Health Benefit Update AMP Conference 2019

1. Health Benefit Update AMP Conference 2019 Sarah Latham, Vice Chancellor Business and Administrative Services, UC Santa Cruz Marianne McIvor, Health Care Facilitator, UC Santa Cruz

2. Thank you! Your work makes a difference.

3. National Context • Main findings: • Health benefits cost is still outpacing inflation and workers’ earnings growth. • Prescription drugs – specialty drugs in particular – remain a top cost driver. • When asked to identify the strategies that will be the most important for the next five years, midsized and large employers: • “Managing high-cost claimants” and “creating a culture of health” ranked at the top of the list • “Creating a culture of health” moved up a place in 2018 – in 2017 it was ranked third. • Behavioral health strategies were rated as important by 47% of employers Mercer National Survey of Employer Sponsored Health Plans

4. UC Program Overview

5. UC Using Data to Drive Benefits Strategy • UC is uniquely situated as both a provider of health care and an employer that offers health care coverage. UC looking at health analytics to help drive the benefit program strategy.

6. Strategy for 2019 plan year • Maintain status quo with the HMO plans offered • Continue relationship with Anthem to refine and enhance features for members enrolled in the UC PPO plans (UC Care, UC Health Savings Plan and Core medical).

7. HMO Plans • Rebranded Health Net Blue & Gold to UC Blue & Gold HMO (reaching a multi-year contract with the medical plan). • Continuing to offer Kaiser Permanente HMO. • Changed behavioral health provider from carve-out plan to a Health Net company, Managed Health Network (MHN) to better align medical and behavioral health provisions. Campus Fact: At UC Santa Cruz, Kaiser only became recently available as a choice for Santa Cruz county residents in 2017. In 2019, California Department of Managed Health provided approval for Kaiser to offer Medicare-coordinated coverage for Kaiser members. This has created a new, modestly priced health care option to Santa Cruz county residents and UC Santa Cruz families (and has promoted competition with the other health care providers in the area).

8. PPO Plans • Effective January 2019, UC expanded health plan eligibility to domestic partners of any age. (UC had previously offered same-gender domestic partner health and retirement plan benefits going back to 1998 and health and retirement benefits for those aged 62 and older prior to the policy changes for 01/01/2019.) • UC promotes family friendly resources for staff, e.g. taking time off to volunteer for a field trip (up to 40 hours per year for your child’s school activities); caring for family members under FMLA; Military Caregiver Leave. UC also provides access to Bright Horizons web-based family care resource to help faculty and staff balance work and family responsibilities.

9. Stigma-Free UC • “Mental health issues touch all of us. For example, anxiety and mood disorders appear in nearly every family; suicide rates are climbing; rates of ADHD and autism spectrum disorders are soaring. Although our understanding of, and treatment options for, mental illness have expanded dramatically over the past 60 years, public attitudes have largely remained unchanged. Stigma persists, preventing too many people from getting the help they need.” • Stephen Hinshaw, Professor of Psychology, UC Berkeley and of Psychiatry, UCSF.  Early 2019, UC wrapped up the year-long initiative, Stigma-Free UC. This awareness campaign in support of UC faculty and staff’s emotional wellbeing held monthly programming with webinars, on-line discussions and links to resources to foster open and positive discussions about behavioral health. The program’s intention was to promote compassion and empathy through listening and education in order to develop an understanding of complex and often misunderstood topic of behavioral health, including substance abuse. See also: https://shr.ucsc.edu/benefits/workshops/stigma-free-uc.html

10. Retirement Benefit Program • Program overview: • 1. Primary Retirement Benefits: Pension or Savings Choice options for newly-hired/newly-eligible faculty & staff. • 2. Voluntary Retirement Savings Program: Tax-Deferred 403(b) and 457(b) Plan. • 3. Retiree Health Benefits: Retiree medical and dental benefits with continued University contributions for as well as access to optical, legal and life insurance benefits under group plan rates to reward service to the University.

11. Retirement Benefit Program Retiree Health Benefits Working Group was established in January 2018. After reviewing the retiree health benefits programs and modeling of program alternatives, the Working Group submitted an interim report in July 2018. The Working Group’s recommendations included modifying the contributions of non-Medicare retirees over 55; making no other immediate plan changes due to that year’s modest cost increase; and continuing its work to address longer-term issues.

12. Retirement Benefit Program • UC launched myUCretirement.com in 2015, replacing the annual Retirement Review, to allow for more tailored retirement planning experience. • UC also replaced the UC Retirement System database which had reached the end of functional life. The new pension administration record keeping system, called Redwood, launched in February 2019 and has the capability to serve as the system of record for UC retiree health and pension benefits for 138K+ unique members. • A new member-facing website will replace many of the functions currently on At Your Service Online and will be called UCRAYS (UC Retirement At Your Service). This is scheduled to launch in June 2019. UC RAYS member portal will have enhanced tools, e.g. to better help members with Multi-tier membership and other complexities, and allow for more efficient retirement processing and personalized support.

13. Retirement Education What’s ahead: In 2019, UC builds upon the retirement education program with a newly redesigned Pre-Retirement Planning series to offer comprehensive retirement education. Includes: finding fulfillment in retirement; income planning; UC Pension and Retirement Savings Program; Social Security; retiree health coverage; and UC retirement process. Campus Fact: At UC Santa Cruz, we have been offering an annual, six-part Pre-Retirement Planning program over several weeks each spring for the past decade, offering all of the above as well as estate planning and workshops for retiring faculty members.

14. Renew and Thrive in UC • Use confidants • Create a holding environment for yourself – create sanctuaries • Practice optimism and realism • Renew yourself "Thriving is much more than survival; thriving means growing and prospering in new and challenging environments. To thrive you need resilience (shock absorbers to remain steady over the bumps of the journey), robust strength (health and stamina), and renewal. Renewal is the active process of removing the plaque of tough experience and scars from the journey and returning to the core of your values and being. Renewal requires transformation of the heart and guts as well as the head." Heifetz, Linsky, & Grashow: The Practice of Adaptive Leadership: Tools and Tactics for Changing Your Organization and the World (2009)

15. The Unasked Question and Unspoken Idea • “Each day brings you opportunities to raise important questions, speak to higher values, and surface unresolved conflicts. Every day you have the chance to make a difference in the lives of people around you. And every day you must decide whether to put your contribution out there, or keep it to yourself to avoid upsetting anyone, and get through another day.” • Leadership on the Line, Heifetz & Linsky

16. QUESTIONS?