Rates and Paying for Health Coverage

Employee Health Plan Rates

The university invests in you by contributing a significant amount of the cost of your health benefits.  The amount you pay towards your health plan premiums depends on your plan selection, salary, employment status, and coverage level.  Faculty, staff, and graduate students can view personal rates using Employee Self-Service > Benefits > View Benefit Plan Rates in Wolverine Access. Your current rates will be displayed at the top; scroll down to view next year's rates.

View information and rates in effect for COBRA coverage.

View rates in effect while you are on a Leave of Absence or Reduction in Force (layoff).

Faculty and Staff Health Plan Rate Estimator

Use the Health Plan Rate Estimator if you do not have a uniqname or if you want to see how an appointment or salary change might impact your monthly health plan rates.

Retiree and Student Health Plan Rates

View retiree rate information and learn more about paying for benefits in retirement

View rate information for graduate or medical students

Paying for Coverage

Employees pay a portion of the monthly health benefits premium cost through automatic payroll deductions on a pre-tax basis.  If you are paid biweekly, payroll deductions will occur on the first two paychecks each month.  If you are paid monthly, payroll deductions will occur monthly.

If the timing of your elections and payroll cutoffs results in a missed deduction or retroactive coverage, the amount will be taken from your next available paycheck.

If changes to your benefits occur during the month (for example, adding coverage for a newborn child), cost adjustments are made the next month.

You are responsible for making sure your paycheck is enough to cover your premium cost for the plan and coverage level you choose. You can view your appointment information, including your per pay period gross amount, on  Employee Self-Service > Employment Information > View Appointment in Wolverine Access.

"MHealthy Programs" and "MHealthy Rewards" on Your Paycheck

The line items "MHealthy Programs" and "MHealthy Rewards" listed under the EMPLOYER PAID BENEFITS section on your paycheck are amounts contributed by the university each pay period to provide programs and incentives geared toward helping faculty and staff improve their health and wellness. They are not deductions from your pay.  Learn more about MHealthy program and services available to faculty and staff.

How Is My Rate Determined?

Salary Band Ranges

U-M uses three salary bands to determine the university contribution toward health coverage premiums.  The bands are adjusted each year as salaries change.  The ranges for the current year are based on U-M salaries as of January 1, or the date a person becomes eligible for salary-banded rates, whichever is later.

2016 Salary Band Ranges

Band 1 ($42,200 and below for 2016) has the lowest employee contribution and the highest university contribution toward monthly health coverage premiums. Retirees and benefit-eligible students automatically have Band 1 rates. Part-time employees with regular appointments between 20 and 29 hours per week receive contributions equal to 80% of Band 1 university contributions.

Band 2 ($41,201 to $60,000 for 2016) employee contributions increase in gradual increments over the spectrum of the Band 2 salaries to help avoid a jump in monthly health plan premium payments when an employee with a salary in the Band 2 range receives a pay raise.

Band 3 ($60,001 and above for 2016) has the highest employee contribution and the lowest university contribution toward health coverage premiums.

Health Plan Salary

The amount of salary that determines whether the your pay falls into Band 1, Band 2, or Band 3 (“health plan salary”) is based on your Full-Time Equivalent (FTE) salary plus additional incentive pay when applicable. Summer salary and overtime pay are not included.  FTE salary is used to make sure that employee premiums are charged fairly at different appointment levels.  

Choice of Plan and Coverage Level

There are different monthly premium amounts for the university’s different health plans.  Within each salary band, the monthly employee contribution is determined by your choice of health plan as well as the level of coverage you select.