MEDIA CONTACT: Judy Moore at 847-491-4819 or jkm229@northwestern.edu

October 6, 2004

Open Enrollment Begins Oct. 25

Open Enrollment for the 2005 benefit programs begins Monday (Oct. 25) and continues through Nov. 19.

Open Enrollment is the one time each year when the University announces benefit plan changes and monthly premium contribution rates for the next calendar year and benefits-eligible faculty and staff may make changes to plan selections.

It also is the period to enroll in the Flexible Spending Account (FSA) Health Care and Dependent Care Accounts for new or continued participation in the next calendar year.

The ability for benefits eligible employees to view benefit plan selections on line will be available for the first time during Open Enrollment as one of a number of self-service initiatives. Individuals will receive an e-mail notification with instructions when this feature is available.

Major benefit plan changes for 2005 include the offer of an optional new vision plan; the automatic enrollment of eligible but not participating employees in the Long Term Disability Plan; a new claims administrator for the Short Term and Long Term Disability plans; the availability of a new Blue Cross-Blue Shield PPO Dental Plan; an increase in mail order prescription drug co-payments and maximum out-of-pocket payments; new premium rates for the Health, Dental and Long Term Disability Plans; the choice of TIAA-CREF’s nine mutual funds; an increase in the maximum monthly and annual amounts an individual may contribute to the FSA Health Care Account; and decreased premiums and a new plan sponsor for the Accidental Death and Dismemberment Plan.

Here are the details about the changes that will become effective Jan. 1.

• New Vision Plan Option. For the first time, Northwestern is offering a voluntary employee-paid Vision Plan that will be sponsored by Spectera, one of the two leading vision plan companies in the country. This new plan will be offered to benefits eligible faculty and staff. Plan benefits include coverage for an eye exam every 12 months, lenses for glasses or contacts every 12 months and frames every 24 months. There is a $10 co-payment for the eye exam and a $10 co-payment for a broad assortment of frames and materials. Spectera uses a national provider network of nearly 18,000 retail chain and private practice providers. This plan provides a new vision coverage option to members enrolled in the PPO plan, which does not cover vision services. HMO members may find that they also may benefit from enrolling in this plan.

• New Blue Cross-Blue Shield Dental Plan. The current Blue Cross-Blue Shield Indemnity Plan will be replaced by the Blue Cross PPO Dental Plan. Members currently enrolled in the plan will be automatically transferred to the PPO Dental Plan. This new plan will provide plan members with additional savings when care is provided by a PPO dentist. There will be no reduction in coverage when care is received by a non-PPO dentist. Individuals not currently enrolled in the Blue Cross-Blue Shield or First Commonwealth Dental Plans may apply for Blue Cross PPO coverage during Open Enrollment. Documentation of good dental condition is required.

• New Disability Plan Claims Administrator. The Office of Risk Management will replace Aetna as claims administrator for the Short Term and Long Term Disability Plans. Risk Management currently administers Workers’ Compensation claims and has the expertise and experience to administer disability plans, providing both cost savings to the University and more effective services to University employees.

• New Health Plan Monthly Premium Amounts. Monthly Health Plan premiums will increase depending on the plan and coverage selected. These increases reflect market trends and plan utilization for hospital, physician and prescription drug services. Monthly health plan premiums will increase overall by approximately 10 percent though will vary by health plan. The University has absorbed the majority of cost increases in excess of $3 million. New premium rates are effective beginning with December 2004 paychecks.

• Automatic Long Term Disability Plan. During Open Enrollment all eligible but not participating faculty and staff will be notified that they will be automatically enrolled in the Long Term Disability Plan with coverage effective Jan. 1. Employees who want to opt out of this plan must notify the Benefits Division in writing by Nov. 19. The purpose of this action is to provide important continuation of University income to employees who are unable to work due to total disability. This action is not applicable to individuals who had previously waived coverage. Based on projected plan costs for 2005, monthly premiums are increasing from 10 cents to 15 cents per $100 of coverage both for participating employees and the University which contributes equally to the employee’s contribution. The average premium increase will be approximately $3 per month.

• Prescription Plan Changes. Prescription drug mail order co-payment amounts for PPO, Aetna HMO and HMO Illinois members are increasing by $5. Retail co-payments will remain the same. The maximum annual out-of-pocket amount members in these three health plans will be charged in co-payments will increase from $1,000 to $1,250. Co-payment changes will moderate health plan premium increases, represent a small fraction of the overall cost and offer plan features that are competitive with other employer sponsored health plans.

• Flexible Spending Account (FSA) Health Care Account Pledge Amount Increase. The maximum monthly and annual pledge amounts an employee may contribute to the FSA Health Care Account will increase from $550 to $583.33 per month and from $6,600 to $7,000 per year. This change reflects increasing out-of-pocket health related expenditures and the eligibility for reimbursement of over-the-counter medications. Based on Internal Revenue Service (IRS) regulation, the maximum annual amount an employee may contribute to the FSA Dependent Care Account will remain unchanged for 2005 at $5,000. The dependent care University match also will remain unchanged. Contributions to the FSA Plans provide tax savings. (The deadline for submitting completed claims forms for reimbursement from FSA Accounts for service received during calendar year 2004 is the end of February 2005. Any account balance as of March 1, 2005 is forfeited.)

• Decreased premiums and new plan sponsor for the Accidental Death and Dismemberment Plan. Monthly premiums for the Accidental Death and Dismemberment Plan will decrease beginning with December 2004 paychecks. Reliance Standard Life Insurance Company will replace CNA/The Hartford.

Decisions made during Open Enrollment are generally binding for the entire year. An individual cannot make any changes until next year’s Open Enrollment period unless he or she has an approved change in family or employment status, such as marriage, birth adoption or death, and submits a completed enrollment form to the Benefits Division within 31 days of such a change.

Enrollment forms are included in the 2005 Open Enrollment booklet that will be sent to all benefits-eligible faculty and staff. Enrollment forms may also be downloaded from the Benefits Division’s Open Enrollment Web site shown at the end of this story.

To change benefit selections, or to re-enroll in the Flexible Spending Account (FSA) Plan, forms must be received by the Benefits Division or by the Chicago campus Human Resources office by 5 p.m. Nov. 19.

Employees may obtain further information on these and other changes for 2005 through the Open Enrollment Web site at www.northwestern.edu/hr/benefits/news/openrollment as well as the 2005 Benefits Open Enrollment booklet.