UC Medical Benefits to Increase in Premium Costs, Copays

Changes are coming next year to costs of medical benefits in all three plans in which the majority of UCSB employees are enrolled, according to information from UC Employee Benefits Plan Administration in the Office of the President. Some dental and vision benefits will stay the same or improve slightly, but employees are looking at shouldering a larger portion of health care expenses.

This is not just a UC phenomenon, pointed out Tricia Hiemstra, campus benefits manager. The health care industry has substantially boosted its rates across the state and nation. A national survey of employers by the Kaiser Family Foundation found an average 11 percent health insurance premium increase in 2001, the largest since 1992. Other surveys pointed to 15 percent increases and up for next year.

UC negotiated a 12 percent average premium increase for 2002, Hiemstra said, but the state budget provided for only a 9 percent rise. The difference, in effect, was split between raising the premiums and the copays. "UC took the middle ground," she explained, making it slightly more expensive to have other than basic health coverage and also increasing the cost of using these services. This is how it will work out:

While PacifiCare is offered at zero cost, its copays will increase; both HealthNet and UC Care monthly costs and copays will also rise on Jan. 1, 2002. For example, HealthNet monthly fees for singles will be $5.04 and $13.60 for families. Copays for office and emergency room visits in this example will rise to $10 and $50, respectively, and a new $250 copay has been added to each hospital admission.

Prescription drug copayments will double for most categories of drugsÑgeneric, brand name, nonformulary, and mail order drugsÑfor people in the HMOs. As of January, PacifiCare and HealthNet will charge $10 for generics and $20 for brand name medicines; likewise, mail order copayments jump to $20 for generics, $40 for brand names, and $70 for nonformulary drugs.

Dental and vision plans remain free of monthly charges, and small improvements have been made. Both Delta Dental and PMI have extended age limits for sealants on minors' molars. Polycarbonate lenses will now be covered under the Vision Service Plan. These and other details are found under "Plan Highlights for 2002" when you enter the Open Enrollment section of <www.ucop.edu/bencom/oe>. The same information was sent to employees by mail.

Though no Wellness Faire has been organized as part of Open Enrollment, information sessions are being sponsored by Human Resources' Benefits Office. These meetings in SAASB 3101 started last week and continue today at 9:30 a.m. and Wednesday, Nov. 7, at 1:30 p.m. The remaining sessions are set for Nov. 13 (9:30 a.m.), Nov. 15 (1:30 p.m.), and Nov. 20 (1:30 p.m.). Call x2489 or x2042 for more details.