UC Blue & Gold Supplemental Subsidy Ending for Calendar Year 2027
The supplemental subsidy for UC Blue & Gold HMO will sunset in December 2026.
The supplemental subsidy aligned Blue & Gold employee premiums with Kaiser HMO rates under a time-limited program that was unique to the Davis campus, UC Davis Health and UC ANR.
Employees will have multiple plan options at different price points in 2027, and carefully reviewing your costs and coverage options will be very important.
Background
The supplemental subsidy was introduced when the Western Health Advantage insurance plan was discontinued as a UC option, helping lower premium costs for employees who transitioned to UC Blue & Gold to retain access to UC Davis Health providers.
Although we were able to extend the subsidy to a sixth year, UC Davis was the only UC location offering this supplemental subsidy, creating an inconsistency in Blue & Gold premium structures across UC.
Beginning January 2027, UC Davis will use the same systemwide UC Blue & Gold premiums as all other UC locations.
All UC locations will continue to subsidize approximately 85% of medical premium costs overall. Further, represented employees' rates are subject to collective bargaining agreements, many of which include monthly premium subsidies and/or caps on premium increases that may reduce the impact on employees.
Recent 2027 Plan Details from UC
UC Office of the President (UCOP) has begun sharing 2027 plan details with UC Blue & Gold members. A recent mailer highlighted two changes:
- Out-of-pocket Maximum
Will increase to $3,000 for individual coverage and $6,000 for family coverage. Employees can help offset these costs by contributing up to $3,400 annually to a Flexible Spending Account (FSA), which uses pre-tax dollars to pay for eligible health care expenses. - Behavioral health visits
Will have a $30 copay beginning with the first visit — a change that applies to all UC medical plans. Fortunately, UC Davis, UC Davis Health and ANR employees and their eligible family members have access to no-cost, confidential counseling through the Academic and Staff Assistance Program (ASAP). ASAP is available to provide short-term counseling and connections with community providers for longer term counseling.
Full details about 2027 medical plans will be available from UCOP closer to Open Enrollment and emailed directly to all benefits-eligible employees.
What Happens Next
Employee communications will continue throughout October, with full rates and plan details available from UCOP closer to Open Enrollment on Oct. 29.
Employees will be able to compare their specific 2027 rates and be guided through plan options using ALEX, UC's virtual benefits guide.
We recognize that higher premiums affect employees and their families. During Open Enrollment, we encourage employees to carefully review their individual rates and provider access and plan options, including lower-premium options that may help minimize increases.
Questions?
Employee Benefits will offer multiple virtual and in-person help desks and presentations to help employees understand their options. Questions can also be directed to [email protected].