18-P-006 New Benefit Plans/Deduction Codes for Group Health Insurance (October 16, 2017)

The Kansas State Employees Health Care Commission recently approved adding three new medical insurance plans (J, N and Q), in addition to the existing Plan A and Plan C options, for State of Kansas employees via payroll deduction.  These new medical plans will be offered by Aetna and Blue Cross Blue Shield of Kansas during open enrollment in October 2017 for coverage beginning January 1, 2018.

To implement the new medical insurance payroll deductions, new benefit plans and deduction codes will be added to SHaRP.   The new medical insurance payroll deductions will be processed in SHaRP effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018.

The new medical insurance benefit plans and deduction codes effective December 17, 2017 are:

Also, effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018, new employer-only deduction codes will be implemented in SHaRP to assist in processing/tracking the HealthQuest employer contribution rewards paid to employees.  These new deduction codes will appear on employee paychecks for each pay period in which an employee’s earned HealthQuest credits are processed.

The regular quarterly HSA/HRA employer contribution deduction codes will not change.  These deduction codes are HSADR or HSASR for Health Savings Account contributions and HRADR or HRASR for Health Reimbursement Account contributions.

In addition, the voluntary supplemental insurance carrier is changing from Colonial to MetLife effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018.  Therefore, new voluntary supplemental insurance benefit plans and after-tax deduction codes effective December 17, 2017 are: 

The 2017 plan year voluntary supplemental insurance benefit plans/deduction codes created for Colonial will be discontinued effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018.  Employees who continue their coverage through Colonial will be direct billed by Colonial for premiums effective in 2018.  Colonial will be sending the direct billing information out to impacted employees in the future.

The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system.  Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.  In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction codes/benefit plans by November 30, 2017.

Printable version of 18-P-006

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