Changes in Cornell's health care benefits are minimal for 2003, and endowed health care rate increases are not as sharp as initially projected or as large as some of the university's peer institutions have experienced, according to Mary George Opperman, vice president for human resources.
"While the average national increases in health care costs continue to outpace inflation, especially in the skyrocketing costs of prescription drugs, the changes that we made in the prescription drug program last year -- coupled with the growing awareness that Cornell staff and faculty have shown in using the provisions of our health plans -- have helped keep our increases lower than what others are experiencing," Opperman said.
Cornell will continue to cover 90 percent of the cost of an individual plan and 75 percent of the cost of a family plan for both the endowed plans and the New York State Health Insurance Plan (NYSHIP) for state contract college employees.
"That means that the university will continue to absorb the bulk of the cost increases in real dollars," Opperman said.
According to a national survey conducted by consulting firm Towers Perrin, employers reported double-digit increases in actual health-care costs for the third year in a row.
Further, virtually all respondents expect another double-digit increase in costs in 2003. And a large majority of respondents, 88 percent, believe the double-digit increases may continue for several more years. As a result, this year many employers are asking employees to share in the cost increases through higher deductibles, co-payments, and/or monthly contributions. For the coming plan year, Cornell has maintained the same deductible levels and cost-sharing ratios as in the current year.
Cornell's annual benefits enrollment period for faculty and staff will run Nov. 11 through Dec. 6. During that period, endowed faculty and staff will have the opportunity to enroll in, change, or drop their enrollment in one of Cornell's three endowed health care plans: HealthNow, Aetna Open Choice and the 80/20 Plan.
The annual enrollment period also provides the opportunity to enroll in the endowed dental plan. "This plan has grown about 22 percent in participation over the past two years," said Paul Bursic, director of benefit services. "This year the plan is even more attractive: We have kept the premiums the same as last year's, and we have a reduced annual deductible." Other enhanced features may also reduce potential costs to the participant.
Both contract college and endowed faculty and staff also may enroll in the Select Benefits Medical Care and Dependent Care Reimbursement accounts. These accounts allow employees to set aside funds on a pre-tax basis to use for certain medical care and dependent care (such as child care) expenses throughout the year. The enrollment period for dependent care runs through Dec. 6. Because the health-care rates for contract college staff and faculty are not released by the state of New York until late November, endowed and contract college staff and faculty may enroll in the 2003 Select Benefits Medical Care Reimbursement Account through Dec. 26.
New rates for all health plan options and details explaining the decisions that faculty and staff need to make will be outlined in the benefits-enrollment home mailing that is being sent out in early November. (See chart below.)
Both HealthNow and the Aetna Open Choice plans are managed-care plans. In both, each time a participant seeks care, the participant can choose to use either physicians who are in the plan network or physicians who are not in the network. In both, the participant and the university get a cost break when in-network health-care providers are used. In the 80/20 Plan, there are no networks of providers with negotiated rates, so neither the participant nor the university realizes any savings. The role of the primary-care physician and the differences in national provider networks are the two key differences between HealthNow and Aetna Open Choice. (Read an overview comparison of the three endowed plans.)
For the second year, the Office of Human Resources (OHR) is providing an on-line process, eOpen Enroll, for contract college and endowed staff and faculty to enroll in Select Benefits. Endowed employees may also enroll in, change, or drop their health and dental coverage using eOpen Enroll. Last year, about 50 percent of those who changed their benefits used eOpen Enroll. That online process will be activated the morning the enrollment period begins, Nov. 11, and can be accessed through the Employee Essentials button on the OHR web site, www.ohr.cornell.edu.
The annual Open Enrollment BeneFair will be Nov. 13 at the Statler Ballroom, 8 a.m.-2 p.m., with benefits staff and vendors on hand to answer any questions. Faculty and staff are also encouraged to call Benefit Services, 255-3936; e-mail benefits@cornell.edu or access the OHR web site above for more information.
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