U of California retiree health benefits working group summary: 4-9-2018

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Removal of High Option: Impact to UC The table compares the current Medicare costs for UC to the illustrative scenario where High Option is eliminated and no change is made to the Medicare PPO plan.

Medicare ($millions)

Original Cost

High Option Eliminated

Difference

Retiree

$73.6

$73.4

-$0.2

UC

$175.8

$175.6

-$0.2

Total

$249.4

$249.0

-$0.4

Savings as a % of UC Medicare plan costs: 0.1%

Since the plan designs for High Option and Medicare PPO are largely similar, migrating High Option members into Medicare PPO results in only minor cost savings for UC.

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PRE-DECISIONAL INFORMATION


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