2023 WELS VEBA open enrollment and rate updates
The WELS VEBA Commission approved a full open enrollment period this November for new coverage effective Jan. 1, 2023. All eligible workers will have the opportunity to enroll for new coverage or make changes to their existing WELS VEBA coverage. Sponsoring organizations that do not currently participate in WELS VEBA will have the opportunity to participate by offering WELS VEBA to their eligible workers for 2023. Open enrollment materials will be mailed to eligible workers and sponsoring organizations by the end of October.
The 2023 premium rates for the WELS VEBA Group Health Care Plan will increase by 9.5% over the current 2022 rates. There are three main drivers of the increase:
- The utilization of health care services has increased as access to providers has improved during the COVID-19 pandemic.
- Inflation has caused the cost of health care services and prescription drugs to increase at a faster pace than in recent previous years.
- Investment returns achieved by the WELS VEBA medical trust year-to-date through June 30, 2022, are lower than expected.
“Although the 2023 increase is significant, the increase is necessary for the plan to maintain adequate projected long-term reserves and is in line with average expected increases in health insurance premiums nationwide,” explains Mr. Joshua Peterman, director of WELS Benefit Plans. “It is also important to remember that over the previous four years the WELS VEBA rates increased by a total of only 4%, and $4.2 million in savings was passed on to participating sponsoring organizations during the August 2020 premium holiday.”
View the 2023 rates at welsbpo.net.
