University of Delaware
Office of Public Relations
UpDate - Vol. 16, No. 29, May 1

Flex Benefit Insert

                 1997 BENEFITS: HIGHLIGHTS AND CHANGES
     
     This is a summary of highlights and changes to the
University of Delaware Flexible Benefits Program for plan
year July 1, 1997, through June 30, 1998.
     
Prices/Contributions
     The University continues to fund the entire cost of the
Basic medical plan and the dental plan for full-time
employees and their families. The University's contributions
will increase by 2.9 percent for the medical plans and by
7.1 percent for the dental plan.
     Many employees will see a decrease in their medical
plan costs effective July 1, 1997. The largest decrease will
be for HMO and Independent Practice Association subscribers
who will have an average rate reduction of 32.1 percent. For
BCBSD Comprehensive subscribers, employee costs will
decrease an average of 4.4 percent. Employees participating
in Principal Health Care will experience an average rate
increase of 7.6 percent (ranging from 37 cents to 91 cents
per pay period).
     
Health Care
     MedLab - Blue Cross has added MedLab as a provider for
laboratory services under all program options.
     Allergy Testing - The Comprehensive plan now includes
allergy testing, payable at 80 percent after the deductible.
Principal Health Care has also improved the benefit for
allergy testing to a $5 co-payment per visit.
     Durable Medical Equipment - Principal Health Care has
extended its durable medical equipment benefit for external
prosthesis to include replacement per medical necessity.
     
Social Security Wage Base
     1997 Social Security FICA tax rate is 7.65 percent for
wages up to the base of $65,400 and 1.45 percent for wages
above $65,400.