Supplemental Insurance Poll - UPDATED with results
Written by Rich Robinson
Thursday, 10 April 2008
Polling closed on 4/15. This article has been updated to show results in the place of the polls.
The LMC has been wrestling with supplemental insurance for weeks now, and has come to the point where we feel it's too difficult to proceed without input from bargaining unit members. The issues revolve around what kinds of benefits should be made available through the program. We need your input. Please log in and take the poll.
Some LMCers insist that the supplemental insurance benefit was intended to give some members a way to try to get across the bridge. Other LMCers point out that supplemental insurance is considered by many to be a poor value, as it will cost most users more than it will pay out. It is around these two basic ideas that the LMC is stuck, and we are asking for your input.
First, Let's define some terms:
Wellness Benefit
The Wellness Benefit will be a reimbursement benefit. Qualified wellness-related expenses will be reimbursed at an amount of up to $25 per month. Examples of qualified expenses include a gym membership, a smoking cessation program, or a weight-loss program (classes only, no product).
FSA Plus-Up
The FSA has been called the Flex Spending Account, the 125 Plan, and the Cafeteria Plan. All are, to varying degrees, correct terms to describe this tool. The FSA Plus-Up concept is a subset of the proposed Wellness Benefit. Under the FSA Plus-Up, the library would add $25/month to members' FSA accounts.
Note: This choice may not be possible due to restrictions under federal laws. We're looking for ways to make it work, so let us know if you like it as an option. But it may not, in the long run, be possible to offer the FSA Plus-Up
Short Term Disability Insurance
Short Term Disability Insurance is a plan that replaces a part of your salary if you're unable to perform your job duties for a period of time. The plans we've been looking at would reimburse up to 60% of your salary for up to three months if you suffer a short term disability. Different providers offer this plan as a group plan or as one choice in an individual, a-la-carte supplemental program. We have a program to meet similar needs in the sick leave bank (for qualified employees).
Long Term Disability Insurance
Long Term Disability Insurance functions somewhat like the short term policy, but its term is much longer. It's designed to augment your income for many months, and often for years in the event of a serious debilitating injury or illness. This is part of a group plan. We have a program that provides a similar benefit through OPERS (for people who've been with OPERS for 5 years or longer).
Supplemental Life Insurance
Supplemental Life Insurance allows members to purchase additional life insurance as an optional selection. As with the Short Term Disability, different providers offer this plan as a group plan or as one choice in an individual, a-la-carte supplemental program.
Accident Indemnity Insurance
This insurance pays money to you in the event that you are injured as a result of an accident. It pays a certain amount for initial treatment, for follow-on treatment, and for specific injuries. This money, in the event of a covered accident, is sent directly to the insured person to be spent as they see fit. Pays for treatment, hospitalization, ambulance, and more. Pays in addition to any benefits from Anthem.
Hospital Indemnity Insurance
Similar to Accident Indemnity, but it pays money if you wind up in a hospital. So if you're carrying Hospital Indemnity insurance and find yourself in a hospital, this insurance will send a check to you to help you defray your expenses. Pays $500/day for first five days in hospital, $100/day thereafter. Pays in addition to any benefits from Anthem.
So, given these seven options, which are the most important benefits to be offered?
The next decision is a bit more difficult. The benefits are provided by companies offering different insurance models. Assume 2 companies are offering insurance, Company A an Company B. Company A has lower rates because they use group pricing, but Company A does not have the indemnity plans. Here's what their offerings look like: (example prices shown for non-smoker 48 year old female - Library provides up to $25 toward coverage)
Company A
Short Term Disability: $12 per month for $1,000 of coverage ($12-$20 depending on age)
Long Term Disability: $23 per month for $1,000 of coverage ($8-$47 depending on age)
Supplemental Life: $19.10 per month for $100,000 of coverage
($6-$227 depending on age)
Company B
Short Term Disability: $27 per month for $1,000 of coverage
($27-$33 depending on age)
Supplemental Life: $31.44 per month for $100,000 of coverage
($15-$110 depending on age, gender, and tobacco use)
Accident Indemnity: Individual $23 per month, Family $40 per month
Hospital Indemnity: Individual $30 per month, Ind & Spouse $50 per month
(Ind $25-$50, w/ spouse $47-$83 depending on age)
Thanks for your help in determining what the supplemental insurance benefit will look like.
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