UpDate - Vol. 11, No. 29, Page U.D. BENEFITS-1
April 30, 1992
UD Benefits 1992-93
Flexible benefits enrollment period

                                             April 30, 1992

To:       Flexible Benefits Participants
From:     Maxine Colm,
          Vice President for Employee Relations
Subject:  Flexible Benefits Enrollment Period

     The University's Flexible Benefits Program begins its fifth year
of operation on July 1. As a participant you will receive materials in
early May to help you assess your personal health care needs and
available benefits options. This will include a Flexible Benefits Book
and, under separate cover, your personalized enrollment form. This
year, the enrollment period runs from May 1 through May 15. You only
need to return the enrollment form if you are making a change in
benefit coverage or are joining or continuing your participation in a
flexible spending account (FSA).
     As you know, the Flexible Benefits Program gives you the
opportunity to choose the amount of coverage you need and to decide
how your benefits dollars will be spent. The cost for basic, dental,
life and disability insurance is covered by UDollars. Similarly, if
you select Principal Employee Only or Principal Employee plus
Children, your medical UDollars will equal the cost of Principal
coverage. FSAs help pay for other expenses such as day care and
certain nonreimbursable health care expenses. Equally important, these
contributions are deducted from your paycheck on a before-tax basis.
     While most of the elements of the Flexible Benefits Program
remain the same as in prior years, I do want to call several
modifications to your attention. The current HMO option will no longer
be available after July 1; however, HMO enrollees who wish to continue
their participation in a managed care program can do so by electing
coverage under HMO (Copay), Total Health Plus or Principal Health
Care. There will also be a change for those of you who have a spouse
eligible to enroll in another employer's health plan. Effective
January 1, 1993, spouses may need to take advantage of their own
employer's medical coverage to ensure complete coordination of
benefits with the University plan.
     Last, a new IRS regulation requires that we deduct dependent life
insurance premiums on an after-tax basis and we will start doing so as
of July 1, 1992. These changes as well as an in-depth review of the
University's flexible benefits program will be discussed at a series
of workshops to be held in May.
     The rising cost of health care coverage continues to affect all
of us. The University has increased the UDollars to cover its share of
the price increase, and your cost may increase as well. It is
important that you carefully review your personal health care needs
and compare the costs and benefits of each option before you make a
decision about your flexible benefits program for the coming year. If
you have questions about your flexible benefits, please call the
Benefits Office, at 831-349 or 831-8156, and also, do plan to attend
one of the May workshops.