The latest work-life information at IU
No. 45
October 2008

University Human Resource Services
Informed Employee

Annual Open Enrollment

Once a year, full-time employees have the opportunity to make changes in medical, dental, and Personal Accident Insurance coverages and to enroll in the university’s Tax Saver Benefit (TSB) and Wellness HRA Plan pre-tax reimbursement accounts. This year, employees will have a new opportunity: to participate in the IU HDHP PPO & Medical Savings Plan. See separate article in this issue.

If an employee does not take any enrollment actions during Open Enrollment, participation in medical, dental, and Personal Accident Insurance will remain the same at the 2009 contribution rates. If an employee does not enroll in a TSB reimbursement account or the Wellness HRA, he/she will not be a participant in 2009.

Participation in the university’s TSB Plan requires enrollment each year to take advantage of pre-tax reimbursement of health and dependent care expenses. Employees do not need to be enrolled in an IU-sponsored medical or dental plan.

The Open Enrollment period takes place during November of each year, with enrollment changes becoming effective on January 1. This is an opportunity to:

  • Select a different medical plan or drop a plan.
  • Add or drop dependents.
  • Add or drop dental coverage.
  • Add, drop, or change Personal Accident Insurance.
  • Allocate contributions for pre-tax reimbursement of health care and/or dependent care expenses (TSB).
  • Complete a tobacco-free affidavit to participate in the Wellness HRA.

An Open Enrollment packet with additional information and enrollment forms will be sent to full-time employees in mid-October through campus mail. The deadline for submitting forms is November 14, 2008.
Eligibility provisions for enrolling dependents in IU-sponsored medical and dental plans are available at


2009 Health Care Plans

7.47 Percent Increase in Medical Premiums

For 2009, there will be a 7.47 percent weighted average increase in medical premiums for the university’s medical plan options. There will also be a 3.6 increase in dental premiums. These are adjustments in total premiums. Employee contributions will increase or decrease based on the difference between total premium and the university’s contribution amount, with a minimum employee contribution of $5 per month for employee-only coverage and $10 when one or more family members are covered. For 2009, the university will contribute up to the following amounts for medical and dental plan coverages:

2009 University Contributions
Employee Only
$ 5,362.22
$ 9,330.53

For Fiscal Year 2008/2009, it is estimated that Indiana University will contribute a total of $146 million for employee health care coverages.

Highlights of Changes for 2009



IU PPO $900 Deductible

Blue Preferred Primary POS

IU HDHP PPO & Medical Savings Plan



IU Tobacco-free Wellness Program

As an incentive for the non-use of tobacco and to promote a healthy life, the university provides the IU Tobacco-free Wellness Program which includes these two distinguishable plans:

Tobacco Cessation Plan

This plan covers the cost of a Tobacco Cessation Plan with Free & Clear, Inc. Quit for Life™ cessation program. The benefit is available to all full-time Academic and Staff employees and their family members 18 or older even if they are not enrolled in an IU-sponsored medical plan. The plan is fully paid by the university. To enroll individuals may call 866-784-8454 (1-866-QUIT-4-LIFE) or visit

Free & Clear’s Quit for Life™ program includes an individualized cessation plan. The program offers an assigned Quit Coach, phone counseling sessions designed to set and reach a quit date, nicotine replacement therapy as needed, and one year of follow-up phone and Web assistance to help participants stay “quit.”

Wellness HRA Plan

Visit the Wellness HRA Plan Web page at to read and understand this plan’s criteria and provisions before enrolling.

The Wellness HRA Plan is available for full-time employees who sign an affidavit (provided in the Open Enrollment packet) indicating their non-use of tobacco. Employees who are not tobacco-free at the time of Open Enrollment may still enroll (during Open Enrollment only) by agreeing to certain criteria.

The Wellness HRA is an employer-paid account set up under Internal Revenue Service regulations that allow preferential tax treatment for contributions. The account is funded entirely by the university. Neither IU contributions to nor reimbursements from an HRA are considered taxable income to the employee.

Contributions of $10 per month will be made for those employees who sign the affidavit. See the HRA Web page for details about reimbursements and allowable expenses.

Account balances up to a $240 maximum will carry over into the next year. Employees who fail to reenroll for 2009 will forfeit any remaining 2008 balance. See the HRA Web page for details about submitting and receiving payment for claims.

It is important for employees who are enrolled in the Wellness HRA Plan and the TSB Plan and/or IU HDHP PPO & Medical Savings Plan to understand the order in which claims will be reimbursed, as well which claims can be paid from an account. This information is available in Open Enrollment materials and on the Web.

Tobacco Use and Health
First Use of Cigarettes in Youth

American Legacy Foundation (February 2008)




Page updated: 22 September 2008