TO:

Full-Time Staff and Faculty

FROM:

The Office of Human Resources

DATE:

October 13, 2022

SUBJECT:

AU is expanding medical premium subsidy; negotiated minimal increases and some decreases for 2023

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Part of American University's focus on our people includes supporting your work and well-being. An important component of this support is our overall compensation approach, which includes both salary and our competitive benefits package, which together make up your total compensation. Our benefits package includes medical coverage, life insurance, retirement plans with the university’s matching contribution, educational benefits for dependent children, tuition remission, and much more. As part of our investment in our people, AU is continuing our commitment to comprehensive and affordable benefits alongside the compensation increases already underway.

AU’s goal is to offer you and your family comprehensive employee benefits coverage at the lowest possible payroll deductions. Many of our benefit contracts renew each January and were recently reviewed with the University Benefits Project Team, which is comprised of faculty and staff from across the University. As a result of our negotiations with the benefits vendors, we will continue to offer our comprehensive coverage to you with minimal cost increases in medical benefits and cost decreases in other areas. We are especially glad to achieve these cost levels for 2023, given the pressures on health care and other benefit costs. Here is what it means for you and your family next year.

Effective January 1, 2023:

• CareFirst rates will increase by 1.9%.
• Kaiser Permanente rates will increase by 7.99%.
• Delta Dental rates will decrease by 13.9%.
• The life insurance rates will decrease by 10%.
• Participants in CareFirst who utilize specialty drugs may be eligible for reduced copayments through SaveonSP. This new Express Scripts feature utilizes manufacturer discounts to eliminate copayments on certain specialty drugs.
• All other copayment levels, coinsurance amounts, and deductibles will remain the same in 2023.
• Expanding the health plan subsidy provided to AU’s lowest-paid employees (see below).

Please refer to the Benefits Rate Sheet for premium information for our medical and dental plans for calendar year 2023.

We appreciate the input provided by the faculty and staff members of the University Benefits Advisory Team.

Health plan subsidy expanded

The university is expanding the health premium subsidy provided to AU’s lowest-paid employees beginning in January 2023. Higher subsidy contributions by AU will be provided to employees who earn under $55,000 per year and are enrolled in either CareFirst or Kaiser:

• AU will pay for 95% of the cost of individual coverage
• AU will pay for 80% of the cost of individual +1 or family coverage

The expanded subsidy will increase the eligibility limit from its current level of $40,000 and increase AU’s contribution for dependent coverage from 65% to 80%. For those who qualify for the expanded subsidy, annual payroll savings will range from $936 to as much as $4,287 in 2023.

2023 Open enrollment

Open enrollment for 2023 benefits begins on Monday, October 31, and closes on Monday, November 14. Please use this opportunity to review your benefits and make full use of the comprehensive benefits available to you. Whether you’ve had your AU benefit elections for a long time or if you’re wondering if you should make a switch, you can weigh your options and make changes to your benefits without a qualifying life event during open enrollment.

The 2023 Benefits and Wellness Fair will offer virtual and in-person events throughout the open enrollment period. There are opportunities to learn more about your benefits, attend financial workshops, and ask questions during virtual office hours. Every session will be giving away a prize, so make sure to join any session that you’re interested in. Watch for more information in the coming weeks.

For more information about the renewals or open enrollment, please contact hrpayrollhelp@american.edu.