With health care costs rising significantly nationwide, the university is raising insurance premiums in 2006 for many UC employees while also protecting those who can least afford it.

Employees at lower salary levels and with single-party coverage or one adult with children coverage will find that costs will increase only slightly or even fall in some cases. On the other hand, most of the large rate increases will affect those with coverage for two adults and families and in the mid- to high-salary levels. Meanwhile, employees enrolled in Blue Cross of California will enjoy significant premium decreases for 2006 at all salary band and coverage levels.

Under open enrollment, which runs from Nov. 1-30, employees can make changes to their benefits plans — new coverage will be effective Jan. 1, 2006. During open enrollment, one can transfer to a different medical or dental plan; enroll or re-enroll in Dependent Care and Health Care Reimbursement Accounts; add eligible family members; and opt in or out of UC-sponsored medical, dental, vision plans, and/or the Tax Savings on Premiums program.

This time around, employees can enroll in Supplemental Disability Insurance or change a waiting period without a statement of health.

"A combination of interest from employees and positive funding has allowed the university to open up Supplemental Disability Insurance this year as a one-time event," said Liz Hansen, campus benefits manager.

Rate increases vary

Another change will allow employees to apply unused 2005 Health Care Reimbursement Account (HCRA) and Dependent Care Reimbursement Account (DepCare) balances to eligible expenses incurred through March 15.

While the total increase in all UC health premiums amounts to about 6.4 percent, Hansen said, rate increases vary among the different carriers, salary bands and coverage levels.

For example, an employee signed up with Blue Cross Plus for self-plus-children coverage and making $40,000 or less in 2006 will now pay a $101.18 monthly premium, down from $107 in 2005. On the other hand, an employee making between $40,000 to $80,000 and signed up for the family plan through PacifiCare will now pay $112.81 monthly, up from $89.69 a month in 2005, or a 25.8 percent increase.

Also, the co-payments for office visits under all HMO plans — HealthNet, PacifiCare, Kaiser Permanente and Western Health Advantage — will increase from $10 to $15.

The university has increased its contribution to employee health care coverage this year to minimize the financial impact on employees. The UC has continued an income-indexed approach that allows those who earn less to also pay less for their health care. Employee contributions are based on four salary bands — $40,000 or less, $40,000-$80,000, $80,000-$120,000, and more than $120,000.

UC in 2006 will continue to pay for most of the costs for employee health insurance. For example, for the majority of employees in UC plans, the university pays about 88.1 percent of the total premium cost.

Monthly premiums for UC's dental plans and the Vision Service Plan will continue to be fully paid by UC in 2006. There will be some dental plan benefit enhancements. Meanwhile, health care costs for employees in clerical, nurse, and research support and technical bargaining units will be subject to negotiations currently under way.

UC has mailed employees a brochure that gives a general summary of the costs for medical plans. Changes can be made online at http://atyourservice.ucop.edu.