An update on your 2027 health benefits

Vice President of Systemwide Human Resources Dianna Henderson shared the message to the community below on Tuesday, Oct. 6, 2026.

Dear Colleagues,

I am writing to provide an update on the work of UC teams to shape the employee benefits program for 2027. The work is critical because the cost of healthcare continues to rise, and we recognize how much changes to health plan costs can affect employees and their families. UC has worked to limit those increases while continuing to offer comprehensive coverage and a range of plan choices. As explained below, this work has included increasing UC’s contribution by $294 million and limiting changes to the current plans.

What to know about your 2027 medical benefits

• For employees whose medical premium contributions are not set by a bargaining agreement, monthly increases for individual coverage will range from $6.58 to $29.24, depending on salary and plan choice. For represented employees, premium contributions are determined by the terms of their bargaining unit agreements.
• UC will continue to offer the same medical plans, with no anticipated changes to carriers or plan administrators. Health Net has confirmed that it will continue to administer UC Blue & Gold HMO through 2027. (Health Net will not seek to renew its contract with UC for 2028 and beyond; UC will work carefully to support an orderly transition to a new plan administrator for UC Blue & Gold and to minimize disruption for members.)
• Annual out-of-pocket maximums for Kaiser and UC Blue & Gold HMO will increase to $3,000 for individual coverage and to $6,000 for two-party and family coverage. (Annual out-of-pocket maximums for UC Blue & Gold HMO are currently $1,000 for individual coverage and $3,000 for coverage of a family of three or more. For Kaiser, they are $1,500 for individual coverage and $3,000 for family coverage.)
• Behavioral health office visits will continue to have a $30 copay for UC Blue & Gold HMO members, UC Care members and Kaiser members receiving behavioral health services through Optum. Next year, the copay will apply beginning with the first visit.

How UC is helping manage healthcare costs

We recognize that increases in premiums or out-of-pocket costs can affect how employees plan for healthcare. These decisions were not made lightly; UC took steps to limit the impact on employees while preserving choice, comprehensive coverage and access.

• UC will continue to cover, on average, over 85% of the total cost of medical premiums across pay bands and coverage tiers, contributing $294 million more than last year toward health benefits.
• UC Health is helping reduce underlying medical costs by limiting increases in what UC’s medical plans pay for care from UC Health providers.

Plan ahead for Open Enrollment

We are sharing this overview and answers to frequently asked questions now so you have advance notice of the most significant changes and can begin planning before Open Enrollment begins. The Open Enrollment website will launch on Friday, October 23, with clear information about what you will pay, what will change and how each plan compares. ALEX, our virtual benefits guide, will be updated with 2027 costs to help you consider your expected healthcare needs, preferred providers and estimated total costs, not just the monthly premium.

I encourage you to take time during Open Enrollment to review your options, even if you have been enrolled in the same plan for several years. Comparing plans can help you find coverage that fits your healthcare needs and budget for the coming year. As you compare, check each plan’s provider directory, since providers’ contracts with health plans can change over time.

Health benefits are an important part of the support UC provides to employees and their families. As the cost of maintaining high-quality coverage continues to rise, UC will manage these costs responsibly, use its scale and partnerships to secure value, and invest substantial University resources to help keep comprehensive coverage as affordable as possible for employees.

Thank you for the work you do every day on behalf of the University of California and the communities we serve.

Sincerely,

Dianna E. Henderson
Vice President, Systemwide Human Resources