Health Insurance Premium Increases for FY 1998-99

Published: June 25th, 1998

Category: Memos

Peter H. Maren, Assistant Director

The General Appropriations Act (House Bill 4201) increased the employer portion of state health insurance premiums effective July 1, 1998. Employee premiums will increase effective January 1, 1999. The legislature did not change the benefit structure, the co-payment, or the deductible provisions.

We have been advised that these premium increases were necessary to avoid a projected deficit of $138.7 million to the Health Insurance Trust Fund for fiscal year 1998-99. The attached chart provides the new premiums for various classes of employees.

Departmental fiscal staff will notice the scheduled increase to the employer portion beginning with the July 2, 1998, pay warrant. Employees will not see an increase in their premiums until January 15, 1999. Employer contributions equivalent to the difference between the old amount and the new amount for 9/10 month faculty will be made up in late July, following instructions from the Division of State Group Insurance (DSGI). We will provide you with more detailed information as soon as DSGI announces specific instructions.

Should you have any questions, please call University Benefits at (352) 392-1225, Suncom 622-1225.

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