Medical insurance costs have risen so dramatically, having doubled in the past five years, that the University can no longer absorb the increases and provide the same level of quality and choice, according to Human Resources and Affirmative Action officials.

To maintain current medical insurance options, beginning in January 2004, many retirees (as well as active faculty and staff) will begin paying a small portion of their monthly medical insurance premium. This is known as “premium-sharing,” in which the employee, retiree or surviving spouse shares the costs with the University.

Which retirees are affected? Only retirees or surviving spouses of a retiree with a retirement date on or after Jan. 1, 1987, will be affected by premium sharing. Retirees with a retirement date prior to Jan. 1, 1987, will not be subject to premium sharing for 2004.

How much will retirees pay? While the amount each retiree is responsible for will depend on the plan and coverage level chosen, the majority of retirees will pay 5 percent of their monthly medical care premium, with the University paying the remainder—as much as 95 percent.

Please note: Retirees who were hired on or after July 1, 1988, and are younger than 62, still are required to pay 100 percent of their medical care premium until the first month after turning 62.

How can retirees or surviving spouses pay their premiums? Retirees may pay with a personal check or money order for the entire year, for a six-month period or on a monthly basis.

As a second option, retirees can choose Electronic Funds Transfer and have the monthly premium amount automatically withdrawn from an account of their choosing. As a third option, retirees can designate someone other than themselves to handle their premium payments and receive payment information.

More details will be in retirees’ Open Enrollment workbooks, which will be mailed at the end of September. For further questions, retirees and surviving spouses can contact the HR/Payroll Service Center at (734) 615-2000 or (866) 647-7657 (toll-free).