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News
Your source on union-negotiated health care
benefits
UHC drops its rates
April 21, 2003 -
UHC, whose rates were set to climb dramatically this July, contacted the
state to indicate it found errors in its calculation of the premium for
state employees this July.
When setting its rates it failed
to consider the increased out of pocket maximum and other changes in the
plan design that would have lowered its premium. To make sure the rates
UHC is now providing are accurate the state had our outside health care
consultant Towers Perrin review UHC's methodology. Towers Perrin confirmed
their methodology was accurate.
UHC will change its July 1, 2003 rates for single from
a proposed $100.80 to $71.08 and for family from a proposed $214.67 to
$189.62. UHC will be sending a mailing to state employees explaining this.
Because the state pays 90% of the statewide average
HMO premium, this move lowers the statewide average. The result is that
employee's share of other HMOs would therefore go up. However discussions
with the state have resulted in them agreeing to not raise the rates for
those other plans. Therefore the employee's share of the premium for all
other plans will remain as listed in the open enrollment material.
Even with this UHC change, employees will still save
substantially by going with MMO.
View the differences
between UHC and MMO.pdf for details.
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