This message is intended for benefits eligible employees
In preparation for the 2024 Open Enrollment season, Human Resources evaluated employee surveys and worked in close partnership with the University’s Benefits Committee and our brokers to develop a competitive health and wellness package that meets your benefits needs and mitigates the rising cost of healthcare. We are writing to inform you of the changes, to provide ample time to plan for the Open Enrollment period, November 7, 2023 through November 27, 2023, and outline the ways in which we will support employees in choosing the best options for individual and family needs.
Over the past year, the healthcare market has experienced a return to preventative care, while also realizing volatility in claims, as Americans have pursued medical needs delayed by COVID. This reality has led to some of the largest increases to employer healthcare costs in decades. The projected renewal rates for SCU healthcare plans are similarly impacted by national trends.
Medical Care
As a result of the volatile medical renewal rates, the University solicited bids from multiple medical providers, with the goal of continuing to provide two healthcare carrier options for our employees, while offering the same quality of care and limiting cost increases. The University has elected to maintain Kaiser Permanente, and replace Blue Shield with Aetna as the additional medical option for benefits-eligible employees.
Here are some important points to understand about these changes. The transition from Blue Shield to Aetna provides a significantly lower cost increase, compared to the renewal rates offered by Blue Shield, for employees.
This decision would not have been made without first analyzing the projected employee impact regarding whether the providers utilized by University employees and their dependents are currently in-network with Aetna. The analysis found limited disruption, with 92% of the providers utilized by Trio enrollees remaining in-network for the comparable Aetna plan. That percentage grows to 97% for Access+ and close to 100% for the PPO plan.
Nevertheless, we recognize that some of you will lose access to preferred providers in your current plan and that can be especially stressful. In some situations, you may continue treatment with your out-of-network provider for a limited time under Aetna’s “transition of care” provision.
If you currently have Blue Shield, we encourage you to review the FAQs for information on how to determine whether your current providers are in-network with Aetna, and for more information about this process.
Dental Care
The University reviewed competitive bids from multiple dental insurance administrators in response to employee concerns regarding the shrinking network and limited coverage of Delta Dental. In 2024, the University will be transitioning to Guardian as our dental administrator. An analysis of dental providers used by SCU enrollees found that a larger number were in-network with Guardian compared to the Delta PPO network. Enrollees will have access to Guardian Anytime, a convenient way to access benefits online, anytime and anywhere.
Premiums and Cost Sharing
We understand any premium cost increases are a challenge for employees. The University has absorbed premium cost increases for the past 2 years. We are unable to absorb all of the cost increases for a third consecutive year, but have worked to minimize the impact as much as possible. We will maintain our traditional cost share model for all medical plans and tiers, with the University paying 79% to 98% of medical premiums (dependent upon the plan selected and number of family members covered).
Consequently, employees currently enrolled in a medical plan will see an increase in their paycheck deductions for the same or comparable plan in 2024. Dental enrollees covering one or more family members will also see a slight increase; the University will continue to pay 100% of the cost of employee-only coverage.
Additionally, we created more stability and predictability by starting the first year with Aetna at a lower cost increase, followed by a rate cap for 2025. The 2024 healthcare rates can be found here.
Next Steps
The benefit plan changes will be effective January 1, 2024. The Benefits Open Enrollment period for 2024 is scheduled from November 7 and November 27 via Workday. We want you to make the most informed decision for you and your family. In a sense, this will be an "active enrollment", as we are asking all benefits-eligible employees to review their healthcare options and make a benefits enrollment election that best meets their needs. If you plan to opt out of any current benefits, you must waive them in Workday.
To assist all of our benefits- eligible employees and to help facilitate the benefit plan transition, we will hold a number of hybrid sessions with our vendors, host our annual Health & Wellness Expo on November 7, set up one-on-one consultations for you to meet with a member of our benefits team, provide weekly email updates, as well as launch an open enrollment website with up-to-date information.
More detailed information regarding the 2024 Benefits Open Enrollment updates and supporting information sessions will be shared by our Benefits Team in the coming days. Should you have any questions, please feel free to email us at scu-benefits@scu.edu.
Thank you,
Zenobia S. Lane
Vice President, Human Resources