How are UW Employee Health Insurance Benefits & Costs Established Each Year?

For many employees, health insurance benefits are the most important fringe benefit offered by the UW System. Every year, we see changes to the health insurance program even if the only change is your monthly premium contribution. Then in the fall, during the Annual Benefits Enrollment (ABE) period, you have the opportunity to enroll in the health insurance program, make changes to your coverage level or change health insurance carriers. So let’s learn about the process of establishing those annual health plan options and costs.

What is the State Group Health Insurance Program?
The State Group Health Insurance program is an employer-sponsored program offering group health insurance to employees of state agencies, UW System, UW Hospital and Clinics Authority and participating local government employers.

The UW System does not determine the benefits, premiums, employee premium contributions or which health plans are offered. Changes for 2018 are expected to be approved by the Group Insurance Board (GIB) on August 30, 2017.

Who decides how much I have to pay for health insurance premium contributions?
The health plans submit premium bids to the Department of Employee Trust Funds (ETF) each July for the following year. The bids and required claims data is examined by the Group Insurance Board’s (GIB) actuaries and negotiations are conducted by ETF. The GIB must approve the premium rates for each health plan.

While most employees do not pay the full premium cost, the full premium cost does impact the amount of the employee monthly premium contribution. Each year, the monthly amount that employees are required to pay for health insurance is established by the state Division of Personnel Management (DPM). DPM determines the employee contribution towards premium based on the provisions in Wis. Stat. § 40.05 (4) (ag) and (ah). For most employees, the monthly premium contribution may not exceed 12 percent of the average premium cost of plans offered in each premium tier.

What are premium tiers?
ETF assigns each health plan to one of three premium tiers based on the relative efficiency with which a plan is able to provide the benefits and the quality of care that is required by the GIB. Plans are given extra credit in the tier assignment process if they scored well on measures of quality, patient safety, and customer satisfaction.

For most full-time employees, your monthly health insurance premium contributions are based upon the Tier in which your health plan is placed. A plan’s Tier may change from year to year but there will always be at least one Tier 1 plan offered in your area.

Who administers the State Group Health Insurance Program?
The Department of Employee Trust Funds (ETF) and the Group Insurance Board (GIB) have statutory authority for program administration and oversight [Wis Stat § 15.165 (2) and 40.03(6)]. All health plans follow GIB guidelines for eligibility and program requirements. The health plans (except the Access Plan and Access HDHP) all offer the same benefit package called Uniform Benefits (as well as the option of electing Uniform Dental coverage for a small additional cost) and compete in an annual competitive premium rates bid process.

Who decides what’s covered under the State Group Health Insurance Program?
The GIB generally determines the coverage offered by the health plans, however, the program must also comply with applicable state and federal laws. The GIB has a fiduciary responsibility to administer the program in accordance with state statute. The GIB decisions are based on ETF recommendations, GIB actuaries and other guidance.

Who decides which health insurance carriers are offered?
In today’s environment, the health plan decides if they want to participate in the State Group Health Insurance program and determines the counties in which they will offer plan providers.
The health plans must meet strict contractual requirements and their participation is authorized annually by the GIB if they meet the required criteria. If a health plan leaves the program, its members must select a new health plan during ABE.

Who is on the Group Insurance Board (GIB)?
The GIB is an eleven-member board that meet specified membership requirements. The GIB sets policy and oversees administration of the group health, life insurance and Income Continuation Insurance plans for state and UW employees and retirees and the group health and life insurance plans for local employers who choose to offer them. The Board also can provide other insurance plans, if employees pay the entire premium.

For more information about the GIB, please click here.

What is the role of the Legislative Joint Finance Committee (JFC)?
The 2017-2019 executive state budget included a requirement that any contracts for a self-insured health insurance program must be submitted to the JFC for review. The JFC then has a 21-day during which the JFC must decide if they will act to reject or modify the contracts.

The State of Wisconsin currently administers three self-insured benefit programs: pharmacy, Uniform Dental and the state-wide Access Health Plan. The other health plans currently offered are not self-insured (they are “fully-insured”). Because the JFC rejected the contracts for a self-insured health insurance program, all health plans, including the Access Plan, will be fully-insured in 2018. The pharmacy and Uniform Dental will remain self-insured.

Source: UW System Office of Human Resources & Workforce Diversity

Well Wisconsin Incentives Are Taxable

StayWellIncentive

All incentives paid to participants of the group health insurance programs are considered taxable income to the group health plan subscriber and are reported to your employer for tax purposes. Health information, including responses to the health assessment, are protected by federal law and will never be shared with your employer.

If you are covered under the State of Wisconsin Group Health Insurance program, you are eligible for a $150 incentive to complete a health screening and assessment. Depending on your health plan, you may also be eligible for financial reimbursements for wellness related expenses such as gym memberships, fitness classes, the cost to participate in Community Support Agriculture (CSA) programs and rewards for participating in health or wellness programs or challenges. You can learn more information about the benefits available to you through the StayWell website (https://wellwisconsin.staywell.com/).

Per guidance from the federal government and the Internal Revenue Service (IRS), these benefits are classified as taxable fringe benefits. This means that any financial incentive you receive from the program is taxable income for state and federal tax purposes.

What this means for you:

  • Throughout 2017, financial incentives will be reported by your employer as a taxable wage and will be subject to applicable withholdings and taxes. You will see withholdings for incentives issued in the current calendar year reflected on your earnings statement. This will include incentives issued to your eligible family members.
  • If your incentive was already received, and you are paid on a bi-weekly basis, you will see the tax withholding on your August 31st paycheck.  If your incentive was already received, and you are paid on a monthly basis, you will see the tax withholding on your September paycheck.  The November earnings statements would include tax withholding for incentives issued through the October 20, 2017 deadline.
  • Withholding will include 7.65% for Social Security and Medicare and may include withholding for federal and state taxes, depending on the number of exemptions you claimed on your W-4.
  • Federal regulations require the payroll center to receive financial data regarding incentives issued to employees and their covered family members. Your health information is protected by federal privacy regulations and is not shared with your employer.
  • These taxable fringe amounts will be processed with the code: XHW (Tax Fr – Health/Wellness) earnings code.

Even with the federal government’s tax regulations, eligible employees are able to receive substantial financial rewards for using the wellness incentives offered by the State of Wisconsin and participating health plans.

Please contact Human Resources at payrollandbenefits@uwgb.edu or ext. 2390 if you have any questions.

Important 2018 Health Plan Changes

The Department of Employee Trust Funds (ETF) has announced that six health plans will not be participating in the State Group Health Insurance Program in 2018.  Of the six health plans no longer available in 2018, four currently provide coverage in Northeast Wisconsin:

  • Anthem Blue Preferred Northeast
  • Arise Health Plan
  • Humana Eastern
  • United Healthcare of Wisconsin

Employees currently enrolled in these plans will be required to elect a new health plan during the annual open enrollment period, which will occur October 2 – October 27, 2017 for January 1, 2018 coverage.

Pending approval by the Group Insurance Board, the health plans available in our area for 2018 will be:

  • Dean Health Insurance-Prevea 360
  • Network Health
  • Security Health Plan-Valley
  • WEA Trust-East

Please see ETF’s website for additional information, including a Q&A Guide for 2018 Health Plans.  The health plans that will not be participating in 2018 will be sending out notifications to members later this week.  Our office will continue to provide updates as more information becomes available.  In the meantime, please contact payrollandbenefits@uwgb.edu or 920-465-2390 with any questions.

Assistant Women’s Softball Coach (50%)

The Assistant Women’s Softball Coach reports to the Head Women’s Softball Coach and assists the Head Coach in directing the overall planning and execution of a Division I softball program.  It is the responsibility of the assistant coach to support the Head Coach in leading a successful softball program. The program’s success will be attained through athletic success, academic achievement, service learning, and leadership development. Duties and responsibilities include, but are not limited to, assisting with the organization and administration of the Green Bay Women’s Softball program including practice and game coaching, recruiting, scouting, public relations, and other duties as assigned by the head coach.

For more information and full position responsibilities, please see the full position announcement.

To ensure consideration, please apply by Saturday, September 2, 2017.