New Medical Cost Sharing Strategy
New Medical Cost Sharing Strategy for 2022
With an 8% increase in health insurance premiums in 2022, the College explored options to mitigate the impact of this increase to our community. Working with two consultants from the Virginia Private Colleges Benefits Consortium (VPCBC), the college ultimately selected a strategy that results in the College contributing equal dollars to the various tiers, regardless of plan choice, instead of a flat percentage of contribution (currently 70%) on all plans. This change was recommended for several reasons, including compliance with the Affordable Care Act.
To determine the College’s premium dollar contribution for 2022, the College increased its contribution to 75% for Plan 7. Those dollars are then applied to the other plans, resulting in differing percentages of contribution, but an equal contribution of dollars. While this increases costs to the College, it reduces employee premiums for 60% of our covered faculty and staff. This change will be phased in over two years, beginning with Plan 7 and 9 for 2022. For employees electing Plan 4, the college will keep the same cost sharing contribution of 70% in 2022, to allow those in Plan 4 time to evaluate whether the benefits of that plan are worth the additional expense before the college fully implements this funding change in 2023.
The College will also be contributing to the Health Savings Account (HSA) that pairs with Plan 7, our High Deductible Health Plans (HDHP). The college will contribute $500 annually for single coverage, and $1,000 for all other tiers. HSAs are fantastic savings vehicles that come with triple tax savings. HSAs can only be paired with our HDHP Plan 7.
|Memo from David Mowen on Open Enrollment 2022||Memo from Kathy Martin on Open Enrollment 2022|
|Cost Sharing Rate Chart for 2022|
For questions regarding any of our benefit offerings, please contact Human Resources: 375-2442, or 375-2455 or visit our office on the first floor of College Hall.