UCD Directives

UC DAVIS:  VICE CHANCELLOR-ADMINISTRATION

June 30, 1999

DEANS, DIRECTORS, DEPARTMENT CHAIRS
AND CAMPUS/UCDHS ADMINISTRATIVE OFFICERS:

RE: Year 2000 Medical Plan Bid Process

As the result of an extensive 18-month competitive bid process, the University
of California has selected the carriers to offer medical plans to UC
employees, retirees, and their eligible dependents effective January 1, 2000.

Prudential will be retained for UC Care, Core and High Option plans. 
Prudential will also replace Merck-Medco as the prescription drug carrier for
UC Care.  Health Net, PacifiCare, Kaiser and Western Health Advantage will be
retained to provide HMO plan choices.

United Behavioral Health will replace PacifiCare Behavioral Health, Inc., as
the insurer for the behavioral health benefits under UC Care.  

Throughout 1998 and early 1999, a team of UC administrative staff under the
leadership of Michele French, Director of Health and Welfare Planning &
Analysis, along with representatives from Senior Vice President Wayne
Kennedy's appointed advisory group, the Faculty Welfare Committee, plan members,
and representatives from exclusive bargaining units, consulted with thousands
of UC employees and retirees statewide regarding their satisfaction with the
current medical plans.

Bidders were required to respond to an extensive set of Requests for Proposals
(RFP's).  After detailed analysis of the RFP's by staff and consultants, there
was a round of oral interviews and site visits.  During these visits to
company operations, detailed information was gathered on each bidder's claims and
member service capability, systems support, medical and network management, as
well as their quality initiatives.  For the behavioral health benefits, a
detailed review of bidders' access models and ability to work with campus and
laboratory Employee Assistance Programs was performed.

Even though there are relatively few changes in carriers, the University is
confident that the medical plans chosen are the most qualified to deliver
quality health care at affordable rates for UC's medical plan members.

During the coming months, the University will negotiate specific performance
standards with the plan carriers and complete the contracting process.  More
details about the year 2000 coverage will be announced in the coming months to
give members information they need for selecting their medical plans during
Open Enrollment.

Questions regarding this process can be addressed to Elizabeth Hansen, Campus
Benefits Manager, at (530) 752-1765 and Mary Anne Keenan, UCDHS Benefits
Manager, at (916) 734-8098.

Dennis Shimek
Associate Vice Chancellor-
Human Resources & Risk Management

99-079

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