June 8, 2006

Healthcare strategy addresses rising costs

In an effort to address today’s rising healthcare costs, Northwestern has adopted a long-term health care strategy that gives faculty and staff greater choice and control over health care spending and takes advantage of new tax-deferment and savings legislation.

Associate Vice President of Human Resources Guy Miller said the changes will take effect Jan. 1, 2007. A newsletter, entitled “It’s Your Choice. Take Care,” will be mailed to employees throughout the summer to outline changes for Open Enrollment in the fall.

Faculty and staff are encouraged to evaluate the plans based on their personal circumstances and engage family members in the decision. The benefits division anticipates that after evaluating the new benefit options, many individuals may select a different health care plan than the one in which they are enrolled.

New plan highlights include:

•Online enrollment / For the first time, faculty and staff will enroll online rather than by completing paper forms.

• New coverage tiers / The number of coverage tiers will increase from single and family coverage options to four options, including employee only; employee and spouse; employee and child(ren); or employee, spouse and child(ren). This change is designed to reflect the range of financial and personal circumstances among faculty and staff.

• New PPO choices / Faculty and staff can choose between three different PPO plans including the Premiere PPO Plan similar to and replacing the current Plan A.

A second option called the Select PPO Plan; and a third option called the Value PPO Plan that includes a Health Savings Account. (HSA). The Value PPO Plan with a HSA takes advantage of tax-savings features outlined in recent federal legislation.

All three options provide coverage for the same types of health care services, such as physician care, hospitalization and prescription drugs. The plans differ in monthly premiums paid and in how employees and the plan distribute costs for health care services.

The University will continue to pay for the majority of health plan costs.