As you know from the All-Staff meetings, health insurance rates for the Blue Cross Blue Shield health plans were budgeted to increase by 30% from 2017 to 2018 plan years based on actual usage and cost trends, particularly for pharmaceuticals.
Gina, Jesse and I met with the Blue Cross Blue Shield representative to review the renewal and there is better news! For 2018, rates will increase in the range of 11.0%/11.1% for the high-deductible health plan and 11.3%/11.4% for the traditional health plan, instead of the projected 30%.
Dental rate increases are capped at 9% for 2018. Although the renewal information has not yet been received, it is expected that the rates will truly increase by 9%.
We are in the process of developing the actual paycheck deduction rates and employer contribution rates. The percentage split of the premiums paid by the employee and the Library will not change for 2018.
Most employees are enrolled in the pre-tax plan for paycheck deductions. Thus, the impact on your net pay will not be the full cost of the rate increases since you will save on federal/state/Social Security/Medicare taxes.
Medical insurance is paid via paycheck deduction one month in advance of coverage. So the new rates will impact both December paychecks for the January coverage month. More to follow soon in preparation for the upcoming Open Enrollment process.