UpDate - Vol. 11, No. 29, Page U.D. BENEFITS-1
April 30, 1992
UD Benefits 1992-93
1992 changes at a glance

Flexible benefits administration transferred to the University
     mainframe computer.

FSA reimbursements automatically deposited to same bank as paycheck--if
     no automatic deposit there will be a separate UD check on payday.

Medical UDollars equal the cost of Basic coverages except for those
     who select Principal Employee Only or Principal Employee plus
     Children, in which case UDollars equal the cost of Principal
     coverage.

Dependent Life Insurance contributions must now be paid with after-tax
     dollars in accordance with IRS regulations.

Prices/Contributions reflect higher medical costs to the University
     and to employees.

Social Security wage base at $55,500 taxed at 6.2 percent.

Medicare wage base at $130,200 taxed at 1.45 percent.

Health care coverage will change as follows:

Effective July 1, 1992

     - HMO high option replaced with HMO (Copay) benefits; former HMO
     high option participants who do not select other coverage will
     automatically receive HMO (Copay) benefits.

     - Provider networks established for lab and out-patient radiology
     services. Higher level of benefits will be provided if network
     lab and out-patient radiology services are utilized.

     - Nervous and mental services modified to include up to 60 days
     of acute care plus an additional 180 days of partial or
     residential care.

     - Intracorp's medical review procedures modified to include
     surgical appropriateness, maternity stays, chiropractic services
     and out-patient mental health/substance abuse treatments and
     visits.

     - $1 million lifetime maximum expanded to all services and plans.

Effective January 1, 1993

     UD employees will have their spouse's claims coordinated with
     coverage available from the spouse's employer. If spouses do not
     elect coverage for themselves, UD benefits may be reduced. This
     applies only to spouses-not to children.