HR Update; October 17, 2008
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In this Edition
- UC Protects Employees Against Rising Health Insurance Costs
- UCSF Fall/Winter Holiday Schedule
- UCSF Launches Website for CACSW
- UC Retirement Readiness Education Programs
UC Protects Employees Against Rising Health Insurance Costs
The annual Open Enrollment period is approaching—the time of year for employees to reassess their health and welfare benefits. The following provides an overview about employee health insurance rates for next year, and what the University has done to help preserve good employee health benefits and control costs.
UC is employing a multi-pronged approach to its 2009 health insurance programs designed to help shield employees from escalating health care costs. In addition to a one-time special subsidy for 2009, UC will continue its salary-based approach to health insurance whereby lower-paid employees pay lower monthly premiums than other UC employees, and employee out-of-pocket costs (e.g., co-pays, deductibles) will not increase. Additionally, employee dental and vision benefits will continue to be fully paid by UC in 2009.
“We recognize how important good health benefits are for our employees and their families, especially our lower-paid employees who are hit hardest by escalating health care costs, and we continue to work very hard to ensure they have access to quality health benefits,” said UC President Mark Yudof. “In addition to continuing to pay the majority of employee health insurance premium costs, as further protection for our employees we are also defraying a portion of employees’ increased share, which cuts in half the percentage increases our lower-paid employees would otherwise see for Health Net, our largest medical plan.”
Like employers nationwide, UC continues to see its medical insurance costs rise substantially. Total premium costs for UC in 2009 will increase 8.9 percent ($91 million) over 2008 costs. UC pays nearly $1 billion in employee health benefits annually. In addition to continuing to pay 87.5 percent of employee premium costs, UC will also be contributing a special one-time subsidy of $5.2 million for 2009, which will further offset employee rate increases.
With the additional one-time subsidy, approximately 36,000 of UC’s 110,000 employees covered by UC medical plans, including roughly 21,000 lower-paid staff, will see a decrease in their 2009 net monthly rates as compared to 2008. For example, employees earning less than $46,000 in the UC Kaiser plan will see a 6.8 percent ($0.44 per month) reduction for single coverage, and a 17.9 percent ($3.38 per month) decrease for family coverage. View the complete employee medical premium rate chart for 2009.
Examples of how the special 2009 subsidy will mitigate increases in net employee premiums:
| Employee earning $46,000 or less | Single Health Net | Family Health Net |
|
2008 employee share of monthly premium 2009 total gross monthly premium 2009 total gross monthly premium 2009 employee gross monthly premium 2009 employee net mo. premium w/UC subsidy 2009 % employee increase without UC subsidy 2009 % employee increase w/UC subsidy 2009 $ net employee increase/decrease
|
$16.86 $431.92 $413.19 $18.73 $17.73 11.1% 5.2% $0.87
|
$82.83 $1,252.57 $1,160.48 $92.09 $87.10 11.2% 5.2% $4.27
|
While many employers are attempting to control costs by cutting benefits, UC’s 2009 benefits remain unchanged from 2008, including programs for employee wellness, behavioral health, and preventive care that were expanded in 2008.
According to several national studies, employee monthly premiums nationwide are expected to increase between 8 and 10 percent for most medical plans. Studies also project employee costs (contributions and out-of-pocket costs such as deductibles and co-pays) will increase 8.9 percent in 2009.
Key facts about UC’s 2009 employee health insurance programs:
- UC’s average gross rate increase of 8.9 percent for 2009 is consistent with the range of expected increases nationwide as projected by national studies.
- UC will continue to pay the vast majority of employee monthly premium costs—87.5 percent on average.
- With the additional one-time subsidy, approximately 36,000 UC employees, including 21,000 lower-paid employees (those earning $46,000 or less), will see a reduction in their 2009 net monthly rates as compared to 2008.
- UC will continue to cover 93-96 percent of the total monthly medical premiums for the roughly 42,000 UC employees earning $46,000 or less.
- Employee medical plan co-pays and deductibles will not increase in 2009.
- UC will continue salary-based rate structure whereby lower-paid employees pay lower monthly premiums than other UC employees.
- UC expects to pay approximately $967 million toward employee health benefits for 2009. The additional one-time subsidy for 2009 will cost UC an additional $5 million.
- Employee health insurance rates will be subject to collective bargaining where applicable.
Mark Your Calendar
- Open Enrollment for UC employees and retirees: 8 a.m., Thursday, Oct. 30, to midnight Tuesday, Nov. 25
- UCSF Open Enrollment Fair: October 30, 10 a.m – 2 p.m., Parnassus, Faculty Alumni House
UCSF Fall/Winter Holiday Schedule
Please note that UCSF will be observing the following holidays:
Veterans’ Day
- November 11, 2008 (Tuesday)
Thanksgiving Holiday
- November 27, 2008 (Thursday)
- November 28, 2008 (Friday)
December Holiday
- December 25, 2008 (Thursday)
- December 26, 2008 (Friday)
New Year’s Holiday
- December 31, 2008 (Wednesday)
- January 1, 2009 (Thursday)
Campus department heads may choose to close their departments from Monday, December 29, 2008, through Friday, January 2, 2009, or any portion thereof, based on operational needs. Any department that decides to close during the holiday should contact Labor/Employee Relations as soon as possible to ensure compliance with applicable collective bargaining agreements.
If a department is closed, employees will be allowed to take days off and charge them to accumulated vacation, compensatory time off, or leave without pay. Additionally, only in those campus departments that will be closed, for newly appointed employees or other employees who have insufficient vacation leave accrued, departments may advance the necessary amount of vacation leave prior to the time it is accrued in order to ensure continued paid leave status.
If you have any questions regarding the holidays, please contact your Labor/Employee Relations Analyst in the Human Resources-Client Services Center (general extension is 476-3905) for campus staff employees. For Medical Center staff employees, you may contact the Medical Center Human Resources Department (353-4012), or for academic employees, the Academic Affairs Office (476-8123).
For future reference, view the administrative and academic calendars and communications.
UCSF Launches Website for CACSW
The Chancellor’s Advisory Committee on the Status of Women (CACSW) website provides UCSF information for women students, staff, and faculty on critical issues such as retention, promotion, and mentoring. It also provides information and links to resources and programs—helpful to UCSF women and community members—that address career development needs. The New Leadership and Professional Development Inventory summarizes mentoring and career development and brings together the campus’ resources for staff, faculty, and students.
With increasing numbers of women entering all of the professional schools here at UCSF, accessibility of information for programs to mentor and support women is needed. This website will provide information and links to help meet those needs.
UC Retirement Readiness Education Programs
Please pass this on to your colleagues, circulate invitations, post the actual scheduled workshops happening near your location, or otherwise re-broadcast these weekly reminders about our valuable (free) education programs for faculty and staff. Bring your lunch, your questions, your spouse/partner ...
- UC Retirement Plan (UCRP)—UC’s Defined Benefit Plan
- “The Features of UCRP”
- Coming Again Soon
- Refer to these schedules for details and future workshops
- The Future of UCRP
- UC Retirement Savings Plans—the 403(b), 457(b), and DC Plans
- “Enrolling in Your UC Retirement Savings Program”
- October 27, Parnassus, HSW – 303, 11:30 a.m. – 12:30 p.m.
- “Determining Your Right Investment Strategy”
- October 27, Parnassus, HSW – 303, 1:00 p.m. – 2:00 p.m.
- “Achieving a Sound Retirement”
- October 27, Parnassus, HSW – 303, 2:30 p.m. – 3:30 p.m.
- “Understand the How-tos of Fidelity’s NetBenefits Website”
- Coming Again Soon
- Refer to these schedules for details and future workshops
- Arrange to have these workshops at a meeting in your department
- Focus on Your Future!
Usually there can be at least one (or more) workshop(s) per week scheduled at various UCSF locations around town. For more details and listings for upcoming scheduled presentations, please refer to our Workshops and Presentations Schedules menus found at our local UCSF HR/Benefits website.
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