[August 5, 2003]

The University of California will offer the Definity Health consumer-driven health plan as a new benefit effective January 1, 2004 to active employees at San Francisco and Santa Barbara during Open Enrollment this year. Coverage will be effective January 1, 2004.

With the University of Minnesota and Louisiana State University already offering Definity Health, UC becomes the third major university to offer this plan to its employees. Employer acceptance of consumer-driven healthcare is growing rapidly as organizations seek quality health coverage as well as options that allow their employees to have control over medical decisions, including responsibility for managing healthcare spending. These attributes make the consumer-driven model dramatically different from managed care, and the plan provides the UC community with an alternative healthcare option.

Under the Definity Health medical plan, UC employees pay first dollar medical services from a Personal Care Account (PCA) of $750/single and $1,500/family, which is funded by the University. Money remaining the in the PCA account at year-end may be rolled over and used for future medical and pharmaceutical expenses (while enrolled in the Definity Health plan). The plan covers 80% of cost of in-network services once the $1,500/single $3,000/family deductible is met. The deductible includes the PCA dollars. However, in-network preventive care is covered at 100% and requires no copayment.

As details and costs for this plan are being finalized, Benefits staffs at San Francisco and Santa Barbara are preparing email announcements to send to their employees. They are also planning informational meetings to introduce this new healthcare option. Employees at both locations should check their local HR/Benefits website for more information. Since the consumer-driven healthcare offers many online tools to help members make healthcare decisions, a customized Definity Health pre-enrollment website is under development for UC members.

Employees should be aware that until final details and costs for this plan are completed, Definity Customer Service and Benefits staff at the University are unable to provide details on the plan. Full details are expected to be available by September 1, 2003.

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