UC President Mark G. Yudof has announced that UC is using a multipronged approach to its 2009 health insurance program designed to help shield employees from escalating health care costs.

In addition to a one-time special 2009 subsidy, 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 such as co-pays and deductibles will not increase.

“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,” said Yudof. “We continue to work very hard to ensure they have access to quality health benefits.”

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, Yudof said 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 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.

UC officials also noted that 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 preventative care that were expanded in 2008. Additionally, employee dental and vision benefits will continue to be fully paid by UC.

For more details about UC’s 2009 health insurance rates, go to <http://atyourservice.ucop.edu/news/health/09medplan_costs.htm>.