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Favorable Rate Actions
Medical
This is the fourth year in a row that the Trust has been able to keep its rate increase lower than the industry average. The overall increase for medical rates will average 8.5% and will take effect on 1/1/2010. Please note that an individual co-op's rate increase may vary according to changes in demographic data.
Dental, Vision, Short Term Disability (STD) and Accidental Death & Dismemberment (AD&D)
The rates for these coverages will remain the same for 2010.
Life
The rates for Life insurance will decrease by 10% due to the Trustee's decision to move to a non-participating contract.
Long Term Disability (LTD)
The rates for LTD will also go down as a result of moving to a non-participating contract. These rates will decrease by 20%.
Because of these favorable rate actions, now is a great time to review your coverages and get a quote on Trust products! |
Traditional Plans Phased Out
In keeping with the Trust's philosophy of promoting better medical consumerism, the Traditional Medical Plans (those offered prior to the introduction of Princhoice and Medgen plans) will be phased out as of the end of this year. If a current union contract does not allow a group to make a change, these plans will be phased out at the next union negotiations. Co-ops who have these plans have many options available to obtain comparable coverage for their employees. |
New Mandates
Two laws were passed in 2009 that will impact health coverage provided through the Trust effective 1/1/2010.
The Mental Health Parity and Addiction Equity Act requires financial parity (e.g., deductibles, copayments, coinsurance, lifetime/annual limits) between mental health benefits and medical/surgical benefits. The Act also extends this parity requirement to substance abuse disorders.
Michelle's Law requires a health plan to continue coverage for a dependent child who is unable to attend a post secondary school due to a medically necessary leave of absence that would otherwise cause the child to lose full time student status.
Letters will be mailed to participating employers with more information about these new mandates. |
