2022 Summary Annual Report - Welfare Plans

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Friday, September 29, 2023

To Participants and Beneficiaries of the Lehigh University Welfare Benefit Plans listed below.

This report highlights important information about the Lehigh University Health and Welfare Plan and benefit plans listed below.  While some of this information may appear to duplicate information previously communicated to you, the Internal Revenue Service and U.S. Department of Labor require that an annual report in this format be given to all employees.

The information used in this summary annual report has been taken from detailed Annual Reports filed with the Internal Revenue Service and the U.S. Department of Labor’s Employee Benefits Security Administration under employer identification number 24-0795445, for the 2022 plan year.  These reports have been filed in accordance with the Employee Retirement Income Security Act (ERISA).

 

Basic Financial Statements for Plan Coverage

Medical Coverage 

The self-insured component of the plan had contracts with Capital Blue Cross, Express Scripts, and Uprise Health to pay claims incurred under the terms of the plan.  Claims and capitation in the amount of $23,037,341 and administrative costs of $636,070 were paid from the general assets of the University for all plan participants during the plan year. The plan paid premiums of $681,645 to purchase excess loss insurance from Avalon Insurance Company.

The plan had a contract with Highmark Blue Shield to provide vision care coverage.  Premiums in the amount of $147,375 were paid during the plan year.

The plan also had a contract with United Concordia Life and Health Insurance Company to provide dental insurance.  During the same twelve month plan year, premiums in the amount of $915,805 were paid to United Concordia.

Long Term Disability and Group Life Insurance 

The plan had a contract with The Lincoln National Life Insurance to pay claims incurred under the terms of the plans.  The total premiums paid for the twelve month plan year were $1,715,448.

Travel Accident Insurance for Employees of Lehigh University

The plan had a contract with National Union Company to pay claims incurred under the terms of the plan.  The total premiums paid for the twelve month policy year were $6,210.

Flexible Spending 

Benefits under this plan are provided from amounts received by the University through salary reduction.  There is no separate fund or trust.  The amounts are commingled with other assets of the University.  Separate accounts, however, are maintained on the University’s records for each Flexible Spending Plan participant.  

Flexible Benefits for Part Time Employees

This plan is one under which employees are permitted to direct salary reduction contributions to other plans.  There are no assets or liabilities.  The full administrative cost is borne by the University.

Flexible Benefits for Full Time Employees and Certain Former Employees 

This plan is one under which employees are permitted to direct salary reduction contributions to other plans.  There are no assets or liabilities.  The full administrative cost is borne by the University.

Medical Premium Reimbursement Plan for Retirees (PN521

This plan is one under which eligible retirees are reimbursed for a portion of the cost of their medical coverage.  Benefits are paid from the general assets of the University.

Your Rights to Additional Information

If you are interested in further information, you have the right to receive a copy of any or all of the full Annual Reports, or any parts thereof, including insurance information and sales commissions paid by insurance carriers, on request.  To obtain a copy of a full Annual Report, or any part thereof, contact Patricia Florkowski, Human Resources, 306 S. New St, Suite 437, Bethlehem, PA 18015, or telephone (610) 758-5167.  The charge to cover copying is $0.25 per page.

You also have the legally protected right to examine the Annual Reports at the main office of the plans at the Office of Human Resources, 306 S. New St, Suite 437, Bethlehem, PA  18015 and at the U.S. Department of Labor in Washington, DC., or to obtain a copy from the U.S. Department of Labor upon payment of copy costs.  Requests to the Department should be addressed to: Public Disclosure Room, N-1513, Employee Benefits Security Administration (EBSA), Department of Labor, 200 Constitution Ave., N.W., Washington, DC 20210.