Tell UC You Oppose Shifting Healthcare Costs to UC Workers!

2008 Health Insurance Plans Announced

At a stakeholder meeting August 7, UC told the UC Union Coalition which health insurance plans they decided on for 2008.

UC drops 2-tier “high-low” plan. Responding to the strong and unanimous opposition of the UC Union Coalition to any “high-low” plans, UC announced they will not introduce a “high-low” plan. This is a big victory for the Union Coalition in protecting minimum levels of health insurance coverage for all UC staff.

UC drops PacifiCare. UC also announced that PacifiCare will no longer be offered as a health insurance option in 2008. This major disruption will affect 8,000-plus UC employees who currently have PacifiCare coverage. UC claims that there is only 1% difference in primary care providers and less than 10% difference in prescription formularies between PacifiCare and HealthNet. The Union Coalition insisted on inclusion in developing the transition appeal procedure for current PacifiCare employees and families who are in the middle of a critical medical treatment so their providers and/or drugs are not dropped January 1; UC said they will get back to the Union Coalition on this.

All other major plans to continue. UC announced that they were renewing all major plans except PacifiCare for 2008 (HealthNet, Kaiser, WHA, Blue Cross-Plus, Blue Cross-PPO, Blue Cross CORE). Earlier this year, UC said the only two plans that were guaranteed for 2008 were Kaiser and WHA (Sacramento-area HMO).

Union Coalition Demands Fairness, but UC Insists on Executives Getting Bargain Rates

With only 4 paybands currently, UC executives are not paying their fair share of the health insurance costs. The top payband covers all employees making more than $129,000, even though many executives make more than $200,000.

The UC Union Coalition again this year demanded that UC create a payband 5 for its highest paid executives so they pay a similar percentage of salary to all other UC staff. Yesterday UC again refused to correct this inequity.

“Double-Digit” Cost Increases for 2008

Double-Digit Increases. UC said the rates they pay the carriers will increase by “double-digits” again in 2008. This is extremely bad news for UC employees.

Despite efforts to gain specific information on the projected premium costs to UC and to employees, UC refused to give a more precise figure than “double-digit”, insisting they would not have more precise numbers until mid-September.

Cost-Shifting Must Stop

Huge Cost-Shifting Expected. UC plans on capping their health insurance costs increases to well below “double-digits”, and shifting all remaining increases directly onto the employees. In 2007, what happened as a result of this cost-shifting is that employee rates increased 38%, even though UC’s rates only went up 11.7%.

UC Employees cannot afford to pay more. UC employees cannot afford another year of 38% rate increases like last year. The UC Medical Centers are highly profitable and can afford to pay more. And UC as a whole needs to redirect more funds for health insurance costs.