In an effort to enhance health insurance benefits for its 70,000 employees, the state of Arizona is moving to a self-insurance model. The new program, Arizona Benefits Options, replaces the current Saguaro program effective Oct. 1, 2004.
The Arizona Department of Administration (ADOA) has recently announced the program's new insurance providers: Arizona Foundation, Beech Street, Rural Arizona Network/Arizona Medical Network, Schaller Anderson and UnitedHealthcare.
Open enrollment for health insurance benefits runs Aug. 2 through Sept. 10 and ASU employees may be pleasantly surprised by new insurance plan details — specifically, more provider choices and affordable rates.
Christine Cervantes, director of the Office of Human Resources, says the long-awaited insurance news is very good.
Employees will be able to choose an Exclusive Provider Organization (EPO) or a PPO (Preferred Provider Organization). The EPO provides services like an HMO where participants select a primary care physician who manages all the patient's health care needs. The PPO plan provides flexible access to care without a primary care physician.
Employees residing in Maricopa, Pinal and Gila counties can choose from three EPO networks and two PPO networks. The EPO networks are Rural Arizona Network/Arizona Medical Network (RAN/AMN), Schaller Anderson Network and United Healthcare. The PPO networks are Arizona Foundation Network and United Healthcare. The Beech Street Network is providing an out-of-state employee PPO plan.
Monthly premiums for the state's EPO plan will be $25 for single and $125 for family (state contribution is $312 and $718 respectively). Employees who choose the PPO plan in Maricopa, Pinal and Gila Counties will pay $140 for single and $390 for family. Premiums in the Pima and Santa Cruz Counties, are the same for PPO single and family. The out-of-state PPO single premium will be $25 and $125 for family.
The dental care providers will remain the same as those currently offered: Delta Dental, Employers Dental Services, MetLife Dental and Assurant Dental (Fortis). Premiums for Fortis and MetLife remain the same, and Delta and EDS premiums will increase slightly.
Gaye Murphy, associate director for ASU Budget Planning and Management, serves as chair of ASU's Committee on Retirement and Insurance, and says that overall she is pleased with the rates.
“My first impression is that there are a lot of things for employees to be happy about,” Murphy says. “It looks like we will have the same basic health benefits at no higher cost for employees. The cost for PPO coverage actually will decrease and that has been a really big concern for a number of our employees. I am also happy to see more provider choices.”
Murphy says the Committee on Retirement and Insurance is working on improving benefits in the future.
“As a committee, we have heard from employees who are very interested in options such as domestic partners and employee plus one coverage,” she says. “We will continue to work with ADOA on these and other issues important to employees.”