By Vic Cox

Starting Jan. 1, 2006, some UC health plans will have significantly higher premiums for employees in upper-salary categories, and all HMO plans with co-pays will see a 50 percent increase for office visits.

Definity Health plan is the major exception, said Laura Morgan, health care facilitator with UCSB Human Resources. Next year, all of their premiums for participants making $80,000 or less stay the same as in 2005, or drop.

With office visits going up in 2006 to $15 for HMO members, employee-paid premiums could be held to about the same as in 2005 for a single adult or for single adults with children, Morgan pointed out. This is the case, for example, for Health Net and PacifiCare members making salaries of $80,000 or less. “Over all, UC felt this strategy would benefit the most employees,” she said.

However, employees with Health Net or PacifiCare who have coverage for two adults or two adults with children will see 2006 premiums jump roughly $17 to $24 a month, depending on salary.

UC has also negotiated a slightly more favorable arrangement with Delta Dental if members choose to use preferred dentists. Details will be provided in the next issue of 93106.

Another significant change for many UC employees is that next month’s 30-day Open Enrollment will offer supplemental disability insurance without requiring a medical examination of applicants. UC provides all employees six months’ disability coverage of $800 a month; employee-paid supplemental coverage could replace up to 70 percent of an employee’s income for years, depending on various factors.

In the usual course of events, eligible employees have the opportunity to add supplemental disability during their Period of Initial Eligibility (PIE), which lasts for 31 days. But this is the first time in nearly 15 years that that the plan has been available through Open Enrollment, according to Judith Boyette, UC associate vice president, Human Resources and Benefits.

After the PIE expires, the insurer, Liberty Life Assurance Co., requires a Statement of Health, and may require a medical exam, from the applicant before considering approval of added coverage or reduction of the waiting period. Medical exam costs are borne by the applicant.

While a new opportunity to protect income may be welcomed by eligible employees who want more than the UC-provided disability coverage, it is not equally advantageous to everyone, UCSB HR officials point out. There is a maximum benefit period for supplemental disability coverage and this type of insurance ceases once the employee leaves UC or retires.

“It gets tricky as you get older and have many years vested in the UC Retirement Plan,” said Lisa Romero, HR benefits analyst and disability insurance supervisor. Besides age, other variables include the length of the waiting period before the benefit kicks in and one’s salary level. A calculator to estimate individuals’ premiums is online at <http://atyourservice.ucop.edu/online_actions
/insurance_premium_est/index.php>.

More information on UC disability coverage is available at HR’s Web site: <hr.ucsb.edu/benefits/disability.php>.