Health Care Premiums to Rise in July

FAYETTEVILLE, Ark. – On July 1, the increase in health care premiums previously reported to University of Arkansas employees presently covered under UMR will go into effect.

"After learning of the need to increase premiums by 19 percent, or $5 million annually, we immediately began analyzing options and gathering feedback in order to find the best solution," said Barbara Abercrombie, associate vice chancellor for human resources.

Abercrombie consulted with both the faculty and staff senates, and received inputfrom numerous employees and the Chancellor's Executive Committee. Thisultimately led to the solution that was recommended to, and approved by, the UA System office. The recommendation was due May 1.

The recommendation created a six-tiered system to increase premiums based on salary. The tiers and related percentage increase follow, and the complete health and dental rates may be downloaded here.

1. Employees earning up to $28,000 will see no increase in health care premiums.
2. Employees earning between $28,001-38,999 will see no increase in health care premiums for an individual and a 6.5 percent increase for a family plan.
3. Employees earning between $39,000-54,999 will see a 10 percent increase for an individual, and a 12.5 percent increase for a family plan.
4. Employees earning between $55,000-99,999 will see a 19 percent increase in health care premiums for individual and family plans.
5. Employees earning between $100,000-149,999 will see a 21 percentincrease for an individual and 28 percent for a family plan.
6. Employees earning $150,000 and above will see a 23 percent increase for an individual and a 35 percent increase for the family plan.

"I'm extremely pleased with the feedback from the faculty and staff senates and feel we were able to take their suggestions and put them into practice with this new insurance structure," said Abercrombie.

There are no changes to the dental premium rates.