Memo on Premium Rate Adjustment for Extended Coverage of Adult Children

Date: July 13, 2010

To: All Benefits-Eligible UVM Faculty and Staff

From: Barbara L. Johnson, Associate Vice President, Human Resource Services

Re: Premium Rate Adjustment for Coverage of Adult Children to Age 26

Summary: As a result of the extension of coverage to adult children up to the age of 26, medical premiums will be slightly higher than the rates published in April for all plan participants in the categories of “Employee and Children” and “Employee and Family.”

As described in my memo of June 2, the Healthcare Reform (“Affordable Care Act”) signed into law in March requires certain employers to allow coverage for adult children on their parent’s health insurance until they reach age 26. In that correspondence, I confirmed UVM’s decision to comply with the new law:

  1. By conducting a special enrollment of eligible adult children for coverage effective October 1, 2010; and
  2. By allowing children who would have “aged out” of coverage in their parent’s plan this past spring or later to continue coverage uninterrupted, retroactive to April 1, 2010.

Blue Cross and Blue Shield of Vermont has determined the additional premium cost associated with this extended coverage, which will affect all plan participants in the categories “Employee and Children” and “Employee and Family.” (There is no change in premium rates for “Employee Only” or “Employee and Spouse” coverage.) Affected Blue Cross plan participants will see adjustments to their premium rates effective with the start of the new plan year, July 1, 2010. Their July 15 paystub information will reflect the change in premium amounts. Compare the rate charts on the HRS web site for more specific information.

MVP Healthcare is still in the process of getting State approval for its new rate plan. MVP participants should note that adjustments to their premium rates will not take effect until October 1, 2010—but MVP will withhold nine months of increased cost over a nine month period, whereas Blue Cross will spread out nine months of increased cost over a twelve month period.

These adjustments represent no change in the cost-share percentages associated with each coverage category; you will still pay the same percentage of the total cost that you have been paying. The rate change represents only your portion of the additional shared premium cost for adding the newly-eligible adult children of UVM parents to the plan. We will keep the UVM benefits-eligible community informed as we learn more about the provisions of the Affordable Care Act and how the UVM benefits plans will be affected. In particular, please watch for the details of the special enrollment period for adult children who will be eligible for coverage effective October 1, 2010.

See the Healthcare Reform Update page on the HRS web site for more information. Please e-mail the HRS Employee Information Center ( if you have questions or concerns.