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June 2012 Benefits 2012/2013 - - An HR Liaison Presentation Employee Benefits Manager A&M System Office Ellen Gerescher.

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Presentation on theme: "June 2012 Benefits 2012/2013 - - An HR Liaison Presentation Employee Benefits Manager A&M System Office Ellen Gerescher."— Presentation transcript:

1 June 2012 Benefits 2012/ An HR Liaison Presentation Employee Benefits Manager A&M System Office Ellen Gerescher

2 Contract Renewals The System Benefits Office administers the System benefit plans and has fiduciary responsibility for sound management of the premium resources Renewed contracts with both BlueCross BlueShield and Medco will result in significant savings –Lower administrative fees, greater network discount savings 2

3 Benefit Changes for Tobacco User Additional Premium Consolidation of Health plans Dependent Audit 3

4 What constitutes a tobacco user? This can be defined many different ways. The A&M System will follow the standard used by the ERS in order to be consistent with other State entities. A tobacco user is someone who has utilized tobacco more than five times in the previous three months. 4

5 Two Years of Changes Changes for –Merged two A&M Care plans into one plan Changes for –Merging the Scott & White Health Plan into the A&M Care Plan 5

6 Behind the Consolidation Larger, single risk pool eliminates selection bias and adverse selection –SWHP enrollment has decreased over the past several years –Costs have increased Members aged Costs for doctors outside the clinic increased –Plan design continued to mirror that of the A&M Care plan 6

7 Transitioning from Scott & White While plan choice may be gone ---- physician choice remains Decrease in monthly premiums Virtually all S&W doctors are in the BlueCross BlueShield network –BCBS phone number for Scott & White members with questions:

8 Transitioning (cont.) The Scott & White pharmacies are in the Medco network Medco website for information about coverage for specific drugs: e/openenrollment?accessCode=TAMRXB EN

9 New for the A&M Care Plan Starting August 1, your A&M UIN will be your BlueCross BlueShield ID Number, beginning with TXW (for employees) and ZGB (for retirees) – all existing members will get new ID cards Benefits Value Advisor – service that helps employees by locating providers, providing cost estimates, scheduling procedures, etc. 9

10 New for the Grad Plan Expanded to be compliant with Federal Healthcare reform –No plan-year maximum for drug coverage –Preventive care provided at 100% –No pre-existing coverage limitation for members under age 19 10

11 Dependent Audit Approximately 10,000 employees with dependent medical coverage audited Approximately 750 dependents dropped; however many dropped voluntarily Audit continues for those with dependents on dental, vision and dependent life only 11

12 Thank You! Ellen Gerescher System Benefits Administration


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