UNIVERSITY PARK, Pa. — When Penn State’s 2025 benefits open enrollment period opens on Nov. 1, benefits-eligible faculty and staff will continue to have access to the same high-quality health care coverage, plus several new benefits, including a third health plan option and pet insurance, legal insurance and identity protection insurance. Employees also will see increases in their health care contributions in 2025 due to ongoing rising costs.

Technical service employees are covered under a separate contract and will not be eligible for some new offerings under their current bargaining agreement.

“We care deeply about our employees’ health and well-being, and Penn State’s leadership team remains committed to offering employees affordable, high-quality health care that is competitive across higher education and nationally,” said Jennifer Wilkes, Penn State vice president for Human Resources and chief human resources officer. “Penn State is facing the reality of rising health care costs, a trend we expect will continue in future years. To cover these cost increases, the plan for 2025 includes monthly contribution increases. As has been the case for many years, planned increases will be on a sliding scale for our employees based on their income, the number of dependents covered, and which health plan they choose.”

Contribution changes and plan options for the 2025 health plan were discussed in consultation with key stakeholder groups across the University, including the Faculty Senate Benefits Committee, Health Care Advisory Committee and the University Staff Advisory Council.

2025 benefits highlights

For 2025, the name of the Lion Advantage plan will change to Lion Advantage HSA, but the plan design will remain the same.

Penn State also will offer a third medical plan option in 2025 through Highmark, the Lion Advantage Flex plan. This plan has the same contributions and coverage as the Lion Advantage HSA plan; however, it is not paired with a Health Savings Account (HSA). Lion Advantage Flex is an alternative to those who want to enroll in a high-deductible, lower premium health plan, but are not eligible for an HSA. This includes those who are Medicare-eligible or are covered under their spouse’s plan. Participants do have the option of enrolling in a Flexible Spending Account (FSA) to set aside pre-tax funds to pay for eligible medical expenses. Technical service employees are not eligible for this plan. 

All plan design elements, including copays, deductibles and out-of-pocket maximums, will remain the same in 2025 for employees enrolled in Penn State’s Lion Traditional plan, while the only change to the Lion Advantage HSA plan (formerly the Lion Advantage plan) will be a required increase in the IRS minimum deductible.

In response to employee requests, this year Penn State will offer additional optional benefits for faculty and staff, including pet insurance, legal insurance and identity theft protection. Additional details about each of these new options can be found below. Employees can elect to enroll in the pet insurance at any point during the year. Technical service employees are not eligible for these new optional benefits. 

• Legal Insurance: Administered by MetLife, legal insurance provides coverage on the costs of a wide range of common legal issues. Participants will have access to experienced attorneys to help with estate planning, home sales, tax audits and more.

• Pet insurance: Administered by MetLife, the optional pet insurance is open to faculty and staff via direct enrollment and payment options through the MetLife pet insurance portal. This means employees will not enroll through Workday. The plans are customizable based on the employee’s pet’s needs, breed and age of the pet.

• Identity Protection Insurance: Administered by ID Watchdog, identity protection insurance provides greater peace of mind, with either employee-only coverage or family coverage available.

Benefits open enrollment will run Nov. 1-15, and employees will receive an email on Nov. 1 with instructions on how to make their 2025 benefits elections. To help employees make informed decisions about their 2025 benefits, the Penn State Employee Benefits team will conduct live educational webinars throughout October and November to review all benefits options and answer any open enrollment questions from employees. The webinar schedule is available on the 2025 benefits open enrollment website.

Monthly contributions to rise in 2025

Penn State is projecting a nearly $32 million increase in health care costs for 2025. Just as Penn State is budgeting for these expected increases in the years beyond 2025, Wilkes said employees also should expect contributions and/or plan designs to be adjusted in future years. Penn State is self-insured, meaning the University and its employees together cover the full cost of employee health insurance.

“I want our faculty and staff to know we remain committed to keeping our plan options as comprehensive and affordable as possible. Our work to manage costs, and to offer employees new benefit options to meet their needs, will continue,” Wilkes said. “I know how critical health benefits are to our employees and their families. Penn State’s leadership team and I are committed to continuing to consult with our faculty and staff representatives, and to communicating regularly and with clarity about plans for future years.”

How will the changes for 2025 impact me?

All employees can estimate their monthly premiums for 2025 for each plan type and coverage tier by downloading Penn State Human Resources’ health care payroll contribution calculator. A chart of the plan design, including deductible, coinsurance and out-of-pocket costs, is available for review.

Penn State's salary-based model for determining employees’ monthly health care contributions, which has been in place since 2012, will continue in 2025. The model is designed to equitably share health care costs among employees using an employee’s exact annual base salary to determine how much each employee contributes for coverage.

For example:

• Under the Lion Traditional plan, for 2025, an employee earning $75,000 will see their monthly contribution increase by $12.50 for individual coverage or $39.38 for family coverage.

• Under the Lion Advantage HSA plan and the new Lion Advantage Flex plan, an employee earning $75,000 will see their monthly contribution increase by $6.88 for individual coverage or $20.63 for family coverage. 

To help control costs, Lion Traditional plan members who have been diagnosed with certain chronic conditions can continue to enroll in the Condition Care Program in 2025. This program encourages individuals to manage their health conditions by keeping their out-of-pocket expenses low. With this program, all office visits, lab work and medical supplies related to these conditions are covered at 100% with no copays or coinsurance.

Employees also can use Highmark’s Care Cost Estimator tool to compare costs on a variety of common health care services to estimate costs across providers to find the best value for their money. To access the tool, log in at Highmark.com or create an account. Once logged in, select “Get Care” and then select “Go to provider search.” Users will then be presented with an option for the Care Cost Estimator. 

Penn State offers a variety of additional programs and services to support employees’ health and well-being. A full listing of employee health and wellness resources can be found on the Penn State Human Resources website.