9-Month Employee Summer Premium Collections

Process Updates

What's Changing

Q. Why is the summer premium collection process for 9-month faculty & staff being modified?
A. The process is being changed to simplify administration and comply with IRS regulations.

Q. Does this change impact my medical, dental or vision coverage?
A. No, this change does not impact your elected coverages.

Q. Does this change how much a 9-month employee pays for coverage?
A. No, the annual premium amounts will not change. The only change is to the timing – the collection of the summer premiums is delayed by 1 semester and rather than paid in advance will be paid partially in advance and partially in arrears.

Timeline of current process vs. new process

Fall 2022 Impact

Q. Why are the 9-month employees paying the 12-month rates for the Fall 2022 semester?
A. Due to the change in the collection process, there will not be any 2023 summer premiums collected during the Fall 2022 semester – the 9-month rates with prepays will resume in January 2023.

Q. How do the bi-weekly 12-month premium rates compare to the 9-month rates?
A.The 12-month rates are lower than the 9-month rates (see example below) so you will be charged lower contributions for the Fall 2022 semester.  See the rate schedule at: https://hr.wayne.edu/tcw/health-welfare/2022-active-rates-plan2.pdf

Q. For what period of time will 9-month employees pay the 12-month rates?
A. The 12-month rates will be charged during the Fall 2022 semester only on pay dates 8/17/2022 thru 12/21/2022.

Contribution Examples:

Example 1 Example 2
Health Alliance Plan - 2-person coverage Community Blue PPO - Family coverage
9-month bi-weekly rate: $266.00 9-month bi-weekly rate: $733.52
12-month bi-weekly rate: $199.50 12-month bi-weekly rate: $550.14
Difference (lower premium): ($66.50) Difference (lower premium): ($183.38)
Delta Dental – 2-person coverage Delta Dental - Family Coverage
9-month bi-weekly rate: $10.17 9-month bi-weekly rate: $18.56
12-month bi-weekly rate: $7.63 12-month bi-weekly rate: $13.92
Difference (lower premium): ($2.54) Difference (lower premium): ($4.64)

Starting January 2023

Q. When do the 9-month rates with summer premium collections resume?
A. The 9-month rates with summer collections will resume (subject to annual rate increases) in 2023 on pay period 1 - pay date of January 4, 2023.

Q. If a 9-month employee is not returning for the fall semester, how can benefits be continued for the second half of the summer (coverage for July 15 through August 31)?
A. Deductions for the second half of the summer will need to be collected on a pre-pay basis at the end of the winter semester.

Q. How will summer premiums be collected going forward?
A. Summer premiums will be collected during the calendar year in which the summer coverage is provided.  For the 2023 summer coverage, the premiums for the 1st half of the summer will be collected in advance during the Winter 2023 semester and the 2nd half of the summer will be collected in arrears during the Fall 2023 semester.