TTU HR News
Plan design and rates set for PY 2013
The ERS Board of Trustees approved contribution rates for benefit plans under the Texas Employees Group Benefits Program (GBP) for Fiscal Year 2013 at their May 22, 2012 meeting. The Board did not have to make any plan design changes to the HealthSelectSMof Texas plan for Plan Year 2013.
The new rates take effect on September 1, 2012. HealthSelect rates will increase 7.36%. Employers, such as the State of Texas, pick up most of the cost of the increase since qualified employees and retirees currently do not pay an insurance contribution for their own coverage. Individuals who cover family members in HealthSelect will see increases ranging from $12 to $31 per month depending on their coverage level. The rate increase is in line with the legislative appropriations set for the program in 2011.
Increased drug costs and usage are driving the rate increases. Fortunately, the plan is able to use savings from the new HealthSelect third party administrative contract, the recent dependent eligibility audit, and subsidies from the federal government for certain retiree health expenses to offset the increase. Without these savings, the plan would have had to cut benefits.
Rates will decrease 10% for Optional Term Life coverage. Fiscal year 2013 monthly rates for dental, Basic Term Life, Dependent Term Life, Voluntary Accidental Death and Dismemberment, and Long- and Short-term Disability coverage were approved with no increases.
Fiscal Year 2013 approved contribution rates are here.