Shelly will revise the Oct. 16 draft letter, moving the second part to the first and rephrasing some of the elements of the first part to create a neutral tone. She will emphasize the possibilities of selective application. The amount that the University pays per employee is the cost of the least expensive option. The cost of that plan is driven down by the self-perceived good health of the employees. Each plan is in itself a separate risk group.
People choose the cheapest plan because they don t expect to use it much.
The amount the University would expect to pay might vary by the population. As it is now, the premiums vary by plan, but the university contribution is the same for everyone. If some employee wants more options, that person has to pay more. Discussion focused on the savings UC has had over the past ten years by following active managed care policies. As a result, UC has saved money, and the faculty have a health plan a with reduced benefit structure.