2009 Cafeteria Plan Funding

For 2009 benefits, the University will once again be offering a Cafeteria Plan approach to our pre-tax benefit offerings:

If electing Medical Plan A coverage, employees will receive $750.00 (or $62.50 per month). Part-time employees will receive a prorated Cafeteria Plan contribution based on the $750 and the employee’s percentage of assignment. In addition to the $750.00, the University will continue to fund 100% of the individual employee medical insurance premium for Medical Plan A. This Cafeteria Plan contribution of $750 will be applicable to the following insurance coverages:

If electing Medical Plan B coverage, employees will receive $1,486.32 (or $123.86 per month). In addition, the University will continue to fund 100% of the individual employee medical insurance premium for Medical Plan B. Part-time employees will receive a prorated Cafeteria Plan contribution based on the $750 and the employee’s percentage of assignment, plus $736.32. This Cafeteria Plan contribution of $1,486.32 will be applicable to the following insurance coverages:

Example of Monthly Premiums/Funding–

If Electing Medical Plan A Coverage:

(Employee Plan A premium = $464.38)

Example of Monthly Premiums/Funding -

If Electing Medical Plan B Coverage:

(Employee Plan B premium = $396.28)

Cost of Benefits Chosen:

Employee Medical =

Dependent Medical =

Employee Vision =

Employee Dental =

Total Benefit Cost =

Less University Funding Provided:

Employee Medical =

Cafeteria Plan =

Total University Funding =

Employee Monthly Payroll Reduction =

$464.38

$348.24

$2.88

$11.06

$826.56

$464.38

$62.50

$526.88

$299.66

Cost of Benefits Chosen:

HSA (Health Savings Account) =

Employee Medical =

Dependent Medical =

Employee Vision =

Employee Dental =

Total Benefit Cost =

Less University Funding Provided:

Employee Medical =

Cafeteria Plan =

Total University Funding =

Employee Monthly Payroll Reduction =

$124.00

$396.28

$297.18

$2.88

$11.06

$831.40

$396.28

$123.86

$520.14

$311.26

If Cafeteria Plan dollars are not spent in full, remaining dollars cannot be spent on other benefits or credited to the employee. Additionally, employees must elect coverage option(s) during 2009 Annual Enrollment in order to receive the Cafeteria Plan contribution.

HSA (Health Savings Account): For 2009, Medical Plan B will once again be an IRS qualified high deductible health plan, allowing for the offering of Health Savings Accounts (HSA’s). This insurance plan will have a $1,500 individual deductible, a 20% cost share responsibility to the member, and full preventive coverage. This plan has no office visit or prescription drug co-pays, as these expenses apply to deductible and cost share. The 2009 plan will allow participants to establish a Health Savings Account (HSA), which is an interest-bearing savings account that can be used to pay for qualified medical expenses (very similar to an MRA). However, HSA’s by IRS guidelines do not have the “use it or lose it” mandate as in the MRA and instead allows participants to build savings accounts to pay for immediate or future medical expenses or even Medicare premiums at a later time. Participants can apply the University’s Cafeteria Plan funding to their HSA accounts through their 2009 open enrollment elections, which can potentially fund the majority of the individual deductible of that plan. Further information concerning HSA’s can be accessed on the Human Resources website by clicking https://hsamember.com/faqs.shtml.

To Elect the Cafeteria Plan funding: Click on the “Health” Group link on the Self Service Open Enrollment menu.

To Elect the Health Savings Account: Click on the “Flex Spending” Group link on the Self Service Open Enrollment menu.

Questions concerning the 2009 Cafeteria Plan contribution and associated benefits should be directed to the Human Resources Office at benefits@semo.edu or x2206.