Note BCBS Health Club Credit Program information
BCBS recently added a new benefit to some of its health plans called the Health Club Credit Program. This is not a part of the PERS plan. This option was not offered by BCBS at the time of the PERS plan renewal and, therefore, was not considered. The premiums at that time were increased by 19 percent to fund our present plan and are now set until June 2009.
BCBS recently presented information to the PERS board about the new Health Club Credit Program. The program offers participating members $20 toward their health club membership if they go to an approved club and exercise at least 12 times a month. Based upon the experience in other plans, 6 percent of the members participating in the plan will meet the eligibility requirements for the credit in any given month. The additional premium required to pay for this benefit is $2.19 per contract per month. For the PERS plan, this would total to about 1 million dollars in additional premium for a biennium. It was noted that if plan utilization was 10 percent, premiums would need to go up $3.65, if utilization was 15 percent, premiums would go up $5.47 and if utilization was 20 percent, premiums would go up $7.30 per month. Alternatively, if this benefit is not paid for with additional premiums, the plan design would need to be changed to increase the annual deductible for a single contract by $20 with a family maximum increase of $60 at 6 percent utilization and the deductible would increase incrementally as utilization increased.
In the upcoming months, the PERS board will consider the 2009-2011 plan design. This item will be considered as part of the renewal process along with other recommendations for changes and additions to the plan design as well as the cost of maintaining the existing plan.
-- Amanda Eickhoff, Assistant Director for Work Well, Wellness Center, amandaeickhoff@mail.und.edu, 701.777.0210 |