Video 1: This year’s benefits package
 

Video 2: The need to re-think how UC provides health care benefits

Video 3: How employees can save money on health care

Video 4: UC’s commitment to high-quality, sustainable benefits

A MESSSAGE FROM DWAINE B. DUCKETT

Dear UC Colleagues:

You and your contributions make UC the world-class teaching, research and public service institution it is, which is why providing access to high quality health care for you and your families is one of our highest priorities. To that end, we invest heavily in our employee health and welfare programs. Here are just a few examples of our level of commitment:

• We spend roughly $1.5 billion each year on health and welfare benefits.
• On average, we pay 88% of the costs associated with health care premiums, compared to an average employer subsidy of 80% in California and 76% for CalPERS.
• For our lowest-paid workers, UC covers roughly 96% of the premium costs. Although many of these entry-level positions are not eligible for health insurance at other employers, we feel coverage is important, regardless of level.
• For this year, we have kept employee health care costs as flat as possible in these difficult financial times—at an additional cost to the University of $95 million.

You will be pleased to learn that there are no major changes in programs or coverage levels for any of our health plans for 2010. And where there are some changes, most will enhance employee coverage. For instance, copays for generic drugs will cost a bit less next year, and in some cases, mental health benefits have been expanded.

While the University continues to subsidize plans at the same levels as last year, premiums for most plans will increase due to spiraling health care costs—dollar amounts vary depending on the individual plan, your pay band, and whether you choose coverage for only yourself or your family members. Given the financial sacrifices many of our employees are already making, it was especially important that we do everything possible to mitigate rising health care costs and not simply pass on increases to employees. We are pleased that UC continues to offer one of the most generous benefits packages of any large California employer.

Looking ahead, we know health care costs are projected to increase in 2011 and well into the future. Health care costs have already risen more than 130% in the past 10 years. Given that certainty, our program design with its current trajectory and associated costs is unsustainable. We have to chart a new course, redesign programs and innovate with regard to health care now. Otherwise, we jeopardize our ability to provide quality health care to our employees. My staff, along with experts in the health care field—some of which are UC colleagues—will spend the next year focused on this enormous task. Many of you will be involved in giving us feed­back about what you value and the health care choices you’d like to see in our plans

Enclosed is your 2010 Open Enrollment information. This booklet will help you review your health and welfare benefits, and make the choices that are right for you and your family. I encourage you to use this time to thoroughly review all your benefits. The legal plan, for instance, is open this year. And signing up for a health flexible spending account can be a great way to use pre-tax dollars to pay for anticipated medical costs. You’ll find full details of these and other options on the Open Enrollment website, available on At Your Service.

In closing, I want to thank you for your service to the University and to the people of California,and to assure you that we are continually looking for ways to ensure you have access to affordable, high-quality health care.

Sincerely,

Dwaine B. Duckett
Vice President, Human Resources