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[September 6, 2007]
Last month the university distributed and posted on the web information outlining some of the changes to UC's medical plans for 2008.
While the university is still finalizing employee and retiree premium rates, we have determined the total ("gross") cost of medical plan benefits for next year. In 2008, the university and its employees will pay a cumulative total of $862.5 million for health insurance - an overall increase of 8.5% (or $67 million) from 2007. This compares to an 11.7% increase (or $82 million) in 2007. The university is working to maintain its current level of funding (86% on average) to help cover these increased costs.
There is not a direct relationship between the gross rate cost increase and employee and retiree 2008 monthly premiums. Employee and retiree premium rates for 2008 are expected to be announced in the next few weeks. For represented employees, medical plan premiums are subject to collective bargaining as appropriate.
As we've previously mentioned, next year will bring a few changes to UC's medical plans. Some of these changes are listed below:
- As a result of HMO consolidation, Health Net will be UC's network HMO provider. UHC/PacifiCare will no longer be offered. However, Health Net benefits and primary care doctors are virtually the same.
- UC will offer most employees and retirees new wellness benefits through StayWell.
- UC will offer enhanced and standardized mental and substance abuse benefits to most employees and non-Medicare retirees through United Behavioral Health.
- The CIGNA plan, featuring a health reimbursement account (HRA) plus a PPO is a brand new option.
- Most UC employees and retirees will pay the same co-pays (for things like office visits and prescription drugs) in 2008 as they currently do in 2007.
- Open Enrollment will be held from November 1 - 27, 2007: this is when you'll review your medical plan options and determine the one that fits your needs best.
These are just the highlights. For more information, view the presentation about the UC medical plan selection process for 2008 and the fact sheet.