UC: Plan options and costs changing for 2026 benefits

The following letter was sent out from UC’s VP of HR to help inform UC employees about changes coming for this year’s Open Enrollment.

Dear Colleagues,

Open Enrollment starts on Oct. 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: 

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:

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

Note: UC Davis is increasing its contribution to medical plan rates to help keep our employees’ contributions lower. This includes continuing to subsidize the employee contribution for the UC Blue & Gold plan to match Kaiser Permanente, making our own health care system more affordable for our employees. UC Davis is the only campus that subsidizes the UC Blue & Gold plan for employees.

Special rates for UC Davis and ANR employees are not published on the UCnet website, though they are inserted in the UC Open Enrollment brochure mailed to you.