Wayne State University

Aim Higher

Policies-8

2.1 Insurance

GROUP DENTAL INSURANCE PLAN

Dental insurance coverage is currently provided by the University at no cost to all staff members, their enrolled spouses and dependents. Such coverage is effective on the first of the month following six months of University employment.

 GROUP LIFE INSURANCE PLAN

Life insurance benefits are paid to the designated beneficiary(s) regardless of the cause of death. Benefits are doubled if death is the result of an accident, tripled if accidental death occurs on a common carrier as a fare-paying passenger. Dismemberment benefits are paid for loss of sight, body members, etc., according to the Master Contract. An optional emergency, partial life insurance benefit payment of up to $2,500 of the basic non-contributory group life insurance policy is provided to a legal beneficiary(s)within twenty-four hours of proper notification of death to the Benefits Administration Department.

Non-Contributory Group Term Life Insurance

All University personnel are provided $25,000 non-contributory life insurance coverage immediately upon employment.

Supplemental Group Term Life Insurance

Additional amounts of group term life insurance may be purchased by the University staff member at subsidized rates. This insurance may be purchased in (1) an amount equal to the staff member's annual salary, or (2) an amount equal to twice the staff member's annual salary, rounded up to the nearest $1,000. The per thousand dollar cost of supplemental group term life insurance is governed by the staff member's age. The maximum coverage available including non-contributory coverage is $300,000.

 LONG-TERM DISABILITY INSURANCE PLAN

Full time General Service Support personnel become participants in the long-term disability insurance plan upon completion of five calendar years of service.

All other full time staff participate in the long-term disability insurance plan upon completion of three calendar years of service or after one year of University tenured service, whichever occurs first.

The waiting period is waived for new full time staff members who provide formal verification that they were, within the last three months prior to receiving a University appointment, insured through their previous employer under a group disability insurance plan which provided income benefits for a minimum period of five years for total disability due to illness or injury. An employee who is enrolled in the plan and then reduces their work schedule but is still at least 50% time will continue to be covered by the plan. For Senior Administrative Officers, Non- Academic Administrators, Academic Administrators, Professional- Administrative Personnel, Faculty and Professional Research Personnel the monthly income benefit, including any benefit from Social Security and/or Workers Compensation, is equal to 60% of the staff member's basic salary, not to exceed a monthly benefit of $2,500. The income benefit is subject to increase 3% each year during disability.

For all others, the monthly benefit, including any benefit from Social Security and/or Workers Compensation, is equal to 60% of monthly salary, not to exceed a monthly benefit of $2,000. The income benefit is subject to increase 3% each year during disability.

The monthly income benefit is not at any time less than $50.The long- term disability insurance is provided at no cost to the employee.

Total disability for the purpose of the University's long-term disability insurance plan means the inability of the staff member, by reason of illness or bodily injury, to engage in any occupation for which he/she is reasonably fitted by education, training or experience.

Benefits Protection During Long-Term Disability Leave

Employees on long-term disability leave approved by the long-term disability insurance plan carrier are entitled to:

  1. Continued coverage by the group life insurance plan without further premium contributions for coverage in effect on the last day service.

  2. Retirement plan contributions required of the participating employee and contributions made by the University are provided by a University insurance policy based on salary in effect on the last day of service.

  3. Upon written request, medical insurance coverage may be continued with premium cost sharing as provided for active staff members.

  4. Tuition reduction for dependent children less than twenty-six years of age, as defined in the Tuition Reduction Program (section 2.6).

 GROUP MEDICAL INSURANCE PROGRAM

The University's group medical insurance program is available to staff members, their spouses, and dependents, with coverage through Blue Cross/Blue Shield of Michigan, the Health Alliance Plan (HAP), the Select Care Med Extend (SCM), the Blue Care Network (BCN), and Omni Care.

The University subsidizes, in part, the cost for the group medical insurance plan. Such partial subsidy is based upon the cost of Blue Cross/Blue Shield of Michigan plan premium rates. The premium charge by Blue Cross/Blue Shield for out-patient mental health care in excess of 3.15% of the base premium is not considered part of the subsidy and is thus fully assumed by the staff member. In addition, 50% of any BCBS increase after June 30, 1987 will be fully assumed by the staff member. Premium cost information is available from the Benefits Administration Department.

New University staff members eligible for the group medical insurance plan should apply within 31 days of the effective date of employment. The staff member who fails to apply within the first 31 days of University service is required to wait until the first of the month following 90 days of University service if coverage is sought under the Blue Cross/Blue Shield of Michigan or the Health Alliance Plan. If coverage is not sought under the Select Care Med Extend, Blue Care Network or Omni Care within 31 days of employment, participation can only be effected during an open enrollment period following the date of employment.

If an application is completed during the first 31 days of employment, coverage under the University group medical program becomes effective on the first of the month following the date the staff member became employed provided the new staff member is not absent or disabled on such date. Should such condition exist, coverage becomes effective on the first day on which the staff member is actively at work on his/her regular schedule.

Non-represented employees who can submit proof of medical coverage under an alternate health insurance plan (i.e., coverage under a spouse's plan), may elect to drop out of the University's coverage and receive $60 per month as a buy-out payment from the University. In the case of the death of the person with whose insurance plan the employee maintained coverage or in the event of a divorce if the employee maintained coverage under a spouse's plan, employees can be reinstated in University coverage on the first day of the month following application provided sufficient documentation is submitted to the Benefits Administration Department.