To preserve the quality of medical benefits as well as individual choice of plans and coverage levels, it is essential that nearly all faculty, staff and retirees begin to contribute a modest share of their monthly medical insurance premiums.

Why? Over the past five years, the University’s medical insurance costs have doubled. Through no small effort, the University has absorbed these 14-17 percent annual increases. Continuing to absorb the increases is not possible without diminishing the benefits offered. To maintain current options and high-quality plans, premium sharing—in which faculty, staff and retirees pay a little and the University pays a lot—is the best solution.

How much? Just 5 percent, for most employees. Additionally, active faculty and staff can choose to pay co-premiums on a pre-tax basis, so its impact on take-home pay is lessened. Beginning in January 2004, those electing single or two-person coverage will begin paying a minimum of 5 percent of the total monthly premiums (some plans and coverage levels will require greater co-premium amounts). The University still is paying for the vast majority, up to 95 percent, of medical premium costs.

Detailed co-premium rate charts for the each medical plan and coverage level are available on the Benefits Web site now, and will be included in the Open Enrollment book, which will be mailed later this month. Recipients should review the plan and rate information carefully to make informed choices of plans during Open Enrollment, Oct. 1-24.

For more Open Enrollment information, visit the Benefits Office Web site at http://www.umich.edu/~benefits/ , call the Human Resources AnswerLine at (734) 647-2375 and select category 6150 to access the Benefits AnswerLine, or e-mail the Benefits Office staff at benefits.office@umich.edu.

Consult with HR/Payroll Service Center staff at 5-2000 (campus), (734) 615-2000 (local off-campus), or (866) 647-7657 (toll-free for off-campus, long-distance).