State of Arizona is moving to a self-health-insurance model

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.”

Though some employees have expressed confusion over the move to self-insurance, Cervantes says the new self-insured plans will be indistinguishable from the current fully-insured plans to employees.

“Self-insurance is only the funding mechanism for our new plans,” Cervantes says. “By cutting out the ‘middle man,' the state (and ASU) will be able to lower overall costs and have the ability to choose and offer more options to our employees.”

This year, ASU's open enrollment will be an online, paperless enrollment. To accommodate employees who do not have access to a computer at work, Human Resources will have locations available throughout each campus. Times of availability will be posted by Human Resources, as well as times when personal assistance will be available for those needing help enrolling in benefits. In addition, arrangements can be made with Human Resources for anyone requiring additional assistance.

“Employees may have unanswered questions, and our priority is to help clarify these changes so our employees can make well informed choices,” Cervantes says.

ADOA will have a comprehensive list of the participating physicians on the Arizona Benefit Options Web site (www.benefitoptions.az.gov) by early July. In addition, ADOA will post additional information about each of the new network providers on the Web site.

Information will be shared with ASU employees through the Human Resources Web site, open “Town Hall” forums, constituent meetings, ASU Insight and various campus newsletters between now and open enrollment.

For the latest information, visit the ASU Human Resources Web site at: (http://www.asu.edu/hr/).