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<i>Sent on behalf of Senate Chair Ken Barish</i></div>
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Dear Colleagues,</div>
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The message below from Jay Henderson, Director of Total Rewards in UCOP Human Resources was sent to the University Committee on Faculty Welfare last week and may be of interest to you. It summarizes upcoming changes to UC employee medical insurance plans,
including cost increases for premiums, co-pays, and prescription drugs, and UC HR’s plan to communicate these changes to all UC faculty, staff, and retirees in advance of Open Enrollment, which begins October 31.</div>
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Thank you,</div>
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Ken Barish, Chair</div>
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Riverside Division </div>
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<b>From:</b> Jay Henderson <<span style="color: rgb(70, 120, 134);"><u><a href="mailto:Jay.Henderson@ucop.edu" id="OWAfeb7b84d-e055-b06b-0450-90413083af75" class="OWAAutoLink" data-linkindex="0" style="color: rgb(70, 120, 134); margin: 0px;">Jay.Henderson@ucop.edu</a></u></span>><br>
<b>Sent:</b> Thursday, October 3, 2024 2:11 PM<br>
<b>To:</b> <span style="color: rgb(70, 120, 134);"><u><a href="mailto:pardoguerra@ucsd.edu" id="OWA753f590e-d9b6-ae62-ff61-f36188fdb4ba" class="OWAAutoLink" data-linkindex="1" style="color: rgb(70, 120, 134); margin: 0px;">pardoguerra@ucsd.edu</a></u></span>;
klbales <<span style="color: rgb(70, 120, 134);"><u><a href="mailto:klbales@ucdavis.edu" id="OWA6271163c-e2fa-26f3-2907-5bb7b71ca8f3" class="OWAAutoLink" data-linkindex="2" style="color: rgb(70, 120, 134); margin: 0px;">klbales@ucdavis.edu</a></u></span>>;
Kenneth Feer <<span style="color: rgb(70, 120, 134);"><u><a href="mailto:Kenneth.Feer@ucop.edu" id="OWA235c5293-6e71-d353-a9f4-f54f03916ff8" class="OWAAutoLink" data-linkindex="3" style="color: rgb(70, 120, 134); margin: 0px;">Kenneth.Feer@ucop.edu</a></u></span>><br>
<b>Subject:</b> 2025 Health Benefit Plans Changes</div>
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<b><u>UC Faculty Welfare Committee</u></b></div>
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Colleagues,</div>
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As we approach our annual Open Enrollment for health benefits, I want to share what we know about UC’s medical plan costs for 2025 and update you on how we’re preparing for 2026 and beyond. Our goal is to provide information as early as possible to you and
other key stakeholders. This message includes information VP - Systemwide Human Resources Cheryl Lloyd recently shared with UC leaders. She will also be sending communication to UC employees and retirees so that they can make informed decisions about their
benefit plans.</div>
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The national trends that increased medical costs and medical plan premiums last year have continued. UC’s medical plan costs will rise again this year due to increased health care utilization as our population ages and rates of chronic health conditions rise,
enhanced benefits, and the rapidly expanding use of costly new drugs and treatments.</div>
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To limit the impact of rising costs on employees and retirees, the decision was made, in consultation with President Drake, EVP-COO Nava, EVP-CFO Brostrom and VP Lloyd, to increase UC’s 2025 contribution to medical premium by $198M over 2024. Even with this
additional commitment, employee and retiree contributions will need to increase as well.</div>
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Budgeting for the high costs of food, housing and childcare is already a challenge for many in our community, so any increase is painful. Our people are our most important resource, and the Systemwide Human Resources team has spent the last year working closely
with our health plan partners to look for every opportunity to balance the quality of our benefits with their affordability. We’ve also spent months analyzing how UC can minimize the impact of higher costs in a challenging budget year.</div>
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To rise to this challenge, we’re focusing on a principle that is central to our mission — the critical importance of health care equity and access. We understand 2024 employee contributions were significantly higher than anticipated and explored multiple options
to mitigate increases for 2025. As a result, employees will see no more than an 11% increase (with exception of the CORE plan) in 2025. Additionally, employee contributions will continue to be based on salary, with higher employee contributions and percentage
increases for those who earn more.</div>
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<b>Significant Health Plan Changes for 2025</b></div>
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• With the exception of those enrolled in CORE medical, employees with annual salaries up to $140K a year will see 9% increases in their medical plan premiums and employees with annual salaries over $140K a year will see 11% increases.</div>
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These increases are consistent with other public employers in California. For example,
<span style="color: rgb(70, 120, 134);"><u><a href="https://www.calpers.ca.gov/page/newsroom/calpers-news/2024/calpers-announces-2025-health-plan-premiums-and-expanded-cost-saving-options-for-members" target="_blank" id="OWAc3235338-aa82-6041-eec6-4ff809e25438" class="OWAAutoLink" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="4" style="color: rgb(70, 120, 134); margin: 0px;">CalPERS
has announced</a></u></span> an overall premium increase of 10.79% for 2025.</div>
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Retiree contribution changes for UC’s retiree plans are more variable, with UC maintaining its agreement to fund a minimum of 70% of the cost of retiree medical plan premiums.</div>
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• To ensure that the costs of medical coverage are shared fairly, the CORE PPO plan will require an employee premium contribution beginning in 2025. Contributions for CORE will be the lowest of the UC medical plan options, but we know this is a big adjustment
for UC employees who have appreciated the option of a plan that did not require a premium contribution. We will do all we can to help those employees understand their choices and consider carefully whether CORE is still the best option for them.</div>
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• To help minimize premium increases, some of the costs for receiving care and filling prescriptions will go up next year. For example, the copay for an outpatient visit will increase from $20 to $30 for members of UC Blue & Gold HMO, Kaiser HMO, UC Care (UC
Select/Tier 1), UC Medicare Choice and Kaiser Senior Advantage — the first such increase for these plans in over 10 years. Copays for prescription drugs will go up for most of UC’s medical plans, and there will be a new drug tier for specialty drugs that will
have 30% coinsurance, up to $150 per prescription, for UC Blue & Gold HMO and Kaiser HMO.</div>
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<b>Communications</b></div>
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Systemwide Human Resources and Communications are collaborating on a comprehensive communications plan regarding the benefits changes for 2025. Prior to and during Open Enrollment, which runs from October 31 – November 22 this year, faculty, staff and retirees
will receive multiple communications via postal mail and email from UCOP and their local benefits offices, regarding the benefits program for 2025 and how to make changes to their elections, should they wish to do so.
<span style="color: rgb(70, 120, 134);"><u><a href="https://start.myalex.com/uc/" target="_blank" id="OWA95d0f3bf-4a87-4389-7795-efe1d28d60b4" class="OWAAutoLink" rel="noopener noreferrer" data-auth="NotApplicable" data-linkindex="5" style="color: rgb(70, 120, 134); margin: 0px;">ALEX</a></u></span>,
the benefits decision support tool that generates customized, personalized guidance for the selection of employee health and welfare benefits, will be updated with 2025 plan information and costs. ALEX provides users with the medical plan premiums specific
to their personal situation, including pay band and union membership.</div>
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<b> </b></div>
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<b>Preparing for 2026 and beyond</b></div>
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We owe it to the UC community to find and take every opportunity to control costs and protect the security and quality of UC’s benefits. To this end, we have been working with expert consultants on a large-scale analysis of our overall benefits strategy and
priorities. Throughout all our work to ensure UC’s benefits meet the needs of our community, we will continue to seek out the counsel and engagement of faculty, staff, retiree and emeriti groups.</div>
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Please let me know if you have any questions. I look forward to our continued partnership in the year ahead.</div>
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Best regards,</div>
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Jay Henderson</div>
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AVP, Total Rewards</div>
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<p><span style="font-family: Tahoma, sans-serif; font-size: 9pt; color: rgb(241, 171, 0);"><b>__________________________</b></span></p>
<p><span style="font-family: Tahoma, sans-serif; color: rgb(79, 129, 189);">Cherysa Cortez</span></p>
<p><span style="font-family: Tahoma, sans-serif; font-size: 9pt; color: rgb(79, 129, 189);">Executive Director, Academic Senate</span></p>
<p><span style="font-family: Tahoma, sans-serif; font-size: 9pt; color: rgb(79, 129, 189);">University Office Building 221</span></p>
<p><span style="font-family: Tahoma, sans-serif; font-size: 9pt; color: rgb(79, 129, 189);"><a href="mailto:cherysac@ucr.edu" id="OWAeb7cc312-718e-3cfd-edb8-1db3ba2a6145" class="OWAAutoLink" style="margin-top: 0px; margin-bottom: 0px;">cherysac@ucr.edu</a> </span></p>
<p><span style="letter-spacing: 2pt; font-family: Tahoma, sans-serif; font-size: 9pt; color: rgb(79, 129, 189);"><b>UNIVERSITY OF CALIFORNIA RIVERSIDE</b></span></p>
<p><span style="font-family: Tahoma, sans-serif; font-size: 8pt; color: rgb(122, 110, 103);">CONFIDENTIALITY NOTICE: This e-mail communication and any attachments may contain confidential and privileged information for the use of the designated recipients named
above. If you are not the intended recipient, you are hereby notified that you have received this communication in error and that any review, disclosure, dissemination, distribution or copying of this communication is strictly prohibited. If you have received
this communication in error, please notify the Academic Senate Office immediately by telephone at (951) 827-6154 or email at
</span><span style="font-family: Tahoma, sans-serif; font-size: 8pt;"><a href="https://post.ucr.edu/owa/redir.aspx?SURL=IcX4ZK3lIEYWOXDpDmM3Vb7zrs4KkFK1mfplzYdNhPoqD7zfiJzSCG0AYQBpAGwAdABvADoAYwBjAG8AcgB0AGUAegBAAGUAbgBnAHIALgB1AGMAcgAuAGUAZAB1AA..&URL=mailto%3accortez%40engr.ucr.edu" target="_blank" id="OWA4d3c30b8-0742-d784-66d9-27bf52422e25" class="OWAAutoLink" style="margin-top: 0px; margin-bottom: 0px;">cherysa.cortez<at>ucr.edu</a></span><span style="font-family: Tahoma, sans-serif; font-size: 8pt; color: rgb(122, 110, 103);"> and
permanently delete all copies of this communication and any attachments.</span></p>
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