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[October 11, 2006]
UC is facing increasing costs in all of its medical plans for 2007, which means that many employees will have to pay more. How much you pay will depend on your pay band, the plan you choose and the family members you cover. UC remains committed to offering you a choice of health care plans and, unlike other employers, is not cutting benefits.
- Overall, medical plan costs will increase 11.7% next year, similar to the 11.9% increase faced by CalPERS.
- The total cost of medical premiums for UC and employees will be $792.4 million in 2007.
- Costs are increasing for a number of reasons: higher charges by doctors and hospitals, the age and health of UC employees, the high cost of prescription drugs, and utilization of medical benefits by our employees.
- Employees in lower pay bands will have lower increases in dollar terms than higher-paid employees (though the percentage increases on these lower amounts are higher).
- UC still provides fully-paid dental and vision coverage.
- Pay bands are being adjusted, so some employees may pay less in 2007 than in 2006.
This chart shows that UC pays the overwhelming majority of employee health insurance costs.
|
2006: Single coverage with Health Net |
2007: Single coverage with Health Net |
||||
|
Pay Band |
Your Contribution |
UC's Contribution |
Pay Band (Adjusted) |
Your Contribution |
UC's Contribution |
|
Pay Band 1: $40,000 or less |
$12.49 |
$308.35 |
Pay Band 1: $43,000 or less |
$20.64 |
$344.70 |
|
Pay Band 2: $40,001-$80,000 |
$26.49 |
$294.35 |
Pay Band 2: $43,001-$86,000 |
$45.14 |
$320.20 |
|
Pay Band 3: $80,001-$120,000 |
$45.49 |
$275.35 |
Pay Band 3: $86,001-$129,000 |
$70.14 |
$295.20 |
|
Pay Band 4: $120,001 and up |
$69.49 |
$251.35 |
Pay Band 4: $129,001 and up |
$96.14 |
$269.20 |
Remember that for 2007, your pay band is based on your annual, full-time salary as of January 2006.