Faculty Handbook

Optional Benefits

VII. FACULTY AND ACADEMIC STAFF BENEFIT AND RETIREMENT PROGRAMS (Cont.)

Participation in the following benefits is optional for full-time and part-time faculty/academic staff and coverage begins if written enrollment takes place within 60 days of initial appointment to an eligible status, during an Open Enrollment, or, in the case of Employee Paid Life, by furnishing evidence of insurability during Open Enrollment period:


Accidental Death & Dismemberment (AD&D)
Eligibility
Faculty/academic staff may select the AD&D Program within 60 days of initial appointment to an eligible status. Coverage is provided if death or dismemberment results from accidental cause. All faculty/academic staff appointed 50% or greater for nine months or more are eligible to participate.

Coverage
Coverage may be selected for the faculty/academic staff member and the family, if desired, in one of the varying amounts as shown in the brochure. Beneficiaries are designated by the individual and may be changed at any time.

Cost
Cost of the various coverages offered is described in the brochure available in Human Resources.


Dental Plan 
All faculty/academic staff appointed 50 percent time or more for nine months or more and their eligible dependents may be covered by a dental plan. The benefit can be retroactive to the appointment date if a new employee enrolls within 60 days of the appointment. Failure to enroll during the initial 60-day eligibility period will result in the faculty/academic staff member having to wait until the next annual open enrollment period. This coverage is available to official retirees and their eligible dependents or survivors.

Coverage
Dental plan coverage is available through Delta Dental, a traditional dental plan or Aetna, a dental maintenance organization (DMO).

The Delta Dental Plan covers fifty percent of the usual, customary, and reasonable cost of preventive, diagnostic, restorative, prosthodontics and orthodontic services. The plan provides an individual maximum of $600 per calendar year for covered charges. Orthodontic coverage is limited to those under 19 years of age and is subject to an individual lifetime maximum of $600.

Aetna DMO utilizes primary care dentists to lower the cost - it is a managed-care dental plan. Members select a primary care dentist (PCD) from the provider network and visit their PCD as needed for treatment and care. Highlights of the plan include:

* Fixed co-pays for services
* No annual or lifetime benefit maximums
* No annual or lifetime deductibles
* Orthodontia is available for adults and children

Cost
Premiums are fully paid by the University for full-time faculty/academic staff for the Delta Dental Plan. There will be a premium deduction for the Aetna DMO plan. There may be premium deduction for part-time employees depending on the percent of employment and the number of persons being covered.


Employee-Paid Life 
A faculty/academic staff member may select employee paid life within 60 days of initial appointment to an eligible status or by furnishing evidence of insurability during Open Enrollment.

Eligibility
Faculty/academic staff appointed 50 percent time or more for nine months or more are eligible to enroll for coverage.

Coverage
The coverage is decreasing term insurance with no cash or loan value. Coverage may be selected in varying amounts up to a $2,000,000 maximum depending on age and plan selected, as shown in the brochure.

Optional dependent coverage (for spouse or Other Eligible Individual and children, if any) may also be selected.

Benefits are payable to the designated beneficiary in the event of death while the plan is in force. Beneficiaries are designated by the faculty/academic staff member and may be changed at any time.

Cost
Costs vary according to the plan selected; rates are subject to future group experience.


Health Plan Coverage
If active faculty/academic staff members enroll in health plan coverage within 60 days of initial appointment to an eligible status or during an Open Enrollment, faculty/academic staff members and their eligible dependents are covered for health care services. Coverage is currently provided by Blue Cross Blue Shield of Michigan Community Blue PPO, or Blue Care Network (BCN), or Consumer Driven Health Plan (CDHP). In addition, a Blue Cross Blue Shield of Michigan Transition Plan is available to those who have a mix of Medicare and non-Medicare eligible family members. Enrollment can be retroactive to the appointment date if a new employee enrolls within 60 days of the appointment. Specific coverage details under these plans differ. In general, the following apply:

Eligibility
A faculty/academic staff member appointed 50% time or more for nine months or more may enroll themselves, their spouse or Other Eligible Individual, and their eligible dependents. Failure to enroll during the initial 60-day eligibility period will result in the faculty/academic staff member having to wait until the next annual open enrollment period.

Eligible spouses (or Other Eligible Individual) who are eligible to enroll for health plan coverage through other employment must enroll in that coverage if the annual premium cost to the spouse/Other Eligible Individual is $850 or less. MSU's health plan coverage then becomes the secondary payer.

Coverage
The health plans offered through the University provide coverage for semi-private hospital room charges up to 365 days and additional hospital expenses, including intensive care, recovery room, anesthetics, etc.. Surgical benefits, diagnostic X-ray and lab tests are provided whether performed in or out of the hospital. The plans provide coverage for office calls subject to either a co-payment and/or satisfaction of an annual deductible amount. Most other medically necessary out-of-pocket expenses are also covered subject to a deductible and co-payment. Both Blue Cross Blue Shield of Michigan Community Blue PPO, Blue Care Network (BCN) and the Consumer Driven Health Plan offer in- and out-of-network coverage. Out-of-network services require a higher out-of-pocket cost.

Prescription Drugs
The prescription drug plan is a co-pay plan for generic and brand drugs and is administered through CVS Caremark. CVS Caremark has a large network of over 51,000 participating retail pharmacies, including some of the largest drug store chains. Employees may choose to purchase their prescriptions at a participating retail pharmacy, at an MSU pharmacy (Olin Health Center or the MSU Clinical Center pharmacies) or through CVS Caremark's mail order program. (Copays)

Cost
MSU provides a monthly University contribution toward the premium for health plan coverage for eligible faculty/academic staff. If an additional premium is required, it will be deducted from the faculty/academic staff member's paycheck. The University does not make a contribution during periods when a faculty/academic staff member does not receive a paycheck.


Waiver of Health Plan Coverage
A faculty/academic staff member who is covered by another group health plan is eligible to waive their MSU health care coverage and receive up to a $600 cash payment. (Retirees and faculty/academic staff whose spouses or Other Eligible Individual are employed at MSU are not eligible for the waiver option.) The normal waiver period is January 1 to December 31, with payment to be received the following February.

The cash payment is considered taxable income.

If other coverage is involuntarily discontinued, the faculty/academic staff member has 30 days to enroll in an MSU health care plan with the waiver payment prorated.

Individuals newly hired, terminated, going on unpaid leave of absence, or retiring will also receive a prorated payment.

Individuals accrue points based on their employment percent and the number of months they are enrolled in the waiver: 1 point for each month in waiver if full-time; .75 for 3/4-time or .5 if half-time. See chart below.

Points accrued Waiver payments
Full 12 points $600
9 through 11.75 points $450
6 through 8.75 points $300
3 through 5.75 points $150
Less than 3 points $0

Eligibility
Faculty/academic staff appointed 50% time or more for nine months or more are eligible to waive MSU's health plan coverage within 60 days of appointment or during the annual open enrollment period. A completed form is not required each year during open enrollment in order to continue participation in the waiver.


Flexible Spending Accounts (FSA)

Flexible Spending Accounts enable you to save money by paying for some expenses in pre-tax dollars. Here you'll find everything you need to make informed choices about your Flexible Spending Account Enrollment.

Dependent Care Flexible Spending Accounts (Dependent Care FSA)

The Dependent Care Flexible Spending Account (Dependent Care FSA) is a benefit to help you meet your dependent care expenses, such as; child care, elder care or disabled dependent care. It enables you to save money, on a calendar year basis, by paying for dependent care expenses in pre-tax dollars.

The annual maximum reimbursement for Dependent Care FSA is $5000 per family.

Health Flexible Spending Accounts (Health FSA)

The Health Flexible Spending Account (Health FSA) program is a cost effective way to pay for medical and dental plan deductibles/copayments, eyeglasses, contact lenses, orthodontics and other health-related expenses that are not covered by insurance. It enables you to save money, on a calendar year basis, by paying for health related expenses in pre-tax dollars.

The annual maximum reimbursement for Health FSA is $2,550 per eligible employee(2016).

For plan changes and vendor information, please see Flexible Spending Accounts.

 


Footnote: 
1For benefit purposes only, half-time is defined as 50.0-64.9 percent time; three-quarter time is defined as 65.0-89.9 percent time; full-time is 90.0-100.0 percent time.

Back to Faculty Handbook
©