The University is updating the medical plan, pharmacy vendor, and the Wellbeing Program incentive. These updates take effect January 1, 2027.
Why Benefits Are Changing
Like many higher education institutions, the University is facing a challenging financial landscape, plus rising medical and pharmacy costs. At the same time, medical and drug costs are projected to increase with double-digit inflation nationally for 2027 and beyond.
Over time, the University has absorbed an increasing share of employee medical costs to help offset the impact on employees. The University has postponed the changes for as long as possible, but the financial realities mean it can no longer keep paying the same portion of costs.
These adjustments are part of a long-term effort to:
- Keep our benefits competitive while ensuring the sustainability of the medical plan
- Maintain a strong range of plan options
- Support employees and their families with quality coverage
This marks the first major update of the health plans since 2014. After these updates, the University's benefits will remain competitive with those of other large employers and higher education institutions.
Changes Effective Jan. 1, 2027
Medical Plan Updates
The University will make adjustments to medical plan cost sharing beginning January 1, 2027. While you have the same plan options available, the amount you pay when you use care may increase. Costs vary depending on the plan you choose and how you use your benefits.
More detailed plan comparison charts and rates will be available leading into open enrollment.
Category | Description |
|---|---|
Deductibles |
|
Coinsurance | Moving to 15% coinsurance after the deductible is met (up from 0% on most plans). |
Out-of-Pocket (OOP) Maximums | Out-of-Pocket (OOP) Maximums: Medical and pharmacy OOP maximums will be combined for a total maximum of $4,000 individual / $8,000 family (previously $3,000/$6,000 for HSA and $2,500/$4,000 for other plans). The previous Pharmacy OOP maximum was $750 per person / $1,500 per family for other non-HSA plans. |
Prescription Drug Coverage
The University will transition to a new pharmacy benefits manager on January 1, 2027.
Most prescriptions will continue to be covered, and the pharmacy network will remain broad. Employees will receive additional information if their medications are impacted.
Support will be available to help ensure a smooth transition, and most employees will not need to take action. More information will be available as the implementation progresses.
Looking Ahead: 2028 Wellbeing Discount
Beginning January 1, 2028, the Wellbeing Program discount will be reduced.
The discount earned during the September 2026–August 2027 program year will be applied to 2028 medical rates at these new levels:
- $250 (employee or employee + children)
- $375 (employee + spouse, with or without children)
Employees will continue to have access to the Wellbeing Program. This includes the opportunity to earn a discount, but at a reduced amount beginning in 2028.
What You Need to Do
Like previous years, no direct action is required if you plan to keep your current benefit selections. The only exception to this is a flexible spending account (FSA). Due to IRS regulations, you must elect an FSA every year. If you’d like to make changes to your benefit selections for 2027, open enrollment is your opportunity to do so.
Before Open Enrollment
- Review upcoming plan changes
- Estimate your healthcare expenses for the next year
- Attend an information session (more information below)
During Open Enrollment
- Compare medical plan options
- Review dependent coverage needs
- Consider contributions to health savings accounts (HSA) or flexible spending accounts (FSA)
- Make your benefit elections that work best for your situation by the deadline
After Open Enrollment
- Watch for confirmation of your elections
- Review any updates to ID cards or vendor information if applicable
- Keep a copy of your confirmation for reference
Information Sessions
Information sessions will be offered to help you understand the changes and how they may affect you. Register for and attend a session that works with your schedule.
Sessions will include:
- Overview of benefits changes
- Pharmacy transition details
- Overview of available resources
Share Your Thoughts
We know not everyone will be able to attend an information session. If you have questions or concerns, you can share them using our online form. While we may not be able to respond to every submission individually, we'll use what we hear to identify common questions and shape future communications, FAQs, and resources.
Additional Benefit Resources
You can access tools and support to help you make informed decisions:
Frequently Asked Questions
Why are benefits changing?
Like other employers, the University is seeing ongoing increases in medical and pharmacy costs in addition to broader financial pressures. These changes are intended to help maintain a sustainable benefits program while continuing to offer comprehensive coverage.
When do the changes take effect?
Most changes take effect January 1, 2027.
The updated Wellbeing Program incentive for medical rate reduction takes effect January 1, 2028. The 2028 rate reduction is based on points earned in the 2026-2027 Wellbeing Program year.
Do I need to take action?
Most employees will not need to take action during open enrollment.
If you’d like the same benefit selections for 2027, no action is needed. If you’d like to change your benefit selections or you would like a flexible spending account in 2027, then you need to take action during open enrollment this fall.
Even if you are satisfied with your current coverage, it is encouraged to review your options. Now is a good time to learn more about if an FSA is right for you.
Will my medical rates increase?
We anticipate rates will increase for 2027 in response to increasing healthcare costs. They will be shared ahead of open enrollment.
Are all medical plans changing?
Yes. Cost-sharing changes apply across all medical plan options. The impact of these changes will vary by plan.
Is preventive care still covered?
Yes. Preventive care continues to be covered according to plan provisions.
Will my prescriptions still be covered?
Most prescriptions will continue to be covered. Employees will receive additional information if their medications are impacted.
Do I need to change pharmacies or doctors?
You will have access to the same networks. You can continue seeing your current providers and filling prescriptions at participating pharmacies. As long as your doctor or pharmacy doesn’t opt out of the network, you will continue to be able to see your preferred physicians.
Why is the Wellbeing Program incentive changing?
It is part of the overall effort to balance benefit costs while continuing to support employee health and engagement.
Where can I get help choosing a plan?
- Use the plan comparison tools available during open enrollment
- Attend an information session
- Use the HSA savings calculator available from HSA Bank
What support is available if I’m worried about costs?
Employees have access to several resources to help manage costs and stress, including:
Stay Informed
This page will be updated with additional information, tools, and resources as they become available.
For the latest updates, check back regularly or attend an information session.