Important Information Regarding Changes to UC's Medical Plans for 2008

To: UCSC Academic and Staff Employees

From: Willeen McQuitta, Director, Staff Human Resources; Pamela Peterson, Assistant Vice Chancellor, Academic Human Resources

During Open Enrollment in November, UC employees and retirees will face important decisions about -- and changes to -- their medical benefits options for 2008.

As previously announced, the University has been exploring new options that help sustain UC's ability to offer affordable medical benefits and preserve quality and accessibility to medical benefits for UC employees, retirees, and family members in light of rising costs and other ongoing changes in the healthcare market.

As a result of this process, some of UC's medical benefits choices will change next year. The changes for 2008 include:

* Network HMO consolidation

* Enhanced mental and substance abuse benefits

* New wellness benefits

* A new health reimbursement account plus PPO plan option from CIGNA.

For more detailed information about these and other medical plan options for 2008, employees should go to At Your Service:

The University will update employees about medical benefits rates for 2008 as soon as they are finalized, which is expected in early fall.