Medical Plan Premiums & How to Save on Medical Expenses

We know that managing medical costs is a concern for many—it is for Purdue Global as well. It’s one of the reasons we’re switching our medical coverage to UMR in 2023. This change helps ensure you receive quality care at the most affordable rate possible. Unfortunately, you’ll still have an increase in premiums. Medical premium increases are unavoidable in this current national climate, and most Americans will experience higher medical plan premiums in 2023.

In this email, you’ll find information on:

• How premiums are determined
• New wellness incentive program to help offset your costs
• Importance of having a primary care provider in managing your health and costs

Dates to know:

• September: Purdue Global benefit website updated with 2023 benefits

• Oct. 25 – Nov. 8: Open enrollment period for 2023 benefits

How Premiums are Determined

Your share of medical plan premiums will increase 6% next year. This is in line with the national average. In fact, some industry analysts expect the hike in medical plans premiums to be between 5-14%*, putting Purdue Global on the low end.

To understand why premiums are increasing, it’s helpful to know how they are determined. The main factors for the rise in medical plan premiums are:

• Inflation: One of the main contributors to premium growth is “health cost trend,” that is, the rising prices paid to providers and pharmaceutical companies.
• Increased usage: During the pandemic, many paused seeking medical care. Now, it’s rebounding, and as a result, utilization of various healthcare services is increasing. In some cases, this is resulting in new (or advanced) diagnoses and more claims.
• Prescription costs: Prescription drug costs are expected to be the highest they’ve been in the past decade**.
• Additional factors: Other factors in determining premiums include age, location, tobacco use and individual vs. family enrollment.

Source

*https://www.healthsystemtracker.org/brief/an-early-look-at-what-is-driving-health-costs-in-2023-aca-markets/how

**https://www.kiplinger.com/personal-finance/inflation/605084/what-will-happen-with-health-costs-in-2023

Wellness Program: Earn $ for Making Healthy Choices

To help you manage your costs, we’re introducing a new wellness incentive program! We’ll reward you (and your covered spouse) for getting your annual physical. Not only does this ensure you get a yearly look at your overall health, but it also puts money in your wallet to pay for expenses.

To receive this reward:

• Get your physical between January 1, 2023, and December 31, 2023.
• Complete the wellness incentive form which will be shared later in January 2023.

• Submit the form – the submission process will be shared in January 2023.

• Earn cash! You'll earn the incentive the month after you submit your form. Consider using these funds to off set future healthcare expenses.

Why You Need a Primary Care Provider

Developing a relationship with a primary care provider (PCP) is vital to your health. PCPs catch potential health problems early before they become severe. And people with a PCP tend to spend less time in the hospital, less money on medical costs and have a greater chance of identifying any issues early.

If you don’t have a PCP, we encourage you to find one.

• Go to umr.com and select “Find a provider”
• Search for UnitedHealthcare Choice Plus Network or type UnitedHealthcare Choice Plus into the search box
• Choose View Providers

Enrollment Reminders

You are encouraged to review all benefits and actively enroll for 2023 benefit coverage.

Save the Date: Open Enrollment Presentations

We'll cover what you can expect during open enrollment and discuss topics like medical and prescriptions benefits, voluntary plan options and more. There will also be time for a Q&A session.

• Monday, Oct. 3 at 2 p.m. EST
• Wednesday, Oct. 5 at 5 p.m. EST
• Thursday, Oct. 6 at 2 p.m. EST
• Friday, Oct. 7 at 12 p.m. EST
  

Look for the sign-up in future weekly emails.

hr@purdue.edu           purdue.edu/hrhelp