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 and Rate Details from UC

The 2027 Benefits FAQs provide an early look at what employees can expect, including:

• Medical premiums: For non-represented employees whose premium contributions are not set by a collective bargaining agreement, monthly increases will range from $6.58 to $96.22, depending on the plan, salary and coverage level. For individual coverage, increases will be approximately 9%, ranging from $6.58 to $29.24 per month. Represented employees' rates are determined by their bargaining agreements.
• Plan choices: UC will continue offering the same medical plans, with no changes to plan administrators for 2027.
• Out-of-pocket maximums: 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.

Read UC's Update on 2027 Health Benefits

What Happens Next

Full rates and plan comparisons will be available Friday, Oct. 23, when UC launches its Open Enrollment website. 

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].