Several Benefit Changes Take Effect This Summer


Three significant changes have been made to the benefits 
program at Iowa State. They are summarized below.


PRESCRIPTION DRUGS
Beginning July 1, ISU employees who are covered by the PAT 
1000 Health Plan with Principal Mutual will be able to get a 
reduced rate on prescription drugs. New prescription drug 
cards will be issued by Principal Mutual and a group of 
affiliated managed care pharmacies. Present your card when 
you have your prescription filled at a member pharmacy, and 
not only will you receive a reduced rate, the pharmacist will 
submit your claim for you. You will be reimbursed by 
Principal Mutual according to normal plan benefits. All 
pharmacies in Ames and a majority of them throughout the 
state are participating in the plan. You still will need to 
file your own claim if you have your prescription filled at a 
non-participating pharmacy. When details of the service are 
finalized, they will be sent to current participants.


LONG-TERM DISABILITY
Beginning July 1, the maximum salary covered by Iowa State's 
Long-Term Disability Policy will increase to $150,000. In 
addition, those covered by the policy will have a six-month 
period (currently it is three months) in which they can 
attempt to return to work full time without having to re-
establish the 90-day waiting period if they become disabled 
again for the same condition. The longer trial period gives 
employees a better idea if their recovery is temporary or 
permanent. Also, a new definition of disability eases the 
standards to qualify for the 90-day waiting period and allows 
employees who are able to work part-time to receive benefits. 
More details on these changes will be sent to all covered 
employees.


MERIT HEALTH PLANS
Merit employees covered by State of Iowa health care plans 
(Plans I, II, III and Select 2000), will receive $13 per 
month for 12 months, beginning Aug. 1. This is money the 
state agreed to pay to all Blue Cross Blue Shield contract 
holders under terms in the collective bargaining agreement. 
This money will not be added to employees' base salaries and 
will be subject to federal, state, FICA and Medicare taxes 
and retirement contributions. The extra income is due to a 
change in the way the health plans treat infertility 
services.

Under the collective bargaining agreement, Merit employees 
enrolled in plans I or II are being encouraged to switch to 
State Plan III or Select 2000. Those who change during the 
current enrollment period will receive an extra $25 (single 
plan participants) or $50 (family plan participants) for the 
next 12 months.

Merit employees have received more information on these 
changes.

_____
Contact:  Gary Wiggins, (515) 294-7680
updated:  6-16-95