To: Members Insured in the NLTA Group Insurance Plan
From: Tracey Payne, Chairperson, NLTA Group Insurance Managers
Re: Group Insurance Rate Changes for 2022-2023
Group Insurance Managers would like to advise members of some important information regarding Insurance Premiums for the 2022-2023 fiscal year. This process involves matching premiums with anticipated claims and expenses.
The total Basic Life Insurance rate will decrease by 9.3%. This will translate to a decrease of $0.56 per pay period, down from $4.40 to $3.84 for a member with an $80,000 salary/pension or $0.35 per pay period down from $2.75 to $2.40 for a member with a $50,000 salary/pension. Dependent Life will also see a 7 cent decrease to $0.70 per month. Voluntary Life Insurance will see a decrease of approximately 10% while Post-65 Life Insurance will see no changes.
Premium rates for Basic and Voluntary Accidental Death and Dismemberment, and Long-Term Disability will not be changing.
Basic Critical Illness and Voluntary Critical Illness premium rates will decrease by approximately 16%.
Health Premiums continue to be a concern for Group Insurance Managers. As indicated in previous memos, the cost of our Health Program has been increasing at approximately 5% per year. While previous years’ savings will be used to reduce the projected increase in Health costs, this year we are projecting a significant deficit. In response to membership feedback received this past fall, Managers have made a change to vision care. The plan will now pay 80% for frames, lenses, and the fitting of prescription glasses to a maximum of $175 in any two consecutive calendar years for adults, up from $125 every three years. The net result will see Health costs increase (~8.7%) by $5.41 per pay period for single coverage and $8.97 per pay period for family coverage. Group Insurance Managers did receive input from members this past fall through online surveys, telephone interviews and focus groups, and efforts to inform and engage members as Managers continue to explore future options for maintaining critical coverages while controlling costs will continue during the 2022-2023 fiscal year. Group Insurance Managers are concerned about the increasing cost of our Health coverage but also recognize that our program has been deliberately designed to ensure our members have superior access to lifesaving and life enabling Health Insurance protection.
As Managers explore different options, additional communication will be sent to members.
Dental Premiums will also be increasing this year and Managers have decided to use the previous years’ surplus to reduce the increase in rates for members while recognizing there is a projected deficit this year. After applying the subsidy, the increase will be approximately 5.55%, raising member premiums by $1.09 for single coverage per pay period and $2.19 per pay period for family coverage. Effective May 1, 2022, Managers have also decided to move the rates for dental claim reimbursement to the current Newfoundland and Labrador Dental Fee Guide.
For the 2022 update overview, that includes the current 2022-23 premium rates, please click HERE.
For complete information on premium changes please click HERE.
For additional information related to group insurance please check out our website at https://groupinsurance.nlta.ca/