SUBJECT:  UC Medical Plan and Open Enrollment

Later this month, UCSD faculty and staff will receive 2004 benefits information in preparation for the Open Enrollment in November, the annual opportunity for employees to review their benefits enrollment and make changes according to the options available. This notice serves to summarize important information regarding UC health benefits.

Throughout the country, employers are being challenged to manage 2004 medical plan costs in the face of soaring health care insurance premiums. National surveys indicate that more employers are reducing the number of medical plans they offer, eliminating benefits, and passing on to employees numerous types of cost increases.

Despite the sharp rise in the cost of health insurance--and despite the difficult economic environment and significant state budget reductions--the University remains deeply committed to maintaining access to quality health care and to preserving a range of choices that both reflect and serve the diverse needs of its members.

Here are a few important announcements regarding the 2004 UC Medical Plan:

* Out-of-pocket expenses - There will be no increases to deductibles or
   co-pays.
* Premiums - UC will continue to shoulder the vast majority of the costs
   for health insurance. There will, however, be increased monthly
   medical premiums for faculty and staff. The premium increases are on
   average less than those paid by CalPERS members, and will be prorated
   to keep the insurance affordable for lower-paid employees.
* Number of plans - UC will not cancel any plans for 2004.
* Vision, dental, other coverage - UC will continue to provide dental
   and vision coverage, and basic life and disability insurance at no
   cost to employees.

The following Web pages provide more detailed information about the 2004 UC Medical Plan and the coming Open Enrollment, including Web-based enrollment changes, open eligibility for the legal plan, decreases in employee paid life and disability premiums, and this year's Benefits Fair:

* Blink -
http://blink.ucsd.edu/go/openenroll

* HR Benefits Review newsletter -
http://atyourservice.ucop.edu/forms_pubs/newsletters/hrb_2003_sept.pdf

                                                Rogers Davis
                                                Assistant Vice Chancellor -
                                                Human Resources