2008 Open Enrollment

Re: 2008 Open Enrollment – effective June 1, 2008. No plan design or provider changes for 2008.  No rate changes for active members; rate changes for Retirees. If no changes are made or needed, you will default to your current medical plan, with dental and vision included.

 

Please accept this letter as your reminder that during the month of May, 2008 we will conduct OPEN ENROLLMENT for the FOP Health Insurance.  We will continue to offer both CHOICE/EPO and an OPTIONS PPO plan through United HealthCare for MEDICAL benefits; inclusive of coverage for DENTAL and VISION.

 

Over the last several years, our HealthTrust has achieved success in overcoming significant financial obstacles.  We are fiscally sound and operating with a positive cash balance.  We continue to carefully review all our options concerning medical, dental and vision benefit design, changes and rates.  Your board continues to establish rates, benefits, and plan design based on “industry” standards, actuarially based information and our commitment to our fraternal responsibility.  We will continue to establish baseline member contribution percentages and document a consistent and fair strategy for future decisions.

 

For 2008, The Board unanimously voted to remain with United HealthCare. United has provided excellent service to our members, offers very competitive rates, discounts and a large national provider network All three plans, (medical, dental and vision) will remain self-insured.  Your contributions directly pay the claims.  We do not buy insurance from United Healthcare.  They provide services to pay our providers and access to highly discounted networks to save our plan money.   It is the responsibility of all members in our plan to be an educated, informed consumer of our benefits.

 

As some of you are probably aware, board members are attending each of the 40-hour Block sessions this year to discuss all of these issues personally with each of you and introduce our new Wellness program.  Ask one of your board members about taking the Health Risk Assessment (HRA) on myhc.com to earn $25 or $50 gift card if you have a participating spouse in the plan!  For your convenience you will also find enclosed the directions on how to access and take this Health assessment that is directed at allowing the board to develop programs to improve the health of our members and control plan costs.  The responses are totally CONFIDENTIAL and the no one has access to specific member’s information.  Reports are provided by United at the completion of the assessments by our members on a group basis. 

 

This year we will not be making any plan changes.  This decision was based primarily on our efforts to hold costs whenever possible.  We recognize that as of this writing, contractual issues loom large and everyone is experiencing cost increases in living in so many other areas of their lives.  There will be no employee cost increases for active employees.  However, there will be some cost increases for retirees.  It has been our policy to maintain retiree contributions at a percentage of the premium equivalent (actual cost of the plan if we were fully insured).  This percentage is not the total cost of insurance.  Taken into consideration is the fact that retirees do receive $300 or $400 from the City for Health Insurance until age 65.

 

The most challenging aspect of every years plan design relates to costs to our members.  While we are operating with a positive cash balance, we are certain that health care costs will continue to escalate.  We incurred approximately $1,000,000.00 more in paid claims in 2007 than 2006.  We will continue to work to build a sufficient claims reserve for those times when costs may exceed contributions and to ensure this plan’s long term stability.  We will continue to use all the actuarial information provided by United HealthCare, our consultants and our stop-loss carrier to make decisions based on facts and our actual trends.

 

It is our goal to ensure that each member, whether active or retired, contributes their fair share to the plan.  As plan members, we recognize a fraternal obligation to provide the highest level of benefits to all members at the lowest cost.  Since no rate changes were made to the Active Employee group, you will notice that our groups rate tier selection (i.e. EMP only, EMP +1, EMP +2>) remains the same for active members.  However, a fourth tier was added to both retiree groups.  The addition of this tier will ensure that retirees with a spouse or children or both will be classified more accurately and their rates will accurately reflect their family structure and costs to our plan.

 

June 1, 2008 rates are shown below.

 

FOP Health Trust rates as of 6/1/08
	Medical,  Dental,  Vision
Active Employee – BI-WEEKLY rate – NO CHANGE
		EPO/Choice		Options PPO
Coverage		Current		Current
Employee		41		62
Employee +1		113		150
Employee +2>		140		190
Fully vested Retiree < 65 – MONTHLY rate
			New		New
Employee		400	415	450	480
Employee/Spouse		695	720	735	835
Employee /Children		695	665	735	770
Family		780	835	900	960
		Retirees >65	With dependents > 65
Employee		210	225	225	265
Employee/Spouse		445	475	500	530
		Retirees >65	With dependents <65
Employee		210	225	250	265
Employee/Spouse		445	530	500	620
Employee/Children		445	475	500	555
Family		445	785	500	905

 

New rates for the Fully Vested Retiree >65 with dependents under 65, will not take effect until July 1, 2008 as this group reflects the most significant change and correction to align with your boards current policy.  Rates for COBRA, and persons who leave the city that are not fully vested, but qualify to remain in our plan at the full rate are available at the Health Trust office.

 

During open enrollment, employees may make changes to their current medical plan option.  If dependents are added, their eligibility will need verification (i.e., copies of marriage and birth certificates. If you wish to make ANY changes in your plan selection, for example, move from the CHOICE/EPO to the Options PPO, add, change or delete dependents), you MUST complete a new enrollment form and return it to the FOP Health Trust Office by May 31, 2008.

 

If you have questions, please contact any board member or Barbara Stanley, Benefits Manager. Board members can be found on our FOP website www.fop31.org.