UC SHIP Premiums Will Increase $565 for UCSF Students


UCSF student premiums for 2013-2014 for medical, dental and vision insurance coverage will rise 20.4 percent, from $2,766 to $3,331.

In the four years prior to joining UC SHIP, UCSF premiums rose 49 percent.  In the three years since SHIP was implemented, UCSF premiums have increased just 1.1 percent.  This difference is due in part to spreading risk over a larger population and to cutting out insurance company profits, as well as because premiums were set too low. 

UCSF is responsible for only 2.4 percent of the estimated UC SHIP deficit to date, according to a memo from Joseph Castro, vice chancellor of Student Academic Affairs.

As a self-funded plan, the premiums paid by students are used to pay all claims costs.  There is no insurance underwriter that assumes liability or takes a profit. 

Due to errors made by the original actuaries, premiums for SHIP were set too low, and significantly too low at the campuses responsible for a higher proportion of the deficit.  This has resulted in the projected $57 million deficit in the plan.  UCOP is considering legal action against the original actuarial company.

The UC Office of the President (UCOP) has named Lori Taylor the new director of UC SHIP, and there are plans for improved reporting of data and development of a Pharmacy Care Manager system to control costs. Both are expected to be implemented by August 2013.

UCOP also plans to negotiate discounted reimbursement rates with our UC Medical Centers for UC SHIP participants.

These measures, in addition to the increases in premiums for all the participating UCs, will result in the stabilization of UC SHIP and mitigate the likelihood of future deficits, according to Castro.