To: Members Insured in the NLTA Group Insurance Plan
From: Tracey Payne, Chairperson, NLTA Group Insurance Managers
Re: Group Insurance Rate Changes for 2023-2024
On behalf of the NLTA Group Insurance Managers, I wish to inform you of the details of the annual Group Insurance Renewal that will become effective during your April payroll deductions. Each year, the various insurance policies are renewed with the insurance underwriters and the premium rates must be set at a level sufficient to pay the claims plus expenses predicted for the next insurance policy year.
Specifically, the following decisions were made by your Group Insurance Managers.
There is no change to the Dependent Life, Voluntary Life or Post-65 Life Insurance rates.
Premium rates for Basic/Voluntary Accidental Death and Dismemberment, and Long-Term Disability will not be changing.
Basic Critical Illness and Voluntary Critical Illness remain at their current rates.
While the total Basic Life Insurance rate payable for our program remains the same, the actual Teacher/Retiree cost sharing goes up very slightly as a result of our rate cost sharing agreement with the employer. This translates in an increase of $.08 cents per pay for a member with an $80,000 salary and $.05 cents per pay for a member with a $50,000 salary/pension.
Health Premiums continue to be a concern for Group Insurance Managers. In addition to considerable inflationary and cost trend pressures, costs have also increased as a result of the plan’s improved vision care benefit implemented last year as a result of member surveys and subsequent Managers’ decision to improve this benefit. The plan now pays 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.
Managers have elected to continue to subsidize member’s Health Insurance premium at a rate of $3.50 for single and $7.00 for family per month.
The net result will see Health costs increase by $6.43 per pay period for single coverage and $12.24 per pay period for family coverage.
Group Insurance Managers continue to seek information with respect to options for the future to provide the best services to members while protecting the long-term financial stability of the plan at affordable rates. Managers remain concerned about the increasing cost of our health coverage but recognize that our program is deliberately designed to ensure access to lifesaving and life enabling protection for our members.
Dental Premiums will also be increasing this year. The most significant factor in the premium change is the 8.5% overall increase in the 2023 Newfoundland and Labrador Dental Fee Guide, effective January 1, 2023. Given this significant increase, Group Insurance Managers have decided to maintain a subsidy for the dental plan. The monthly subsidy remains at a rate of $1.30 single and $2.60 family.
After applying the subsidy, member Dental premiums will increase by $2.19 for single coverage per pay period and $4.40 per pay period for family coverage.
For the 2023 update overview, that includes the current 2023-24 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/