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Posts Tagged: Open Enrollment
2024 health insurance rates explained by Cheryl Lloyd, VP of Systemwide HR
As Open Enrollment begins, I have heard from many members of our community about how they will be impacted by increased medical premiums for UC plans next year. Nothing I can say will help you balance your monthly budget, but I feel I owe you an explanation of the steps we've taken to maintain quality, choice, affordability and equity.
As someone who takes UC's commitment to high-quality and affordable health benefits very seriously, the premium increases for 2024 are painful. Even with UC covering over 80% of the cost, next year's medical premiums will make a bigger dent in paychecks that need to cover many other critical expenses.
Since we learned that medical costs were increasing for 2024 — nationally, as well as for UC — I have been working with UCOP leadership and Systemwide Human Resources colleagues to figure out how to ease the burden of rising costs on our employees and retirees.
Sacrificing quality or choice was never on the table. UC continues to offer CORE, a high-deductible medical plan, as a $0 premium option for budget-conscious employees who don't anticipate significant medical needs. For other employees, though, it is critical that UC continue to offer plans with a range of features, including low out-of-pocket costs for care and access to UC Health's world-class providers (access that is protected regardless of issues that may arise between UC Health providers and insurance carriers).
After many conversations and budget analyses, UCOP leaders committed to $93 million in subsidies — added to UC's original budget — directed toward lowering premiums. This follows a subsidy of $29.5 million last year, also added to lower premiums for employees and retirees, and several years of premium increases kept in check through well-managed costs and contracts.
As part of UC's commitment to equity, medical plan premium costs continue to be adjusted by salary range and premium increases are distributed equally by percentage across pay bands. For example, the premium for self-coverage in Kaiser increased by 26%; that's an increase of less than $8/month for employees who earn up to $68,000 a year and an increase of $38.58/month for employees who make over $204,000 a year.
The challenge of responding to the complicated factors that affect the cost of health care benefits has not gotten any easier during my four years leading Systemwide Human Resources. We will continue to work closely with our health plan partners to manage costs, to adjust UC's budget to maintain our commitment to quality and affordability, and to listen to and learn from our community.
If you have any questions or feedback, please reach out to Jay Henderson, associate vice president of UC Total Rewards, at healthandwelfarebenefits@ucop.edu.
Sincerely,
Cheryl Lloyd
Vice President
Systemwide Human Resources
Open Enrollment is here, through Nov. 17, 2023
Open Enrollment, your opportunity to enroll in the right benefits for you, started on Oct. 26 and extends through Nov. 17, 2023, at 5 p.m. Pacific Time.
Health care costs — and medical plan premiums — are increasing nationwide, including for UC. These increases make it more important than ever to consider your options this year.
“As someone who takes UC's commitment to high-quality and affordable health benefits very seriously, the premium increases for 2024 are painful,” said Cheryl Lloyd, vice president of Systemwide Human Resources. “UC contributed $93 million in additional subsidies to lower premiums for employees and retirees, but these increases will still make a bigger dent in paychecks that have already been stretched by other rising costs.”
Monthly premium costs for employees are increasing:
- For UC Blue & Gold HMO, by around 15% for coverage that includes a spouse or spouse and children, and up to 18% for employee-only coverage
- For Kaiser, by around 26% for self-coverage or coverage for the employee and children, up to 74% for coverage of the employee and spouse
- For UC Care, by around 22% for coverage of employee and spouse, up to 26% for employee-only coverage
- For UC Health Savings Plan, by around 156% for coverage of employee and child(ren), up to 193% for employee and spouse coverage
The CORE medical plan remains available at $0 monthly premium for eligible employees and their families.
Please see Frequently asked questions about rising medical plan premiums for more information about the factors leading to these increases and UC's response.
If you're an employee, ALEX can help you understand your options. Answer a few questions and ALEX will provide rates specific to you (customized by your salary, location and bargaining unit, if you're a represented employee), as well as estimates of out-of-pocket costs for care and side-by-side plan comparisons. The Open Enrollment website is another great resource to learn more about this year's choices, changes, and costs.
Please note: You may have heard about provider agreement negotiations between Anthem Blue Cross and UC Health. Rest assured that UC's existing health plan agreement with Anthem — in place until 2025 — will continue to ensure access to UC Health physicians and facilities through the UC plans that Anthem administers (CORE, UC Care, UC Health Savings Plan, UC High Option, UC Medicare PPO and UC Medicare PPO without prescription drugs).
When you're ready, log in to UCPath (employees) or UCRAYS (retirees) to submit your open enrollment choices for 2024. Be sure to complete your elections by hitting the “Submit” button by Nov. 17, 2023, at 5 p.m.
RELATED LINKS
Medical costs are rising: Choose benefits that are right for you Oct. 26–Nov. 17
Medical costs are rising: Choose benefits that are right for you Oct. 26–Nov. 17
Open Enrollment for 2024 benefits begins on Thursday, Oct. 26, at 8 a.m., and ends on Friday, Nov. 17, at 5 p.m. With significant increases in medical plan costs — despite UC covering a larger share of premiums — it's more important than ever to make sure you understand your options and costs.
Premium contributions for certain employee groups and locations may vary from the amounts shown on UCnet and in your Open Enrollment materials. To see rates specific to your location and bargaining unit (if represented), visit ALEX, your virtual benefits counselor. You'll also see the premiums that apply to you when you sign in to your UCPath account to enroll for 2024 benefits.
If you don't act during Open Enrollment, you'll continue your current health coverage in 2024, but your costs may change. For the lowest-cost Kaiser plan (self-coverage for people making $68,000 or less per year), the monthly employee premium will change by less than $8/month. For UC Health Savings Plan members covering family members, premiums will be up to three times higher than they were last year.
UC and employers nationwide are feeling the effects of big increases in three main factors that impact medical plan premiums — costs for medical care, costs for prescription drugs and how much care is used by the people who are insured. To help protect UC employees, retirees and their families from rising premiums, UC approved a significant budget increase for 2024 — an additional $84 million for employees and $9 million for Medicare-eligible retirees. These additional subsidies directly reduce premiums for employees, retirees and their families.
2024 changes
UC will offer the same medical and non-medical plans in 2024.
As a reminder, you must enroll or re-enroll in your Health and/or Dependent Care FSA each year.
Changes to medical benefits are minor, but there are a few important enhancements to benefits across all of UC's employee plans:
- FDA-approved over-the-counter contraceptive drugs and devices will have $0 cost-share (after the deductible, for UC Health Savings Plan and CORE) and no prescription requirement.
- Male sterilization (vasectomy services) will have $0 cost-share (after the deductible, for UC Health Savings Plan and CORE), if obtained in-network.
UC continues to pay the full cost of dental and vision coverage for employees and their eligible dependents. Employee vision plan coverage for contact lenses will change from a combined maximum benefit of $160 for lenses and exam to a maximum benefit of $160 for lenses, with the exam covered separately with a copay of up to $60.
UC's accident, critical illness and hospital indemnity plans will be administered by Prudential in 2024. Premium costs aren't changing, but there are a few changes in benefits, including:
- Accident — Benefits are increasing for hospital admittance, ground transportation, medical appliances and more.
- Critical illness
- Pre-existing cancer diagnosis limitations will be removed.
- New infectious disease coverage (including for meningitis, lupus and Lyme's disease) and wellness benefits will be added.
- Hospital indemnity — Mammography benefits are paused pending DOI approval; benefits for hospital admission and more are increasing.
There are no changes to premium costs or benefits for legal, disability, life or AD&D insurance.
Learn more
As always, UC is offering a full range of tools and resources this year to help you make informed benefits decisions. ALEX is ready for 2024.
Starting Monday, Oct. 23, visit UC's Open Enrollment website for an overview of choices, changes and costs — and check your postal mailbox for your Open Enrollment packet, including medical plan comparison charts.
If you need more personal assistance, contact your local Health Care Facilitator (HCF).
Log in to UCPath (employees) starting Thursday, Oct. 26, at 8 a.m. to see the medical plan premiums that apply to you and make your benefits elections. Be sure to finalize and submit your choices by Friday, Nov. 17, at 5 p.m.
Related link:
Employee Medical Plan Costs (2024)
Open Enrollment ends Friday, Nov. 18
UC's Open Enrollment for 2023 benefits ends on Friday, Nov. 18, at 5 p.m. Visit https://ucnet.universityofcalifornia.edu/oe to submit your choices.
UC will continue to offer the same benefit plans as this year for faculty and staff. However, there are some important changes next year — including new resources to support you, enhanced benefits, and changes in monthly premiums — so take the time to understand your options.
If you wish to continue the same benefit plans you currently have, no action is required, with the exception of Flexible Spending Accounts (FSAs). As a reminder, you must enroll or re-enroll in your Health and/or Dependent Care FSA each year.
RELATED LINK: Tome control de su salud: La Apertura de Inscripción comienza el jueves, 27 de octubre
Open Enrollment begins Thursday, Oct. 27
UC's Open Enrollment for 2023 benefits begins on Thursday, Oct. 27, at 8 a.m., and ends on Friday, Nov. 18, at 5 p.m. UC will continue to offer the same benefit plans as this year for faculty and staff. However, there are some important changes next year — including new resources to support you, enhanced benefits, and changes in monthly premiums — so take the time to understand your options.
RELATED LINK: Tome control de su salud: La Apertura de Inscripción comienza el jueves, 27 de octubre
If you wish to continue the same benefit plans you currently have, no action is required, with the exception of Flexible Spending Accounts (FSAs). As a reminder, you must enroll or re-enroll in your Health and/or Dependent Care FSA each year.
“Access to quality health care is more important than ever right now, and I'm very proud of our work to maintain a choice of high-quality options for UC faculty, staff and retirees and their families,” said Vice President of Systemwide Human Resources Cheryl Lloyd. “As costs rise nationwide, we're committed to working closely with our health insurance partners to keep costs as low as possible, and to continuing to cover the majority of monthly premium costs for eligible faculty, staff and retirees.”
2023 highlights
Understanding your choices
To help you take control of your health, UC is offering more support than ever to learn about your options.
Check out the following resources:
- Visit ALEX, your virtual benefits counselor, for a quick and easy Q&A to help you determine which plan is right for you.
- Visit UC's Open Enrollment website and virtual Systemwide Benefits Fair to find out details about 2023 choices, changes and costs.
- Check your postal mailbox for your Open Enrollment packet, including medical plan comparison charts.
Improving UC coverage with new benefits and resources
All UC non-Medicare medical plans: UC will enhance benefits for infertility services, with coverage of up to two treatment cycles of IVF, GIFT, or ZIFT procedures at 50% coinsurance (lifetime limit per eligible member).
Kaiser HMO: Kaiser will add coverage for lactation supplies and will cover additional forms of birth control without copay. Certain infertility outpatient diagnostics and outpatient mental health and substance use disorder services will also be covered without member cost-sharing.
CORE, UC Care and UC Health Savings Plan: Members will have a new resource to help them navigate their benefits: Accolade Health Care Advocate. Accolade health assistants and nurses will replace Anthem Health Guide as these PPO plan members' first point of contact for help with health benefits questions, big or small.
UC Health Savings Plan: Health FSA participants will have the option to switch to UC Health Savings Plan without losing their carryover FSA balance. UC Health Savings Plan in-network deductible will increase to $1,500 for individuals and $3,000 for families. The maximum contribution to the Health Savings Account will increase to $3,850 for individual coverage and $7,750 for family coverage.
Legal insurance: The legal plan will enhance coverage for estate planning, mediation and more, with no changes to premium costs.
Monthly premium increases for some plans
Unfortunately, medical premiums continue to increase annually for employers nationwide, including for UC.
For 2023, monthly premium increases will vary depending on the plan you choose and who you cover (increases do not vary by your salary range):
- Kaiser HMO: $1.93 (self) to $5.79 (family)
- UC Health Savings Plan: $4.47 (self) to $13.37 (family)
- UC Blue & Gold HMO: $15.32 (self) to $45.92 (family)
- UC Care: $27.29 (self) to $86.16 (family)
Costs for Voluntary Short-Term Disability will increase an average of $4 per month.
Log in to UCPath starting Thursday, Oct. 27, at 8 a.m. to make your benefits elections, and be sure to finalize and submit your choices by Friday, Nov. 18, at 5 p.m.
