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Employee Benefits issues annual deadline reminders

The Office of Human Resources, Employee Benefits Division, reminds faculty and staff members of the following information and deadlines:

Flexible benefits reimbursements

Flexible benefits requests for reimbursement for services incurred in calendar year 2004 must be submitted on or before March 31. Reimbursements are based on the date that the service occurred, not on the date of payment, so only services from Jan. 1 through Dec. 31, 2004, are eligible. Employees can check their flexible benefit balance amount and claim activity online through the Employee Self Service Information System (ESSIC) at http://www.ohr.psu.edu/benefits/benefits.htm online.

Major medical claims

March 31 also is the last date HealthAmerica and Aetna will accept major medical claims from University faculty and staff members or their dependents for 2004 Healthpass (Aetna's Open Choice Plan) and Plan A charges.

Employee Assistance Program

The Employee Assistance Program (EAP) provides confidential counseling sessions for University faculty, staff and members of their household. Up to three visits per problem situation are paid for by the University. With the exception of the College of Medicine, the EAP provider for Penn State faculty and staff is Value Options. To receive a free consultation, contact the Penn State EAP at (866) 749-1735. Employees in the College of Medicine at Hershey Medical Center can call (800) 543-5080.

SERS statements

The annual statement of account that each State EmployeesRetirement System (SERS) participant receives will be mailed to the participants home address again this year. In order to receive statements in a timely manner, employees need to make sure their home address information is current. The only method of changing a home address is to complete a new W-4 form through the Payroll Department or on line through ESSIC, the Employee Self Service Information Center. The link to ESSIC is on the Employee Benefits Division Web site at http://www.ohr.psu.edu/benefits/benefits.htm

Tax deferral maximums increase

Federal tax legislation authorizes an increase to the annual amounts that faculty and staff may contribute to a tax-deferred annuity (403(b)) and to a deferred compensation plan (457(b)). For 2005 calendar year, TDA participants are limited to 100 percent of their salary or $14,000, whichever is less. Participants who are age 50 or older, including those who will reach their 50th birthday this year, may contribute an additional $4,000 as part of a catch-up provision. Both the $14,000 basic limit and the $4,000 catch-up amount are scheduled to increase by $1,000 each year through 2006.

Contribution amounts will not increase automatically. Faculty and staff who wish to take advantage of the increased maximum contribution levels must complete a new voluntary salary reduction agreement form. The form for both the 403(b) and 457(b) deductions is available for download from the Employee Benefits Divisions Web site at http://www.ohr.psu.edu/benefits/Salary%20Reduction%20Agreement%20A.pdf

Contribution amounts may begin or may be changed at any time during the year. Voluntary salary reduction agreement forms are due in the Employee Benefits Division office by the first business day of the month in which contributions are to begin or in which the new contribution amount is to be effective.

Medical plan ID cards

Faculty and staff are encouraged to present their current medical plan ID card during their initial visit to a health-care provider or when filling a prescription at the pharmacy. Many health-care providers require a copy of the individuals health-care card each year to verify coverage and to note any changes in co-pays.

Prescription drug benefit

Faculty and staff who are enrolled in the Penn State Choice plan or in any of the University-sponsored HMOs can save money when filling prescriptions for maintenance drug prescriptions designed for long-term use to treat a chronic condition. When filling such prescriptions at local participating pharmacies, participants pay 50 percent of the cost of the drugs, which are limited to a 30-day supply. However, when using the mail-order benefit for purchase of maintenance drug prescriptions, participants pay only 20 percent of the cost of a 90-day supply.

HealthAmerica HMO participants are eligible to purchase maintenance drugs through EnvisionRx Services in partnership with Walgreens mail order pharmacy. New prescriptions are necessary and can be mailed by the participant or faxed by the prescribing physician. HealthAmerica HMO members who previously were using the Penn State MPDP plan through University Health Services Pharmacy may refill existing eligible prescriptions through the MPDP until March 31. New maintenance prescriptions must be filled through EnvisionRx services. Prior authorizations that were approved by HealthAmerica for specific individuals have been forwarded to EnvisionRx and Walgreens.

All faculty and staff who are enrolled in the other University sponsored HMOs (Aetna, First Priority, Geisinger, Keystone) can access a 90-day maintenance drug supply through the Penn State MPDP program and pay 20 percent of the cost. Alternatively, those individuals can continue to use the 50/50 program at their local participating pharmacies.

All University health plans use a prescription drug formulary, which is a list drugs approved for coverage under the health plan. For more detailed information about the prescription drug benefit, check http://www.ohr.psu.edu/benefits/choose/prescription_drug_questions.htm on the Web.

Last Updated March 19, 2009

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