Health Insurance

Penn State Health Plans are administered by Aetna. There are two health plan options for eligible employees to choose from; the PPO Plan and the PPO Savings Plan. Please see this Aetna website for a list of in-network providers for the Penn State Health Plans. For additional information, you can contact Aetna at 855-878-4197.

Eligibility

Regular full-time faculty and staff members are eligible to enroll in Penn State’s Health Care Plan. For information about spouse and dependent children eligibility, please see Dependent Eligibility.

Part-time faculty and staff members can become eligible for medical coverage under the Affordable Care Act (ACA) regulations. There is a small group of part-time employee grandfathered under a former policy, for which additional details regarding this plan can be found within the health care premium comparison below. The same dependent eligibility outlined for full-time faculty and staff also applies for part-time faculty and staff.

Postdoctoral Scholars: As per postdoctoral scholar eligibility, the per-pay contribution rates follow the same salary-based premium schedule as for faculty and staff. For additional information regarding the benefits available to postdoctoral scholars, please contact or visit the Office of Postdoctoral Affairs.

If you or your dependents are no longer eligible for the health plans, information will be mailed from Lifetime Benefit Solutions regarding continuing coverage under COBRA. Additional information regarding COBRA benefits can be found on our COBRA website.

Becoming Medicare eligible (turning age 65) as an active employee:

As an active employee, your Penn State medical plan is considered primary for you and your eligible dependents. As an active employee, there is no need to sign up for Medicare Parts A or B.

Please be aware that if you are enrolled in the PPO Savings plan, you must decline Parts A and B. Per IRS regulations, you cannot be enrolled in Medicare Part A or B and be contributing to a Health Savings Account, which is automatically included with the PPO Savings Plan. It is important to note, upon turning 65, you are automatically enrolled in Part A if you are receiving Social Security benefits.

Part A is provided at no cost, so you can either enroll or decline Part A, but only if you are not currently enrolled or want to be enrolled in the future in the PPO Savings Plan.

Since there is a premium associated with Part B and it is secondary coverage, it may not make financial sense to pay for Part B. Please contact your local Social Security Office with any questions regarding Part B.

Upon leaving employment/retirement, if you and/or your spouse are 65 plus, you will want to visit your local Social Security office three months prior to sign up for Medicare upon retirement.

Healthcare Premiums

Payroll contributions will be determined based on the employee's annual base salary as of October 31, 2017. For the 2018 plan year, the new payroll contribution amount is effective January 1, 2018 and will remain the same for the entire year.

For 2018, if both spouses are employed by Penn State, medical coverage must be carried by the higher-paid employee. For Technical Service employees, this only applies if both employee and spouse are Teamsters members.

Visit health care premium comparison for sample rates.

Dually-Employed at Penn State

In the past, the University permitted employees to both be covered under the same health care plan of the employee with the lower salary. For 2018, this practice has changed when dually-employed Penn State employees would like to be covered under one medical plan (dental and vision plans are not affected). The following changes took effect on January 1, 2018.

Faculty/Staff: If you and your spouse are both employed at Penn State and are currently covered under one spouse’s medical plan, your coverage election for 2018 must be made by the higher-paid spouse. It is important to note that while you may remain covered under one medical plan of the higher-paid spouse, you do have the option to move to separate plans if you wish.

Technical Service Employees: This applies if BOTH spouses are Technical Service employees; does not apply if the spouse is faculty or staff. It is important to note that while you may remain covered under one medical care plan of the higher-paid spouse, you do have the option to move to separate plan if you wish.

For reference, here are the possible combinations for employees choosing to be covered under one medical plan based on the above changes:

  • Faculty/Staff + Faculty/Staff = Must be covered under the spouse with the higher salary
  • Technical Service Employee + Technical Service Employee = Must be covered under the Spouse with the higher salary
  • Technical Service Employee + Faculty/Staff = Employees can choose which spouse will carry the policy

If you experience the following qualifying event changes:

  1. Spouse becomes a new employee at Penn State and is the higher-paid spouse.
  2. You and your spouse are both Penn State employees and a change of position for one of you changes the higher-paid spouse to the one not carrying coverage.

In either of these instances, you will NOT be required to change coverage to the higher-paid spouse mid-year. During the next annual benefits open enrollment period, you will need to make the appropriate changes for the higher-paid spouse to carry coverage if choosing to maintain coverage under only one spouse.

Healthcare Spending Accounts

Penn Staters have the following options for putting aside pre-tax dollars to help pay for medical expenses:

Health Savings Accounts - For PPO Savings Plan members

Flexible Spending Accounts - For Plan members and for Penn State employees who are not in a Penn State health plan

Additional Resources