A message from Systemwide HR Vice President Cheryl Lloyd about your 2026 benefits

Dear colleagues: 

Open Enrollment starts on October 30, and I’m writing to let you know about a few big changes for next year. I’ll try to keep this short — you can find all the details in the 2026 benefits fact sheet on UCnet. The most important takeaway for you is that your plan options and costs are changing, so this is the year you need to open that packet when you see it in your mailbox. 

Health care costs keep going up nationwide, and that means your costs may also increase. While disappointing, this is something we have monitored and prepared for. Because of some big steps we’re taking together, we’re looking at an overall (average) premium increase of just 0.3% — instead of the 10.2% overall increase we were facing. 

To keep our benefits program sustainable, we’re investing more, partnering with UC Health and changing our strategy: 

UC’s costs: Up 10. 2% in a tight budget year 

UC spending: $3.0B on medical benefits, up $260M from 2025, or 9.5% 

UC Health: Holding down costs for UC employees, despite rising expenses

Strategy: New plan, sustainable plan designs and equitable premiums

What this means for you 

The 2026 benefits fact sheet has more information about what’s changing, but you need to know three things: UC has a new medical plan, premiums are changing and we’re staying true to our commitment to strong benefits for our employees: 

New medical plan: HealthSavings+, replacing CORE and UC Health Savings Plan, will be UC’s lowest premium medical plan and it will come with a tax-advantaged savings account. UC will contribute up to $750 for individuals and $1,500 for families.

Balanced premiums: In the past, UC has paid more of the total premium for Kaiser HMO. Starting next year, employees will pay the same percentage of total premium costs for Kaiser HMO as they do for UC Blue & Gold HMO. 

Comprehensive, sustainable coverage: By controlling what we can, we’re protecting the security and quality of our benefits program. 

Preparing for Open Enrollment 

If you choose Kaiser HMO, these changes may mean that your monthly premium will be higher next year, reflecting the true cost of your coverage. On the other hand, if you choose HealthSavings+ or UC Care, your monthly premiums may be lower. 

Represented employees should review their contracts and reach out to their union representatives with any questions about how these changes will apply to them. Premiums for represented employees will be implemented consistent with applicable collective bargaining agreements and the law. 

We know plan changes and premium increases affect you directly, and we weighed our decisions very carefully. If you’re considering a change in medical plans, we’ll have lots of resources during open enrollment to help you understand your options. 

If you’re one of those people who never pays attention to Open Enrollment, this is the year to change that. Open your mail and keep an eye on UCnet and UC’s employee Instagram account for updates, resources, and reminders. Your benefits team is ready to help you navigate these changes and find the best plan for you and your family. 

Sincerely, 

Cheryl Lloyd
Vice President Systemwide Human Resources