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University to Consolidate Medical Insurance Under Single Carrier
Posted 9/19/2005
The Board of Regents approved a recommendation from the Benefits Task Force on Friday, Sept. 16, to consolidate all employee medical insurance under a single carrier, in order to avoid significant premium increases.
Beginning Jan. 1, 2006, all medical insurance benefits for university employees will be provided through UnitedHealthcare. University employees who are members of the ConnectiCare HMO plan will be able to switch to a virtually identical HMO plan under UnitedHealthcare.
“Most ConnectiCare HMO members will not see any difference in their coverage, other than the fact that they will be insured by a different carrier,” said Beverly Maksin, vice president for finance and administration and chair of the Benefits Task Force. “UnitedHealthcare will offer our employees an HMO plan that is virtually identical to the ConnectiCare plan.”
A large majority of the doctors who participate in the ConnectiCare HMO plan are also members of UnitedHealthcare’s extensive HMO provider network. Therefore, most employees who move from the ConnectiCare HMO to the UnitedHealthcare HMO will be able to continue to see the same doctors.
In fact, those employees will now have access to a much larger local, regional, and national network of health care providers under UnitedHealthcare.
The switch to a single carrier will not affect those employees who continue with the UnitedHealthcare Point of Service plan. During the upcoming open enrollment period, all university employees will be able to choose between the UnitedHealthcare Point of Service Plan and the UnitedHealthcare HMO plan.
Reasons for the Change
Without this consolidation, the university and many of its employees would have faced double-digit premium increases for 2006 medical insurance coverage. Employees pay a percentage of their premium costs, and the university pays the majority of it.
As stated in an Aug. 31 UNotes article, premiums for employer-sponsored medical insurance have been skyrocketing around the country in recent years, due to such factors as an aging population, rising medical technology costs, and dramatic growth in the price and utilization of prescription drugs.
After reviewing proposals from several insurance carriers, the Benefits Task Force determined that projected premium increases for 2006 could be significantly reduced if coverage for all university employees is consolidated under a single carrier. The single-carrier arrangement will enable the university to contain premium increases to 7 percent for 2006.
“I am very pleased that the Benefits Task Force has found a way to minimize cost increases to the university and its employees, while preserving comprehensive and high quality coverage,” Maksin said. She pointed out that the university hired R.C. Knox as its benefits broker last year in order to develop a more strategic approach to benefits, and that decision has paid off.
“R.C. Knox has been an extremely valuable resource in this process,” Maksin said.
Watch for your open enrollment packets and for future articles in UNotes Daily to learn more about 2006 medical insurance benefits. There also will be informational meetings in late October to answer your questions about the upcoming consolidation.
The members of the Benefits Task Force are: Beverly Maksin (chair), Denise Bard, Lisa Belanger, Andy Buonano, Ann Costello (consulting member), Sheldon Eisenberg, Susan Fitzgerald, Pam Frazier, Lynn Galvin, Arosha Jayawickrema (consulting member), Joel Kagan, Peter Schuyler, and Barbara Steinberger.
Beginning Jan. 1, 2006, all medical insurance benefits for university employees will be provided through UnitedHealthcare. University employees who are members of the ConnectiCare HMO plan will be able to switch to a virtually identical HMO plan under UnitedHealthcare.
“Most ConnectiCare HMO members will not see any difference in their coverage, other than the fact that they will be insured by a different carrier,” said Beverly Maksin, vice president for finance and administration and chair of the Benefits Task Force. “UnitedHealthcare will offer our employees an HMO plan that is virtually identical to the ConnectiCare plan.”
A large majority of the doctors who participate in the ConnectiCare HMO plan are also members of UnitedHealthcare’s extensive HMO provider network. Therefore, most employees who move from the ConnectiCare HMO to the UnitedHealthcare HMO will be able to continue to see the same doctors.
In fact, those employees will now have access to a much larger local, regional, and national network of health care providers under UnitedHealthcare.
The switch to a single carrier will not affect those employees who continue with the UnitedHealthcare Point of Service plan. During the upcoming open enrollment period, all university employees will be able to choose between the UnitedHealthcare Point of Service Plan and the UnitedHealthcare HMO plan.
Reasons for the Change
Without this consolidation, the university and many of its employees would have faced double-digit premium increases for 2006 medical insurance coverage. Employees pay a percentage of their premium costs, and the university pays the majority of it.
As stated in an Aug. 31 UNotes article, premiums for employer-sponsored medical insurance have been skyrocketing around the country in recent years, due to such factors as an aging population, rising medical technology costs, and dramatic growth in the price and utilization of prescription drugs.
After reviewing proposals from several insurance carriers, the Benefits Task Force determined that projected premium increases for 2006 could be significantly reduced if coverage for all university employees is consolidated under a single carrier. The single-carrier arrangement will enable the university to contain premium increases to 7 percent for 2006.
“I am very pleased that the Benefits Task Force has found a way to minimize cost increases to the university and its employees, while preserving comprehensive and high quality coverage,” Maksin said. She pointed out that the university hired R.C. Knox as its benefits broker last year in order to develop a more strategic approach to benefits, and that decision has paid off.
“R.C. Knox has been an extremely valuable resource in this process,” Maksin said.
Watch for your open enrollment packets and for future articles in UNotes Daily to learn more about 2006 medical insurance benefits. There also will be informational meetings in late October to answer your questions about the upcoming consolidation.
The members of the Benefits Task Force are: Beverly Maksin (chair), Denise Bard, Lisa Belanger, Andy Buonano, Ann Costello (consulting member), Sheldon Eisenberg, Susan Fitzgerald, Pam Frazier, Lynn Galvin, Arosha Jayawickrema (consulting member), Joel Kagan, Peter Schuyler, and Barbara Steinberger.
