The Elfun Medical Benefits Plan Committee
has completed our annual review with United Health Care, the plan
administrator.The review included
examination of current and projected premium income, claims payments, financial
status, administration expenses, cost trends and other relevant data.As most participants know, the plan is
self-supporting -- monthly premiums paid by participants fund all benefit payments
and plan expenses.
In 2009, participation increased slightly
to 22,900 people from 22,800 last year.We expect stable participation levels next year and for the foreseeable
future.
The Elfun Medical Benefits Plan provides
comprehensive coverage (after plan deductibles) for hospital, physician, and
prescription drug charges not reimbursed through Medicare Parts A and B and the
basic GE post-65 hospitalization and drug plans.The plan requires that participants have coverage under Medicare
Parts A and B, the GE Medical Care Plan for Pensioners, and the GE Pensioner
Prescription Drug Plan.The plan also
offers coverage for many services not provided under the basic GE plans,
including prescription drug benefits, dental preventive care benefits and medical
services received outside the United States.These extra coverages, which exceed and add to those available in the
basic GE plans, offer valuable benefits for our members.Of course, the cost for these added
protections is reflected in the plan premium.
The Committee has approved two changes to
the Elfun Medical Benefits Plan for 2010 to maintain the plan’s valuable
financial protections while minimizing rate increases:
The annual
plan deductible will increase to $400 per person (current deductible is $300).
The monthly
premium rate will be $135 per participant, up 4.65% from $129 this year.
The deductible is being increased for the
first time in more than 17 years.Our
committee concluded that this would be a sensible change to help hold down the
premium rate.Rising medical costs significantly
affect a plan like ours which generally pays 80% of covered after-deductible
expenses that are not paid by Medicare and the basic GE plans.The changes in the deductible and premium
will help us continue the excellent level of protection for plan members,
maintain the plan’s financial stability, and sustain the plan for the longer term.
