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[June 9, 1999]
The University of California has selected the companies to offer medical plans to UC employees, retirees, and their families beginning January 1, 2000.
Having completed a comprehensive 18-month evaluation process, the University has determined that Prudential will be retained to provide coverage for UC Care, High Option, and Core, and will now also provide the prescription drug coverage under those plans. The behavioral health coverage will be provided by United Behavioral Health (UBH). UBH is one of the nation's top behavioral health care companies and is headquartered in San Francisco. A wholly owned subsidiary of United HealthCare, UBH has provided behavioral health care services to California employees and their families since 1979. The organization has a strong clinical focus and is progressive in areas of research and clinical studies. The telephone referrals are handled by master's-level clinicians, who are available 24 hours a day, 7 days a week.
As a result of the bid selection process, HMO coverage will continue to be provided by Health Net and PacifiCare.
HMO Plans that were not rebid, but that will continue to be offered, are the Kaiser plans (North and South) and Western Health Advantage. The University will work with these plans, as well as those selected from among the companies which submitted bids, to obtain a consistent response to issues of concern to its members.
Even though there are relatively few changes in carriers, the University is confident that the medical plans chosen are the companies most qualified to deliver quality health care at affordable rates for UC's medical plan members. In addition, the bid selection process has resulted in improvements in a number of areas, such as containment of cost increases, better availability of relevant information to members, and commitments to improve access for members.
"This is good news for the University," said Judith W. Boyette, Associate Vice President of Human Resources and Benefits. "In today's health care climate, where mergers, acquisitions, and consolidation are commonplace, it's great to be able to provide stability to the UC community. We know that our plans continue to be the best plans available. Through the bid process, we found those health care plans who wanted to partner with us to provide excellent service and quality care at a reasonable cost to our members." Boyette stressed the important role that University faculty members, many with expertise in the health care field, played in the review process.
"The Faculty Welfare Committee was consulted extensively in the process", said Robert Anderson, Committee Chair and Professor of Economics and Mathematics at UC Berkeley. "Faculty expertise played a central role in the evaluation process, and I am convinced that the winning bidders provide the best medical plans available in California today."
Throughout 1998, a large team of UC administrative staff, under the leadership of Michele French, Director of Health and Welfare Planning and Analysis, consulted with thousands of UC employees and retirees statewide (in focus groups, written surveys, and internet questionnaires) regarding their satisfaction with their current medical plans. UC administration also consulted with the unions who exclusively represent UC employees. In addition, Senior Vice President Wayne Kennedy convened an advisory group which included representatives from a broad cross section of the University community to consult with UC administration regarding the bid process. Findings through the various consultations revealed a high level of satisfaction overall, with a strong interest in improvements in certain key areas. These areas varied by individual member and by plan, but concerns often mentioned were a desire for better health education and easier access to providers.
In the bidding process, proposals submitted by medical carriers were evaluated based on their ability to provide affordable, quality health care, as well as:
- Inclusion of UC providers (doctors and facilities that UC members currently use, including UC medical centers);
- Provider networks at all UC locations;
- More flexible access to providers and plan benefits;
- Predictable costs over the next few years;
- Health management/education for UC members.
During the coming months, UC will negotiate specific performance standards with the plan carriers and complete the contracting process. More details about the Year 2000 coverage will be announced in the coming months and in conjunction with Open Enrollment, so that members will have the guidance they need for selecting their medical plans for coverage to be effective January 1, 2000.