SUBJECT:

Annual Open Enrollment Period

The annual open enrollment period began on November 1, 1996 and
extends through midnight, November 24, 1996. During open enrollment,
eligible employees may enroll in, or de-enroll from UC sponsored
medical, dental, and vision plans. Employees may also enroll in, or
de-enroll from the Dependent Care Assistance Program (DepCare), and
the Tax Savings on Insurance Premiums (TIP) program. Additionally,
DepCare participants may change their rate. Open enrollment is also
the time to transfer to a different medical or dental plan, and/or add
eligible dependents.

Open enrollment selections must be made through bencom, the
interactive telephone system, by calling 1-800-493-4833. Bencom's
open enrollment lines are available seven days a week, 24 hours a day,
beginning November 1, 1996. To access bencom, employees will use their
open enrollment access code which is printed on their personal open
enrollment data information sheet. Employees hired on, or after,
September 19, 1996, will not receive a personalized open enrollment
mailing. Employees who do not receive open enrollment material should
get an open enrollment informational booklet from their department
contact person, and may then use their personalized identification
number (PIN) instead of the open enrollment access code to make open
enrollment changes.

The campus Benefits Information Day is scheduled for Friday, November
8,1996, from 10:00 a.m. to 2:00 p.m. at the Price Center, Ballroom B.
The Benefits Information Day provides an excellent opportunity for
employees to confer directly with carrier representatives. Kaiser
Permanente Health Plan will offer free flu shots again this year to
employees with a valid UCSD identification card. Employees receiving
flu shots must complete and sign a Department of Health form, but do
not have to be enrolled in Kaiser Permanente. In addition, all campus
benefits representatives will be available to answer open enrollment
questions.

Some of this year's open enrollment highlights are:

Foundation Plan will be discontinued effective January 1, 1997.
Current Foundation Plan members may select another medical plan.
Members who do not elect other coverage will automatically be enrolled
in UC Care.

All UC-sponsored medical plans (except Foundation), and dental plans
will be open for enrollment or transfer.

For 1997 UC's contribution to the medical plan monthly cost has been
set so that at least one HMO plan is provided at no cost to employees.
The University continues to pay the entire cost for dental and vision
plans.

The TakeCare Health Plan and FHP, Inc. merger has been completed. The
plan name will change to FHP Health Care effective January 1, 1997.

Prudential High Option Plan premiums will increase again in 1997.
Current enrollees should carefully review the comparison announcement
notice between UC Care and Prudential High Option. The Health
Services Program (HSP) will be discontinued as a supplement to
Prudential High Option enrollees.

The percentage that Delta Dental pays for certain covered expenses
will increase effective January 1, 1997.

Employees will no longer need to request a pre-authorization form from
Vision Service Plan (VSP) prior to seeing a VSP doctor.

After this year's open enrollment, the Legal Expense Plan will not be
available for open enrollment every year. There is a rate increase
effective January 1, 1997.

If you have any questions regarding the annual open enrollment period,
you may contact the Benefits Office, extension 42816.

Rogers Davis Assistant Vice Chancellor - Human Resources