MEMORANDUM

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DATE: May 17, 2002

FROM: David J. Lindstrom, Associate Director for Administrative Services

TO: Penn State Graduate Assistants and Fellows

RE: Health Insurance Information for Fall Semester 2002

Penn State negotiates a health insurance plan available to all students and, as part of that process, developed a special insurance program available only to graduate assistants and graduate fellows. This new Penn State Graduate Assistant and Graduate Fellow Health Insurance Plan is modeled after various components of the health insurance plans available to Penn State full time employees.

Over the course of the last two years, the University Student Health Insurance Administrative Council has met to discuss ways to continue to improve health insurance available to students. Between 1999 and 2001, members of the Student Health Insurance Council met with key student groups representing graduate students, international students and undergraduates as well as key faculty members. Among the greatest concerns of graduate assistants were the issues of expanded scope of health insurance coverage and university subsidy of premium costs for families.

The changes in the health insurance plan available to graduate assistants and fellows (GAs/fellows) will increase the maximum annual per-incident benefit from $250,000 to $500,000. Other changes in the plan include a pharmacy benefit that pays for 80% of the cost of any medication for a covered illness or injury when the prescription is filled by the University Health Services pharmacy in the Ritenour Building. GA/fellow policyholders at other Penn State locations will have direct mail service available for non-acute medication.

Other benefit enhancements include payment for more preventive services and other expanded benefits. Within the next month, the complete details of this plan will be available on a web site linkAugust 27, 2007a.psu.edu/uhs/insurance.htm].

As in previous years, Penn State will pay 80% ($799.20) of the annual premium expense for students enrolled in the GA/fellow plan. The remaining 20% ($199.80) will be deducted on a monthly basis from your paycheck. This monthly deduction will be $19.98 for a single student on a 10-month graduate assistantship. Only those students who have completed a contract as a GA or have a fellowship appointment for the academic period in question are eligible for the University’s subsidy of the Penn State Graduate Assistant Graduate Fellow Health Insurance Plan.

Your insurance coverage will be continuous throughout the summer months if you are a GA or fellow for both the fall and spring semesters. Your previous monthly deductions will assure you have insurance coverage over the summer months even if you are no longer paid as a GA or fellow (some GAs and graduate fellows are paid under separate wage payroll arrangements during the summer).

Penn State Graduate Assistants and Fellows

New for 2002 will be a 70% subsidy of all premium costs for an eligible spouse and children. Penn State will pay 70% ($1,890.70) of the annual premium cost for an eligible spouse and 70% ($1,210.30) of the annual premium cost for eligible children enrolled in the Penn State Graduate Assistant Graduate Fellow Health Insurance Plan. The remaining 30% ($810.30 for spouse and $518.70 for one or all children) will be deducted monthly from your paycheck if you sign up for dependent insurance coverage. If you have a spouse and child your monthly payroll deduction to cover you and your family will be $152.88.

All GAs/fellows will be automatically enrolled in the Graduate Assistant Graduate Fellow Health Insurance Plan. If you would like to enroll your spouse and eligible children in the health insurance plan, please report to the Student Insurance Office at 320 Grange Building, University Park, PA. The deadline for dependent enrollment is September 16, 2002. The staff there will assist you with the spouse and child enrollment process. This procedure also applies to GAs/fellows who are required to have health insurance for their spouse and accompanying children as a result of their status as an international student.

GAs/fellows will have the option of declining to enroll in this health insurance program unless the GA/fellow is required to have insurance as a result of their status as an international student. The requirements for health insurance for international students and their accompanying spouse and children will not change at Penn State for the 2002-2003 academic year. If a GA/fellow wishes to decline enrollment in the health insurance plan, you must contact the student insurance office to make arrangements to sign a declination agreement. The deadline to sign this agreement is September 16, 2002.

For more information, don’t forget to check the Student Insurance web site over the next few months. When the final brochure is ready for publication, it will be available on that web site. As special questions or concerns arise, the Student Insurance Office staff will

include that information on their web site so you can access the facts as quickly as possible.

A vision plan through National Vision Administrators (NVA) is available to graduate assistants and graduate fellows and their dependents. Penn State pays 100% of the premium of the NVA plan for GAs/fellows and their eligible dependents. You may enroll for the plan at the Student Insurance Office.

DJL/sme