Understanding Plan Option Cost Recalculations

After you set up a plan with options, you might need to update the amounts or rates that are associated with those options. For example, if a benefit carrier raises its rates for family medical coverage, you must update the cost of the family option of the medical benefit plan.

The system uses the Batch Enrollment program (R083800), and the Recalculate Option Costs program (R083810) to recalculate the option costs and update employee DBA instructions with the new costs. To update option costs, you must complete these steps:

1. Change the rate of the option using the Plan Master Options program (P083202).

2. Create a new version of the Batch Enrollment program.

   Enter this information when you set up the version:

   • Enter the date on which the new option costs will take effect in the Effective Date processing option on the Date tab.

   • Initially, enter 0 in the Mode processing option on the Process tab. This enables you to process the report in proof mode.

     Note: After you have processed this version in proof mode and verified that the information is correct, you can change this processing option to run the Batch Enrollment program in final mode. This updates employee DBA instructions with the new enrollment records for the updated option costs.

   • Enter the plan ID to which the option is attached in the Plan processing option on the Process tab.

   • Enter TRT in the Ending Enrollment Status processing options on the Process tab and on the Recalculation tab.

   • Verify that the data selection for this version selects employees whose benefit status is not equal to blank. You can use additional data selection to narrow the selection criteria.

3. Process the newly created version of the Batch Enrollment program in proof mode.

   The system automatically generates the Recalculate Option Costs report (R083810).

4. Review the Recalculate Option Costs report and verify that the stop dates, start dates, and new rates are correct.

5. Process the Batch Enrollment program in final mode.

6. To verify that the updates were successful, review the DBA instructions of an employee who was included in the Batch Enrollment process.

In order to update option costs for an employee, you must ensure that:

• The benefit plan and benefit option are set up.

• The employee is enrolled in the plan and the option.

• The employee has history for the DBA that is associated with the plan option.

• The employee is not locked to a payroll ID at the time that you update plan option costs.

See also:

• Setting Up Plan Options.