DEPARTMENT OF MANAGEMENT SERVICES



University Open Enrollment IT & Benefits Conference Call Minutes

| | |

|Date |July 28, 2010 |

|Time |3:30 p.m. to 5:30 p.m. |

|Location |Tallahassee, Florida |

|Facilitator |Jimmy Cox |

|Note Taker |Verla Lawson |

|Attendees |Florida Atlantic University, Florida State University, Florida A & M University, University |

| |of Florida, University of Central Florida, University of West Florida, University of South |

| |Florida, University of North Florida, New College, Florida International University, Florida |

| |Gulf Coast University, Jimmy Cox, Mike Waller, David DiSalvo, Shelby Jefferson, James West, |

| |Keith Young, Carol Broome, Northgate-Arinso IT staff and Verla Lawson |

| | |

OPENING AND INTRODUCTIONS

Verla Lawson opened the meeting and introduced the Department of Management Services (DMS) team and the Northgate-Arinso (NGA) IT team.

Summary of Changes for 2011 Plan Year

Debit Card

Effective with the 2011 plan year, those employees enrolled in a Medical Reimbursement Account will receive a Debit Card. Employees will be able to use the card to pay for eligible health care expenses such as: prescription drugs, co-payments for medical, dental or vision services, etc... Employees will still be able to file by manually if they choose. Use of the Debit Card is not mandatory. As we get closer to open enrollment for the 2011 plan year, additional information on the new myMRA Debit Card will be provided.

Company Name Changes

Effective immediately, the following companies will have a new name. VISTA will now be known as Coventry Health Plan and Philadelphia American Life Insurance Company (PALIC) name will change to New Era an “Affiliate of PALIC”. These changes will result in new plan codes to ensure the integrity of the historical records. The new plan codes will be provided as part of the SUS workbook updates. In the People First system these changes will be date effective with the 2011 plan year.

Rate Changes

As soon as all rates are finalized by the Division of State Group Insurance, we will provide you with an update. Rates will be provided in the updated SUS workbook.

HMO Coverage Area

Capital Health Plan has added Calhoun and Liberty counties to their service area. No other HMO coverage area changes are known at this time.

Colonial Insurance Changes

Effective January 1, 2011 Colonial will no long enroll employees into plan codes 6600 and 7500. Current enrollees will remain in the plan, but may not make changes to these plans. Any change will result in the termination of the 6600 or 7500 plan and activation of the new Colonial plan code of 6601. There will be no underwriting requirement for this new Colonial plan. With this product, they will offer employee and employee plus family options.

Life Insurance

The current basic life insurance policy will end December 31, 2010. The new basic life insurance policy will go into effect January 1, 2011. All employees no matter what classification or position title will only have a maximum of $25,000 of state life insurance coverage. Employees will not have to contribute towards this policy. Each employer is responsible for paying the full premium. The cost per employee will be provided as part of the SUS workbook updates. All full time employees will automatically be enrolled into the $25,000 policy. The new plan is not reduced at age 70.

All part-time employees who are currently enrolled in basic life insurance will automatically be enrolled in the new plan. Part-time employees who are not currently enrolled in the basic life insurance plan will not be automatically enrolled in the new plan. Part-time employees will be responsible for a portion of the premium in correlation to their FTE (e.g., a part-time employee with an FTE of 0.50 will be responsible for paying ½ of the cost for the plan).

All employees will be able to change their elections for this plan during the 2011 plan year open enrollment period.

Question: How will new hires beginning in October 2010 get processed?

Answer: If an employee hired in October chooses a November 1, 2010 effective date, they will be enrolled in the current life insurance plan with all the current rules applied (e.g., 1.5 or 2.0 times their annual salary). Simultaneously, in December for January 2011 coverage, their coverage will automatically be converted to $25,000 basic life.

Question: How will the change transmit on the 002 File?

Answer: Northgate will continue to transmit existing codes. The change will occur on the back end by Northgate.

Question: Will Universities receive the same plan code for basic life? Will there be a file terminating current policy and will it show a new enrollment with for the $25,000?

Answer: The current proposed recommendation is not to terminate the existing policy but change the amount to reflect the $25,000. This process is currently under review and we will update you on this issue as soon as the resolution is confirmed.

Question: How will part-time employees be notified of the change in premium?

Answer: The Division of State Group Insurance (DSGI) will distribute a Newsletter in the beginning of September. Additionally, the Benefits Guide will have a summary of changes that will include information about this change.

Optional Life

➢ The current $500,000 maximum benefit has been changed to $1 million.

➢ The tier level has been increased from a maximum of 5 times salary to 7 times salary.

➢ If an employee elects an optional life insurance election that will either change their elections to 6 or 7 times salary, or change their policy amount to an amount between $500,000 and $1 million, medical underwriting is required. Any election change to 6 or 7 times salary will require medical underwriting. Any tier change (1 – 7) that results in a policy value between $500,000 and $1 million will require medical underwriting.

➢ Employees whose current optional life insurance tier election times their salary is greater than $500,000, will remain capped at $500,000. To receive the higher policy value the individuals must clear medical underwriting.

➢ Current employees who are not currently enrolled in optional life insurance will be able to enroll in optional life insurance for one multiple during the 2011 plan year open enrollment without having to go through the medical underwriting requirements. However, if they choose to enroll in a multiple greater than one they will receive guaranteed issue for one multiple and will have to clear medical underwriting for the additional requested coverage.

➢ Employee currently enrolled optional life insurance who wish to change their multiple by more than one tier, will receive guaranteed issue for one multiple up (as long as one multiple does not increase their multiple to 6 or 7 times salary and does not take their policy over $500,000) and will have to clear medical underwriting for the additional requested coverage.

➢ Salary changes will not result in required medical underwriting, as long as the individual does not process a tier change in conjunction with the salary change.

➢ The optional life insurance values on the BNO_002 will be changed as follows: 1 – 7 will be used for employees who are enrolled in optional life insurance and whose policy value does not have a cap applied. A – G will be used when employees are enrolled in optional life insurance and their policy has the $500,000 cap applied.

The following are some examples for Optional Life Insurance to help clarify how the changes will be applied:

Example 1: Employee making $25,000 a year:        

• No current Optional coverage - request 1x.  Should get this on a Guaranteed Issue (GI) basis. Note - applies to this Open Enrollment Only.

• No current Optional coverage - request 3x.  Needs Underwriting.  Is declined by underwriting - should get 1x as this is offered on a GI basis. Note – applies only during Open Enrollment.

• No current Optional coverage - request 3x. Needs Underwriting.   Is approved - should get 3x.

• Currently has 1x Optional - requests 2x.  Should get on 2x on a GI basis.

• Currently has 1x Optional - requests 3x.  Needs Underwriting.  Declined by underwriting - should get 2x as this is offered on a GI basis.

• Currently has 1x Optional - requests 3x.  Needs Underwriting.  Approved by underwriting - should get 3x.

• Currently has 5x Optional - requests 6x.  Needs to go thru underwriting because this is over the GI limit.  If approved - 6x.  If declined - remains at 5x.

• New hire - request 1-5x.  Gets on a GI basis.  Requests 6x or 7x - requires underwriting.

Employee making $90,000 a year:

• No current Optional coverage - request 1x.  Should get this on a Guaranteed Issue (GI) basis. Note - applies to this Open Enrollment Only.

• No current Optional coverage - request 3x.  Needs Underwriting. Is declined by underwriting - should get 1x as this is offered on a GI basis. Note – Applies only during Open Enrollment.

• No current Optional coverage - request 3x.  Needs Underwriting. Is approved - should get 3x.

• Currently has 1x Optional - requests 2x.  Should get on 2x on a GI basis.

• Currently has 1x Optional - requests 3x.  Needs Underwriting. Declined by underwriting - should get 2x as this is offered on a GI basis.

• Currently has 1x Optional - requests 3x.  Needs Underwriting. Approved by underwriting - should get 3x.

• Currently has 5x Optional - requests 6x.  Needs to go thru underwriting because this is over the GI limit.  If approved - 6x.  If declined - remains at 5x.

• New hire - request 1-5 x.  Gets on a GI basis.  Requests 6x or 7x - requires underwriting.

Employee making $140,000 a year:

• No current Optional coverage - request 1x.  Should get this on a Guaranteed Issue (GI) basis.  Note - applies to this Open Enrollment Only.

• No current Optional coverage - request 3x.  Needs Underwriting.  Is declined by underwriting - should get 1x as this is offered on a GI basis. Note – Applies only during Open Enrollment.

• No current Optional coverage - request 3x.  Is approved - should get 3x.

• Currently has 1x Optional - requests 2x.  Should get on 2x on a GI basis.

• Currently has 1x Optional - requests 3x.  Needs Underwriting.  Declined by underwriting - should get 2x as this is offered on a GI basis.

• Currently has 1x Optional - requests 3x.  Approved by underwriting - should get 3x.

• Currently has 3x Optional - requests 4x.  Has to go thru underwriting for the increased amount because the new total is over $500,000.  Current amount = $420,000.  Requested amount $560,000.  If approved, gets 4x at $560,000.  If declined, should be allowed to move up to the GI limit of $500,000 but should have an indicator that amount is capped at the GI limit versus having a "true" multiple of salary.

• Currently has 4x salary but amount is capped at $500,000 due to current plan maximum. Requests 4x (to get a true 4x salary) or 5x.  Need Underwriting.  If approved, gets new multiple. If declined, remains at capped $500,000 and should have an indicator on file that amounts is capped versus a true multiple of salary.

• New hire - requests 1-3x.  Gets on a GI basis.  Requests 4x requires underwriting.  If approved, gets 4x. If declined, should get capped at $500,000 and have an indicator that amount is capped.

Question: Were there any changes to Retiree life insurance?

Answer: No, there have been no changes.

Question: What will happen to the face value of the policies of those former employees who have been approved for waiver of premium for their life insurance?

Answer: Those employees who have been approved for life waiver of premium will retain their current face value for their life insurance.

Additional Open Enrollment Information

➢ The snapshot for Open Enrollment will be taken September 9, 2010. University files will be loaded before the snapshot is taken.

➢ Benefit Statements are scheduled to be mailed September 13th to September 24th.

➢ Open enrollment key dates document will be provided in the near future.

➢ Open enrollment will begin September 27th and end October 22nd.

➢ The mailing priority sequence is as follows: Temporary, mailing, then home address. If there is no temporary address, the system checks for a mailing address. If there is no temporary or mailing address, the system uses the home address.

➢ The 2010-11 payroll schedules will be distributed by the end of August.

➢ Dependent requirements have changed. Your child can remain on your coverage until the end of the calendar year in which they turn age 26.

Question: The University of West Florida asked if DMS & Northgate would provide a walk through for returning faculty. There is a concern with terminations which shouldn’t take place.

Answer: DMS will coordinate a date and time with Northgate and Verla will send a meeting invitation to everyone.

Question: Florida State University asked if they can send a BNI 123 file on the third pay day in this month.

Answer: Northgate will be able to process another BNI 123 file on the third pay day in July.

Closing

DMS closed the meeting by thanking everyone for participating on the call and asked them to please continue to let us know when they experience problems.

TAKEAWAYS

➢ DMS/NGA will provide the updated SUS workbook, including the new plan codes and rate changes.

➢ DMS will provide the Open enrollment key dates document.

➢ DMS will provide the 2010-11 payroll schedules.

➢ DMS will coordinate a date and time with NGA to do a walk through for returning faculty.

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