Human Resources Policy and Procedure
Number 93.0: Health Care Plans
The University makes various health care plans available to certain regular and temporary employees, retirees and others as designated by the University Administrative Regulations.
1) The University health care plans are self-funded. The plan document entitled “University of Kentucky Medical Benefits Plan,” is available in the Human Resources Office of Employee Benefits (Employee Benefits) and on the Employee Benefits website at http://www.uky.edu/hr/benefits/.
2) The University offers several health care plans. All plans are not available in every location. The employee’s county of residence determines plan availability. The details of each health care plan are contained in a certificate of coverage (COC) or summary plan description (SPD). Copies of the certificates of coverage are available in Employee Benefits.
3) The University contributes a health care credit amount toward the cost of the monthly premium for enrolled regular full-time employees. Additional cost for the health plan in which the employee enrolls shall be paid by the employee.
4)An eligible employee may enroll in a health care plan available in the county where the employee resides. An employee may enroll in one of the following levels of coverage: employee only, employee + child(ren), employee + spouse or sponsored dependent, or or employee + family. Eligible dependents include spouse, sponsored dependent and unmarried children less than 25 years of age who continue to be dependent. Children of a sponsored dependent must reside with the employee.
5) Temporary employee eligibility is contingent upon the employee
6) Retiree eligibility for participation is contingent upon the following:
Note: Creditable health insurance is defined as any health plan that provides coverage for preventative, diagnostic and catastrophic health services; including, but not limited to, primary or specialty care physician services, inpatient and outpatient services and supplies, lab tests, x-rays and prescription drugs.
7) Beginning April 1, 2003, a retiree is permitted to “defer” the health benefit from the University at either the time of retirement or at a later date.
8) Upon approval for Medicare Part B retirees shall change current coverage to a supplemental retirement health plan (to be called supplemental plan).
9) In the event of the death of an employee who is not eligible for retirement, and who has a spouse and dependents and sponsored dependents enrolled in a University health plan, eligible dependents may continue coverage in the plan in accordance with the federal law, Consolidated Omnibus Reconciliation Budget Act (COBRA). In the event of the death of an employee who is eligible to retire under AR II-1.6, qualified dependents shall be eligible for continued coverage as outlined in numbers seven and eight of this policy.
10) The University has three separate groups for determining health plan premiums: active employees; pre-65 retirees and post-65 retirees (eligible for Medicare). Health plan premiums will be determined based on the actual claims experience within each group.
Administration of the University’s health care plan is a function of Employee Benefits.
1) Premium payments for an employee in a pay status shall be made through payroll deductions.
2) An employee going into a no pay status and who is enrolled in a health plan shall make arrangements with Employee Benefits to pay the plan’s premiums, or coverage terminates.
3) Generally, the employee’s premium contribution is paid under the Internal Revenue Service Code Section 125 on a pre-tax basis. Sponsored dependent deductions will be on an after-tax basis unless the sponsored dependent and dependents on the plan meet the pre-tax requirements of the IRS. Employer contributions to the plan will be “taxable benefits” for sponsored dependent coverage that is not eligible for pre-tax benefits.
4) An employee who loses eligibility for coverage because of termination of employment is eligible to continue coverage for a period as defined by COBRA at the employee’s expense.
5) Information explaining the costs, billing procedures and maximum coverage period shall be sent to persons eligible for COBRA by Employee Benefits.6) Eligible community college employees wishing to enroll in one of the health care plans may obtain current brochures and/or enrollment forms from the business officer or the president's office at the college where they are employed or the KCTCS administrative offices.
Previous Version (Revision Date - 04/01/06)