For now, the Runaway Train on retiree healthcare has been put on a siding - Part 2

An official announcement was issued yesterday that confirms that the current Health Net plan for retirees is being replaced by a Medicare Advantage plan. It is reproduced below. As noted, the other plans will continue in their current form. There is no specific information on cost. Blog readers will know that there is no evidence of outsize health cost pressures in the economy at present.

UC to offer new Medicare Advantage PPO plan for 2020

Tuesday, July 23, 2019

After a thorough review of proposals, UC has entered into an agreement with UnitedHealthcare to offer UC retirees a new Medicare Advantage Preferred Provider Organization (MA PPO) plan beginning Jan. 1, 2020. The new plan will replace the Health Net Seniority Plus Medicare Advantage HMO beginning in the next plan year (2020). UC’s other Medicare plans, including the UC Medicare PPO and UC High Option Supplement to Medicare plans administered by Anthem and Kaiser’s Senior Advantage plan, will continue to be available in 2020. You do not need to take any action at this time.

This decision was guided by the findings of an evaluation team that included representatives from the Academic Senate, the Council of UC Emeriti Associations, the Council of UC Retiree Associations, and others. That group’s analysis determined that an MA PPO would offer a number of advantages for UC retirees, including comprehensive coverage at a lower premium than other plan options and the ability to see any provider that accepts Medicare (both in-network and out-of-network).

Systemwide Human Resources is working closely with UnitedHealthcare to finalize details of the plan offering so UC retirees are able to make informed decisions about their benefits for next year, and those enrolling in the new plan will be prepared for the transition. Additional information and opportunities to ask questions will be available in the coming months leading up to Open Enrollment (Oct. 31 – Nov. 26, 2019). Please keep an eye out for news in New Dimensions, UCnet and other benefits materials.

Source: https://ucnet.universityofcalifornia.edu/news/2019/07/uc-to-offer-new-medicare-advantage-ppo-plan-for-2020.html
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Note: The prior report on this issue is at:
https://uclafacultyassociation.blogspot.com/2019/06/for-now-runaway-train-on-retiree.html