Open enrollment period begins

By Judy Moore

Open Enrollment for 2003 benefit programs begins Monday (Oct. 21) and continues through Nov. 15.

It 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.

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.

Major benefit plan changes for 2003 include new childcare initiatives; new Flexible Spending Account (FSA) Dependent Care Account employer match rates and amounts; an opportunity to enroll in the Long-Term Care insurance plan; new co-payment amounts for health plan members; new health and dental plan premiums; and new salary brackets for the payment of Plan A (Blue Cross PPO) premiums.

Detailed information on the upcoming changes will be provided in the booklet that will be sent to benefits-eligible faculty and staff. Following are highlights of these changes:

The University will launch a major new initiative to improve childcare based on recommendations made by a campus-wide childcare committee. The initiative includes increased financial support for faculty, staff and students who have childcare needs; a new partnership with the McGaw YMCA Child Care Center in Evanston as the preferred childcare provider for the University to expand childcare and preschool services to meet the needs of Northwestern’s families; and a collaboration with the Childcare Network of Evanston to develop flexible alternatives for childcare.

Northwestern has allocated $50,000 in 2002-03 University funds for financial aid for families to use the YMCA’s childcare center. The financial assistance will be based on household income and will be administered by the financial assistance office of the YMCA.

The University will provide $30,000 in funding for 2002-03 for enhancements to the programs offered at the YMCA. The funding will be used to support programs in areas such as music, drama, literature, child assessment and behavior.

• Effective Jan. 1, Northwestern will increase its contribution to the Dependent Care Flexible Savings Account (FSA) for faculty and staff in three ways. Here are the details:

Increased income limits. More faculty and staff will be able to qualify for matching funds through a raising of the earnings qualifications. Employees with annual family incomes up to $50,000 qualify for the highest match in 2003, an increase from $40,000 in 2002. Matching funds are available to employees with family incomes up to $80,000, an increase from $70,000.

Increased matching rate. The rate of the match for those earning up to $50,000 will be $1.50 from the University for each $1 contributed by the individual, an increase from the current dollar-for-dollar match. Those with family earnings from $50,001 to $60,000 will receive $1 for each $1 contributed; while those from $60,001 to $80,000 are eligible to receive 75 cents from the University for each $1 contributed.

Increased total match. The maximum annual amount that can be pledged to the FSA Dependent Care Account, inclusive of employee and matching University funds, is $5,000.

Depending on total annual family income, there are University matching funds available for childcare expenses. Those with family earnings up to $50,000 can pledge a total of $5,000 to the Dependent Care FSA Account during the year and receive $3,000 from the University. Those with family earnings between $50,001 and $60,000 can pledge a total of $5,000 and receive $2,000 of the $5,000 total pledge amount from the University; and those with family earnings between $60,001 and $80,000 can pledge a total of $5,000 and receive $1,500 of the total $5,000 pledge amount from the University. Employees who qualify for matching contributions and choose a total annual pledge amount less than $5,000 will receive University matching funds according to the matching schedule. Interested individuals should contact the Benefits Division for assistance in calculating annual pledge and matching amounts.

The $5,000 combination of University matching funds and the employee’s personal funds complies with Internal Revenue Service rules to exclude these contributions from taxation.

Other highlights include:

• Long-Term Care Insurance Plan. During Open Enrollment, the University is making available group sponsored (employer sponsored) long-term care insurance for purchase through payroll deduction. Benefits eligible faculty and staff may purchase long term care insurance for themselves or their spouse. In addition, their parents and parents-in-law, as well as retired University faculty and staff, may purchase long-term care insurance directly with the sponsoring insurance company. The University has selected the Continental Casualty Company (CNA) as the insurance company sponsoring this new plan.

For more information on the new 2003 long-term care program including premium rates or to order an information and enrollment kit, call CNA’s customer service at 1-800-528-4852 or visit www.LTCBenefits.com and enter the password, NWUN.

• Health: There will be new salary brackets for the payment of Plan A (Blue Cross PPO) premiums; new monthly premium rates; new physician office visit co-payment of $15 for health plan members; new prescription drug copayment amounts for health plan members; new emergency room visit co-payment amount of $50 for PPO and Humana plan members; a new outpatient services deductible of $250 for PPO plan members; and new out-of-pocket expense limit of $2,000 for PPO plan members.

• Dental: There will be higher monthly premium rates based on projected claims costs for 2003.

• Prescription Drug Programs: The University is again offering the stop-loss provision during calendar year 2003 to protect against possible catastrophic loss due to prescription needs for the prescription plans administered by AdvancePCS (Plan A and HMO Illinois). Co-payments will increase in 2003 to the rates shown in the table viewable on the benefits division Web site. A patient will not have to pay more than $1,000 in prescription copayments in 2003. Co-payments exceeding $1,000 are possible for serious medical conditions and have occurred among a number of University health plan members. This provision parallels the stop-loss for other health care services in Plan A.

Individuals who do not submit a re-enrollment form by the end of the Open Enrollment period will not be able to continue participating in the Flexible Spending Account (FSA) Health Care and or Dependent Care Accounts for 2003 unless they have a qualifying change in family or employment status and submit an enrollment form to the benefits division within 31 days from the date of the qualifying change. An invoice from a care provider with a tax identification number enables the individual to claim a reimbursement from the FSA.

There are no changes in monthly contribution rates for short-term disability, long-term disability, optional term life insurance, accidental death and dismemberment or the retirement plan.

Enrollment forms are included in the Open Enrollment booklet that will be sent to all benefits-eligible faculty and staff. Enrollment forms can also be downloaded from the benefits Web site.

To change selections, or to re-enroll in the Flexible Spend-ing Account Plan, forms must be received by Nov. 15.

Information on these and other changes for 2003 is available at www.northwestern.edu /hr/benefits/spec-ann/open-enrollment/index_2002.html.