Office of the Vice President for Global Communications

Wednesday, August 14, 2013

Long-term disability plan part of Open Enrollment for 2014 benefits

Faculty and staff who want to enroll in the Expanded Long-Term Disability (LTD) plan or increase their coverage level can do so during this year's Open Enrollment (Oct. 28-Nov. 8) without having to provide a health statement of insurability.


More information

• Plan details are available on the Benefits Office website.

Frequently asked benefits questions.

• Call the HR/Payroll Service Center: Dial 5-2000 from the U-M Ann Arbor campus, 734-615-2000 locally, or 866-647-7657 toll free, 8 a.m. to 5 p.m. Monday through Friday. Have your UMID number ready when you call.

Open Enrollment dates

• Aug. 19: 2014 benefits plan rates available on Wolverine Access.

• Late September: Open Enrollment information available on the Benefits Office website. Retirees will receive an Open Enrollment book mailed to their home address.

• Oct. 28-Nov. 8: Open Enrollment period.

LTD usually is not included in Open Enrollment and eligible faculty and staff can enroll at any time with approval based on a statement of good health. Because of enhancements to the Expanded LTD plan, the university is offering this one-time opportunity.

An extremely important plan, LTD provides up to 65 percent income replacement on covered base salary and benefits continuation if a faculty or staff member becomes totally disabled and can no longer work.

The plan will be enhanced in 2014 with:

• Increased university-paid coverage for income replacement (from $30,000 to $57,500).

• A shorter waiting period (two years instead of four) for new faculty and staff to receive university contributions.

• Smaller contributions for those who elect additional coverage up to their full salary when their salary exceeds $30,000.

• A change in retirement savings contributions for disabled employees (15 percent up to $57,500). Faculty and staff who earn more than $57,500 will need to elect additional LTD coverage to receive a contribution equal to 15 percent of their full salary.

In addition to the LTD enhancements, the following benefits changes go into effect in 2014.

Co-pays increase

• Medical: No co-pays will be charged for preventive care. Primary care office visits and urgent care visits will be $25, specialty care office visits will be $30 and emergency room visits will be $100. Co-payments for ER visits will be waived whenever the patient is admitted to the hospital.

• Prescription drugs: The co-pay for generic tier-1 drugs will be $10, and $20 for brand name tier-2 drugs. The co-pay for tier 3 brand name medications will remain at $45. Savings Tip: Use NoviXus mail order pharmacy services for any ongoing maintenance medications that are taken regularly and save one third of the out-of-pocket cost over purchasing at a retail pharmacy.

More part-time employees receive full university contributions toward health care

Employees working 30 hours per week (75 percent effort) or more will be eligible for health care coverage with the same university contribution as full-time employees. This reduces the requirement for full university contributions from the current threshold of 32 hours per week or 80 percent effort.

Opt-out cash eliminated

The university no longer will offer opt-out cash ($66.67 per month) to employees who waive U-M health care coverage.