Employees won’t be impacted by Kaiser’s medical premiums increase
The Oregon legislature has levied a 1 percent tax on health insurance premiums, effective Oct. 1, to provide access to health care coverage for low and moderate income Oregon children currently without health insurance. The tax is matched 2-to-1 by the federal government. To offset this 1 percent premium tax, Kaiser has raised its premiums to George Fox and all of its other employer groups by a corresponding 1 percent.
The university has agreed to absorb this increase for the remainder of this plan year in addition to the 80 percent contribution it already makes, so employees with Kaiser coverage will not have to pay this premium increase until any change in premium for the new plan year (March 31, 2010 payroll deduction).
Because the Pioneer Educators Health Trust plan is a self-insured multiple employer welfare trust rather than an insurance company, it was not subject to this new 1 percent premium tax.