Health Access Raises Concern Over UC Two-Tier Plan

Health Access Raises Concern Over UC Two-Tier Plan
July 25, 2007
BY FAX: 510 987 9209

Katherine Lapp
Executive Vice-President, Business Operations
University of California
1111 Franklin Street, Suite #12103
Oakland, CA 94607

Dear Ms. Lapp,

On behalf of Health Access, a statewide nonprofit advocacy coalition founded in 1987 and dedicated to achieving quality, affordable health care for all Californians, I write to voice our concern about UC’s proposed introduction of a two tier health benefit system for employees.

Health Access is strongly opposed to plans with high co-pays and deductibles because they jeopardize the health and financial well-being of those who hold them. We are deeply concerned that, given a high-low “option” such as that proposed by UC, low wage workers will choose a low monthly premium plan, will then delay needed care for themselves and their dependents, and will still be at risk of bankruptcy should a medical emergency arise.

Research published in 2006 by the RAND corporation on the role of consumer co-payments shows that, particularly for low-income individuals, there are large negative impacts on health from introducing high co-pays, and that those in poor health are at higher risk of dying in co-pay plans than in free care plans.

Research published in 2007 by the National Women’s Law Center found that plans with high out-of-pocket costs disproportionately harm women, who have higher out of pocket costs than men as a share of their income. This same study found that women are more likely than men to avoid needed health care because of cost, and that women are more likely than men to have medical bill and debt problems.

More recently, Health Access conducted its own research , which shows that having to meet a $5,000 deductible could nearly wipe out the worth of 40% of California consumers.

The University of California has been a great leader, through its health policy entities (e.g., the National Center of Excellence in Women’s Health at UCSF, the Berkeley Labor Studies Center, and the UCLA Health Policy Research Center), in providing research that helps policymakers to know what does and does not work to improve the health status and financial security of working Californians.

We urge UC to continue this leadership by making a commitment to provide quality, affordable health care for all of your employees. This commitment cannot be fulfilled, and can only be undermined, by the introduction of a “high-low” plan.

Sincerely,

Jessica Rothhaar

Health Access

cc: Judith Boyette, Associate Vice-President Human Resources and Benefits

fax: 510 587 6476

1 Gruber, Jonathan (2006), “The Role of Consumer Co-payments for Health Care: Lessons from the RAND Health Insurance Experiment and Beyond”, Kaiser Family Foundation

2 Patchias, Elizabeth and Waxman, Judy (2007), “Women and Health Coverage: The Affordability Gap”, The Commonwealth Fund

3 Quach, Hanh (2007), “Thin Protections: High-Deductible Plans Provide Little Comfort for Asset Poor Middle-Income Families”, Health Access