google-site-verification: googlea33552291e834fff.html Education: Health Care: Here we go Again?

Wednesday, August 27, 2014

Health Care: Here we go Again?

As you may know, there have been rumors of a significant rise in the co-payments that UC's health insurance plans require as part of coverage of "specialty drugs" that are often needed by the most endangered members of the workforce (people suffering from cancers, MS, HIV, liver ailments etc). In the aftermath of Union pressure and employee mobilization, Vice President Dwaine Duckett has announced that there will not be changes to the ways that "specialty drugs" will be treated by the different health care plans.

It is difficult to tell whether this was, in fact, a serious possibility that was pushed back by union activism or simply something floated in the course of discussions.  But it is a reminder that next year's UC health insurance options are in the process of being finalized and it is important for faculty and staff to keep their eyes open or contact their local HR offices about possible changes.

It is now a year since the debacle that was the roll-out and implementation of UC Care.  Although UCOP liked to emphasize the moderation of employee premium costs, it soon became clear that the shift to UC Care also shifted some costs onto employees for certain procedures, and that there was concern about new fees and reduced availability of physicians.  In fact, it was the example of UC Care that helped trigger the worry about the co-pays on specialty drugs. You may recall from analysis we posted last fall that one of the effects of UC Care was to raise the costs of specialty drugs dramatically.  In some cases individuals had to pay co-payments of up to 30% of the cost of drugs (although there were monthly and annual limits).  It is also the case that many employees doctors were no longer included in Tier 1 (thereby raising costs that way as well).

On top of this cost shifting there was the larger question of the reduced coverage offered to employees at non-medical center campuses.  The ultimate example of this, of course, was UCSB.  The only major hospital in the area Cottage Hospital refused Tier 1 coverage because of what UC was offering in payment. The only major clinic was pressured into a Tier 1 contract, but only for  one year.  It is unclear what, if any, Tier 1 coverage will be offered to UCSB this year.

Finally, people need to be aware that retiree health care for out of state retirees has been modified dramatically.  Since health care for employees looks like overhead to UCOP, further cuts are in the offing.

We have a number of old posts that you can check to refresh your memories of last year's UC Care roll-out and other changes.  Open enrollment is in two months so now is the time to raise issues or concerns with your local HR offices.

Employee Benefits Posts and Links

Remaking Posts:
Health Care Troubles and a Simple Solution (October 9, 2013)
The Plot Thickens on UC Care in Santa Barbara (October 10, 2013)
Some Further Questions About UC Care (October 12, 2013)
More on UC Care (October 15, 2013)
UCR Faculty Association Letter on UC Care in Riverside (November 17, 2013)
UCSB Health Care Update: The REst of Tier 1 is Yet to Come (November 23, 2013)
Obamacare and UC Care (December 9, 2013)
Union Logic of the Insurance Changes: the Case of Retiree Health Care (December 15, 2013)
UC Care Stories (March 14, 2014)
Further Troubles with UC Care (April 10, 2014)

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