Vol. 19, State G
October 21, 2002
Program Administrative Fees for Employee Reimbursement
Accounts (ERA) Reinstated in 2003
The administrative fee for the Employee Reimbursement Accounts
(ERA) Program will be reinstated for plan year 2003. The administrative
fee will be 50 cents per month for each health plan contract that
has an employer-paid share reported to the Department of Employee
Trust Funds (ETF). This change is effective with the health summary
report due December 20, 2002 for January 2003 coverage.
Agencies should report the total fee (number of contracts x $0.50)
via the State Health Insurance Summary (ET-1608) form.
Even if an agency has no employees enrolled in the medical expense
or dependent care reimbursement portions of the ERA program, the
agency is still responsible for its share of ERA administrative
costs. For most state agencies, employer FICA savings due to pre-tax
funding of premiums, which remain in agency fringe benefit lines,
will more than offset ERA fees.
Administrative expenses incurred by the ERA program are funded
through three sources: account forfeitures, interest income, and
fees contributed by each state agency. The fee was suspended in
2002 in an effort to reduce the ERA reserve balance that had grown
to an amount that exceeded the targeted amount. The reserve fund
is now close to the targeted amount.
For more information about this fee structure, contact Marcia Blumer
at (608) 266-2640 or firstname.lastname@example.org. If you have
questions about reporting and transmitting the fee with the State
Health Insurance Summary (ET-1608) form, contact Ron Diehl,
Division of Employer Services at (608) 266-2737 or email@example.com.
Life Insurance Rates for State Employees Will Decrease
The claims experience for state employees insured under the Wisconsin
Public Employers Group Life Insurance Program has shown a steady
pattern of improvement over the past several years. The three-year
overall claims result for the period 1999 through 2001 was better
than the targeted result. Therefore, the Group Insurance Board recently
approved a reduction in premium rates for many age groups. Premium
rates will decrease for basic, supplemental, and additional insurance
in the age 40 through 49 and age 55 through 69 categories. In addition,
premium rates will decrease for all age categories for the Age 70
and Over Additional Insurance. Premiums for active State employees
will decrease by 6.9% overall.
The employer share of the premium will remain at 63% of the employee
premium for basic coverage and 35% of employee premium for supplemental
The spouse and dependent plan premium will also remain the same
at $2.50 per unit per month. The coverage for each unit of spouse
and dependent coverage will remain at $10,000 for a spouse and $5,000
for each dependent.
Effective March 1, 2003, the rates for State employees will be
For more information on the rate structure of the Group Life Insurance
program, contact Marcia Blumer at (608) 266-2640 or e-mail
firstname.lastname@example.org. If you have questions about reporting
life insurance premiums to ETF, contact Steven Berg at (608) 264-6637
or e-mail email@example.com.