UpDate - Vol. 15, No. 30, Page FB-1
May 2, 1996
Flexible Benefits '96-'97
Changes at a glance

This is a summary of highlights and changes to the University of
Delaware Flexible Benefits Program for plan year July 1, 1996, through
June 30, 1997.

This year the University rebid its dental, long-term disability, and
life insurance programs. As a result, these programs have been
enhanced. Some employee costs have decreased. Below is a summary of
enhancements and changes.


Prices/Contributions
   The University continues to fund the entire cost (for full-time
   employees) of the Basic medical plan, which will increase by 2.4
   percent this year. Individuals who choose other University plans
   pay the price difference between Basic and their plan selections.
   Employee costs for the traditional BCBSD plans remain essentially
   the same. Employee costs for Principal Health Care will decrease an
   average of 27.2 percent, while employees enrolled in Staff Model
   HMO and Independent Practice Association will pay an average of
   13.5 percent more for coverage.

   Employees choosing the four-times-salary life insurance option
   and/or dependent life insurance coverage will notice a substantial
   decrease in rates.


Health Care
   * Coverage added for all plans except Basic: diagnosis and
     treatment of Attention Deficit Disorder (ADD) and Attention
     Deficit Hyperactivity Disorder (ADHD)
   * New name for Total Health Plus is Independent Practice
     Association; HMO is now called Staff Model HMO
   * Basic Plus Plan discontinued due to low participation and rising
     costs


Dental Plan
   * Employee and spouse coverage category added
   * Dependent children age limits increased from age 19 to 21 (full-
     time students, from age 23 to 24)
   * Coverage added for loss/injury to natural teeth due to an
     accident
   * MetLife Preferred Dentist Program (PDP) offered as optional
     coverage
   * Dental group coverage extended to eligible University retirees at
     full cost


Group Life Insurance
   * Maximum coverage increased to $800,000
   * Premium waiver eligibility extended from age 60 to age 65
   * Fourth dependent life insurance option added: $20,000
     spouse/$8,000 per child
   * Dependent children age limits increased from age 19 to 21 (full-
     time students to age 24)
   * Retiree Group Life Plan offered to eligible employees retiring on
     or after July 1, 1996; retiree pays full cost


Long-term Disability Insurance
   * Minimum monthly income benefit increased from $50 to $100
   * Maximum monthly income benefit increased for standard option (60
     percent) from $4,000 to $5,000 and for high option (66-2/3
     percent) from $6,500 to $7,500
   * Three-month survivor benefit added


Social Security Wage Base
   1996 Social Security FICA tax rate is 7.65 percent for wages up to
   the base of $62,700 and 1.45 percent for wages above $62,700.