Human Resources is announcing changes to employee benefit plans that will take effect on Jan. 1, 2026. These updates are part of IU’s fiscal year 2026 operating budget and reflect a commitment to providing a competitive benefits package while also responding to financial pressures facing all employers.

As announced in June, in order to address significant state and federal funding cuts, IU must reduce overall expenses by roughly $120 million for fiscal year 2026. Rather than implementing across-the-board cuts, the university is adopting targeted, strategic measures to reduce expenses while continuing to make investments that strengthen IU’s impact.

As part of these efforts, the following benefit plan changes will take effect on Jan. 1, 2026, and will be available for faculty and staff to elect during the annual Open Enrollment period from Nov. 3 to 14, 2025.

Medical plans

• There will be no changes to the deductibles, out-of-pocket maximums, coinsurance or copays for medical services.
• The bottom three premium salary bands will be raised, ensuring the lowest-paid employees pay the lowest premiums.

• There will be no change to the employee’s share of premiums for employee only and employee plus children coverage levels.
• There will be a 30% increase to the employee’s share of premiums for employee plus spouse and family coverage levels.

Consistent with national trends, data from IU’s health plans shows that medical and prescription utilization is significantly higher for the employee plus spouse and family coverage tiers. This higher usage — driven by medical services, prescriptions and high-cost specialty treatments received by spouses — contributes disproportionately to overall plan expenses. For this reason, IU is raising premiums for coverage tiers that include a spouse to reflect this higher utilization and to distribute costs more equitably.

• The tobacco-free premium reduction will no longer be offered in 2026.

• Weight loss medications remain covered but will be limited to a 30-day supply per refill.
• Diabetes and hypertension management programs through Teladoc Health (Livongo) will transition to Marathon Health. Current members will receive direct communications explaining how to register with Marathon Health.
• Marathon Health will begin dispensing a select number of common prescriptions in-house, such as antibiotics, asthma medications and diabetic supplies.

Anthem PPO HDHP

• The HDHP preventive drug list will be limited to generic medications and generic/brand name diabetes medications only. Drugs on the list will continue to be covered with a 20% coinsurance and no deductible, while brand-name versions will be covered like any other medication, subject to the deductible and coinsurance.

Dental plan

• There will be no changes to the premiums, deductibles, out-of-pocket maximums, coinsurance or copays for dental services.
• All premium salary bands will be raised, ensuring the lowest-paid employees pay the lowest premiums.

Health savings account

• The annual contribution limits will increase to $4,400 for employee-only coverage and $8,750 for all other coverage levels. The age 55 and older catch-up contribution will remain the same at $1,000.
• The university’s HSA contribution will be reduced to $1,000 for employee-only coverage and $2,000 for all other coverage levels. This contribution will continue to be deposited in two installments: half in January and half in July.

Flexible spending accounts

Healthcare FSA

• The annual contribution limit will increase to $3,300 per individual.
• The annual carryover amount will increase to $660 with a $50 minimum.

Dependent care FSA

• The annual contribution limit will increase to $7,500 per household.

Supplemental AD&D insurance

• No plan or premium changes.

Critical illness insurance

• No plan or premium changes.

IU recognizes the challenges that can arise from adjustments to premiums and contributions for employees. To help balance these changes, the university is maintaining core plan features — no-cost preventive services, stable deductibles and out-of-pocket maximums, broad provider networks, and continued university contributions to employee HSAs — while expanding services at the Marathon Health employee health centers.

Watch IU Today, email for additional details

Open Enrollment for the 2026 plan year is Nov. 3 to 14, 2025. Additional details, including plan summaries, premiums, links to register for webinars and more, will be shared with employees over the coming weeks on the Open Enrollment website. For questions, contact IU Human Resources at askhr@iu.edu or 812-856-1234.