Know your benefits
Rate increase for Catastrophe Major Medical Insurance Plan
Jun 5, 2008 12:21 PM
UFT members who have purchased the Catastrophe Major Medical Insurance Plan, endorsed by NYSUT Member Benefits Trust, will experience a premium rate increase of 6 percent. The underwriting company, United States Life Insurance Company in the City of New York, has deemed this increase to be necessary due to high claim volume, particularly in the areas of nursing home and home health care.
The new rates become effective with coverage renewals on or after July l, 2008. There are different effective dates based on the payment method you selected. These effective dates are:
- July 1, 2008 — for participants who pay premiums on a direct bill basis.
- Sept. 1, 2008 — for participants who pay premiums through pension deduction.
- Nov. 1, 2008 — for participants who pay premiums through payroll deduction.
Some plan participants have a plan deductible of $15,000 with a one-year accumulation period; most have the $25,000 deductible with a three-year accumulation period. The $15,000 deductible plan is no longer offered to new applicants, but those who had it were allowed to keep it if they chose. These participants may wish to consider switching their deductible to $25,000 in order to save on premium costs. However, if any of these participants are currently in claim or are close to satisfying the $15,000 deductible, this may not be an opportune time to switch.
Participants paying their premiums via direct bill may wish to consider payroll or pension deduction. These payment options reduce the premiums by 10 percent.
For more information, contact the customer service department of the Catastrophe Plan administrator, Marsh Affinity Group Services, toll-free at 1-888-386-9788.
