , which begins July 1. Efforts in the current and upcoming fiscal year will reduce the university s nearly half-billion dollar operating budget by about $20 million. Medical/Prescription and Dental Premium Cost CMU recognizes a high-quality benefits package is important to attracting and retaining talented faculty and staff. As a result, Human Resources and university leaders work to keep health benefits competitive while also containing the costs that are shared by the university and its employees. Medical and prescription premium costs which saw double-digit increases each of the past two years will increase another 4 percent to 6 percent this year. High-cost claims, specialty pharmacy drugs, advances in medical treatment and overall medical inflation are driving the escalation. Dental premium costs also will increase again. The premium cost for the Meritain plan will increase by 11.4 percent, with an 8 percent climb for the plan. During the next year, CMU will continue to examine how best to manage the growing expenses of providing high-quality health benefits to employees. Medical Plan Changes To help control costs, a few benefit improvements and changes will be made to the Blue Cross Blue Shield PPO1 and PPO2 medical plans. The changes 2
3 are developed with input from CMU s Health Care Committee, an advisory group of staff and faculty members from across the university. They are briefly described below. American Well (Amwell) online health care will be introduced to provide 24/7/365 access to board-certified doctors via telephone and video for non-emergency illnesses or conditions. This lower cost alternative to urgent care or an emergency room visit allows employees and covered dependents to connect with a doctor without leaving home. Emergency room copays will increase from $75 to $100 per visit (copay is waived for inpatient hospitalization and accidental injury) Benefit year (July 1 June 30) deductibles and out-of pocket maximums will increase. o o Blue Cross Blue Shield PPO1 medical plan In-network Deductible: $200 Single/$400 Family (currently $100 single / $200 family) In-network Out-of-Pocket Maximum: In-network: $800 Single/$1,600 Family (currently $600 single/$1,200 family) Blue Cross Blue Shield PPO2 medical plan In-network Deductible: $400 Single/$800 Family (currently $250 single / $500 family) In-network Out-of-Pocket Maximum: In-network: $1,600 Single/$3,200 Family (currently $1,250 single/$2,500 family) Note: Out-of-network deductible and out-of-pocket maximums will also increase. Further details regarding plan design changes and premium cost share is available on the open enrollment webpage. Health Care Premium Cost Share Without a salary increase, CMU leaders will maintain the health care premium cost share percentage for CMU s contribution will continue 3
4 at 87 percent of the Blue Cross Blue Shield PPO 1 medical, CVS Caremark prescription and Meritain 100/50/50 dental premium costs. This premium contribution is applied to the plan selected by the employee. The difference between the CMU contribution and the cost of the selected plan becomes the employee cost, as shown below. Medical/Prescription plans o PPO1: 87% university/13% employee o PPO2: 99.5% university/0.5% employee o High Deductible Health Plan (HDHP): 95% university/5% employee HSA contribution: CMU will again contribute to the Health Equity Health Savings Account. Dental plans o 100/50/50: 87% university/13% employee o 100/75/50/50: 50% university/50% employee Benefits Open Enrollment runs from April 24 to 5 pm EST on May 5 Open enrollment is MANDATORY. Every benefit-eligible employee MUST go online to re-enroll or waive medical/prescription, dental, vision, flexible spending account and health savings account. Employees who do not make their benefit elections will be enrolled automatically in the Blue Cross Blue Shield PPO2 medical/prescription and Meritain dental plans. They will not be enrolled in vision coverage, nor have a flexible spending account or a health savings account.. Employees who currently waive medical/prescription and dental coverage will continue without coverage unless they change their elections during open enrollment. Questions? Contact Employment Services at , Employee Relations at 989-4
5 , or Benefits and Wellness at CMU, an AA/EO institution, strongly and actively strives to increase diversity and provide equal opportunity within its community. Copyright Central Michigan University, Mount Pleasant, Mich Phone
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