Total Compensation Bulletin: FY21

SB5012 (Special Session) amended the effective date of SB207 providing up to 120 hours of paid postpartum recovery leave to eligible employees, delaying the effective date from July 1, 2020 to July 1, 2021.  This bill requires a state employer to allow an eligible employee to use up to 120 hours of paid postpartum recovery leave based on a 40-hour work week for recovery from childbirth. An eligible employee who is part-time or who works in excess of a 40-hour work week or its equivalent, shall use the amount of postpartum recovery leave on a pro rata basis.

The original bill appropriated funds to the Department of Administrative Services (DAS) and requires DAS to return unused funds designated for this purpose to the General Fund. The Special Session delayed appropriation of funds to July 2021.

No legislative salary increases were approved for FY21 at the conclusion of the Special Legislative Session in June 2020. Career ladder increases have historically been funded through turnover savings, which were committed to give back to the Legislature for FY21 only, in response to the budget cut request from the Legislature. Additionally, the special legislative session clarified the salary of a district court judge would not increase for FY21, contrary to the plan at the end of the General Session. The appropriations bill (SB5001) from the special legislative session may be found here. 

SB008 provided continued funding for 401(k) employer match up to $26 per pay period for qualifying state employees.

• SB008 funds the state’s portion of the health insurance premium increase. Employee premiums increase by approximately 4.53% for all plans except STAR (Summit and Advantage Networks) and Consumer Plus (Summit and Advantage Networks)

• HB207S02 allows a Pharmacist to dispense insulin for an expired prescription, and allows for dispensing of the therapeutic equivalent for diabetes test strips, lancets, syringes and a glucometer (effective 5/12/20). Also directs PEHP to purchase insulin at discounted prices and instructs PEHP to create a discount insulin program available to all Utahns (effective 1/1/21).

• HB214S01 is effective on January 1, 2021, and directs PEHP to cover certain in-vitro fertilization (IVF) procedures, including testing of an embryo, for an employee and partner who have been diagnosed with a genetic trait for cystic fibrosis (CF), spinal muscular atrophy (SMA), Morquio Syndrome, myotonic dystrophy or sickle cell anemia. Also allows the couple to elect IVF in favor of natural conception to reduce the chances of a child born with the parents’ disease.

• SCR502S01 Refunds excess reserves from the state health insurance risk pool by 7/1/20 for the state (employer) and by 7/15/20 for state employees.

• SCR10 Refunds excess reserves from the state health insurance risk pool by May 1, 2020. Provides state employees with more options to choose between cash and benefits. Employees may choose to opt out of medical coverage if they have other active medical coverage. The state will give the employee $2,000 for single or $4,000 for double or family coverage. This additional compensation is subject to tax and other benefits such as retirement, workers’ compensation, and LTD. This election is made annually during open enrollment. Also allows employees on the Consumer Plus plan to have the ability to convert 100% of their HSA to cash (employee pays all related taxes). This cash conversion option does NOT impact other benefits such as retirement, worker’s compensation, and LTD. This bill adds a premium share to STAR HSA plan; but increases HSA state contribution by the same amount in the first year. The bill creates HSA-based dental plans which provides a lower benefit in exchange for an additional HSA contribution. Employees with proof of other dental insurance coverage may opt out of state dental coverage in return for cash: Single $100, Double $200, Family $400. This additional compensation is subject to tax and other benefits such as retirement, workers’ compensation, and LTD.

• Medical Premiums. See tables provided below.

• Vision Premiums. Full breakdown of premium changes found in tables provided below. Highlights include an overall decrease in EyeMed premiums, a decrease in Opticare for the full family vision plan, and an increase in Opticare full vision and eyewear only plans. 

Traditional and Preferred Choice premiums remain the same except the Traditional family plan, which increased by $0.01 on a bi-weekly basis. Regence Expressions plans have decreased.

Two new Dental plans have been created starting in FY21:

Basic HSA Dental

• No employee premium

• Covers preventive, diagnostic services, and fillings

• No coverage for orthodontics, major services, prosthodontics, etc.

• Yearly employer HSA contributions: Single $75, Double $140,

• Family $255

Discount HSA Dental

• No employee premium

• No dental insurance

• Pay out of pocket with access to PEHP in-network discounts

• Yearly employer HSA contributions: Single $235, Double $430, Family $785

If the Basic or Discount HSA dental is chosen, the employee will have a three-year waiting period before they can elect Traditional or Preferred dental plans. The HSA dental plans require the employee be active on either the STAR or Consumer Plus medical plans. If an employee is only eligible for an HRA they are not eligible for the HSA Dental Plans.

These new dental plans were created under SCR10.

Intermountain Connect Care is now available for all PEHP members on all networks. With Connect Care, you pay nothing if the tele-doc is unable to assist you.

University of Utah E-Care is now available to PEHP members on the Summit and Preferred networks.

Traditional plan is $10 per "virtual visit." STAR/Consumer Plus is $49 per visit, or $10 after meeting deductible.

Employees may choose to receive an HSA contribution or cash.

• Up to one-half of the state’s HSA contribution on the STAR Plan.

• Up to 100% of the state’s HSA contribution on the Consumer Plus plan.

• Cash must be taken in 25% increments as taxable compensation to be distributed twice per year at the same time as the HSA contribution.

The first half of the HSA contribution will be distributed by the end of July 2020 and the second half by the end of January 2021. Maximum contribution limits for 2020: $3,550 (single), $7,100 (double/family).

Bi-annual State HSA Contribution for STAR plan:

• Single $454.61

• Double $913.38

• Family $959.27

Bi-annual State HSA Contribution for Consumer Plus Plan:

• Single $912.34

• Double $1824.81

• Family $1824.81

Employees who do not qualify for an HSA, but choose the STAR or Consumer Plus plans are eligible for an HRA to be distributed at the same time and in the same amount as the HSA. However, an HRA is NOT eligible for the cash conversion options available for HSAs. 

Maximum contribution this year is $2,750. This increase also applies to limited-purpose FSAs that are

restricted to dental and vision services. $500 may be carried over into the next plan year and not count

toward the $2,750 maximum on medical and limited-purpose FSAs.

$5,000 a year for individuals and married couples filing jointly, or $2,500 for a married person filing separately.