The UC system's expense for employee medical care premiums is increasing $91 million next year, but that does not mean every employee will see his or her share of the cost go up.

In fact, about 36,000 of UC's 110,000 employees with medical coverage (including roughly 21,000 lower-paid staff) will see their premiums decrease anywhere from 6.7 percent to 64 percent. For example, an employee with Kaiser Permanente coverage for his or her family will pay $15.48 a month in 2009, a savings of $3.38, or nearly 18 percent.

The rest of the eligible work force will see their premiums go up, but not as much as they could have. For example, Health Net premiums for the lowest-paid staff are going up about 5 percent (from $82.83 to $87.10 for family coverage, an added $4.27 per month), while the total cost to the university is going up about 11 percent (from $1,127 to $1,253, an added $126 per month).

How are employee costs going down when the university's costs are going up? With a $5.2 million, one-time subsidy from UC's "rainy-day" fund for health and wellness benefits, said Bill Brooks, benefits manager for UC Davis Human Resources.

"The system has been saving money for tough years like this one," he said. It is a tough year for two reasons: escalating health care costs, and the state and nation's economic doldrums.

With the subsidy, UC will continue to pay an average of 87.5 percent of premium costs.

Also, the university will continue its system of assessing employees based on salary. Four salary bands are in place: the less you make, the less you pay.

The end result for the lowest paid employees (earning $46,000 or less annually) is that the university will pay 93 percent to 96 percent of premiums.

Overall, the university's expense for employee health benefits will reach nearly $1 billion.

In other news regarding 2009 benefits, employee co-pays and deductibles will stay the same, and the university will continue to pay 100 percent of dental and vision premiums. The legal plan is not accepting new enrollments in 2009.

Other than premiums, the biggest change in benefits is a switch in administrators for flexible spending accounts -- used by employees to voluntarily divert pretax dollars for health care or dependent care. (These accounts formerly were known as health care and dependent care reimbursement accounts.)

UC officials said they put the contract out to bid in an effort to explore new options and provide employees with the best service available. CONEXIS emerged on top, with UC officials saying they expect streamlined claims processing and communications; system and security capabilities; and dedicated account service teams for UC benefits staff.

The switchover takes place Jan. 1 (see more information here).

Wellness benefit

The wellness benefit put in place last year will continue in 2009.

StayWell Health Management (for employees who are enrolled in any UC medical plan except Kaiser) once again invites all eligible employees and their covered spouses or domestic partners to complete health assessments, either online or on paper. The incentive is a gift card, which can be used at participating vendors, including the Activities and Recreation Center, which accepts the cards for specified fitness packages but not membership.

StayWell changes:

-- The gift card value is $100 (an increase of $25).

-- Spouses and domestic partners are no longer eligible for full-value gift cards; instead, they are eligible for $50 gift cards.

-- Last year, the program excluded dependent children, except those 18 and older. This year they are excluded, too.

(Note: Only one UC Davis union, the American Federation of Teachers, has agreed to participate in the StayWell program; employees represented by other unions therefore are not eligible for StayWell, unless they also come to agreement with the university.)

Kaiser offers its own wellness program, HealthWorks, in which patients who complete online health assessments are entered in quarterly drawings for gift certificates and other prizes.

AT A GLANCE

WHAT: Annual opportunity to make changes in benefits coverage.

WHEN: 8 a.m. Oct. 30 to midnight Nov. 25.

WHO: Anyone making a change, and anyone who wishes to renew or establish a flexible spending account. If you are not making a change, and do not want an FSA, you need not do anything during open enrollment.

HOW: Online, atyourservice.ucop.edu. Employees without computer access should contact their unit offices or Human Resources, (530) 752-0530 on the Davis Campus, or the HR benefits department, (916) 734-8099, on the Sacramento Campus.

Open enrollment events and other presentations on the Davis and Sacramento campuses.

A SAMPLING '09 HEALTH PLAN PREMIUMS