UC SHIP remains an affordable, high-quality health plan option for students.

The University of California is proud that its Student Health Insurance Plan (UC SHIP) has provided affordable, high-quality health benefits to support students’ academic advancement and has done so for the past decade.

UC SHIP premium rates will increase for the 2024-2025 academic year, and rates will depend on your location and plan type. Even after the change, UC SHIP premiums remain significantly more affordable when compared to plans with similar benefits available in the state’s Covered California marketplace for individuals.

UC expects to cover the UC SHIP premium increase for a portion of our students with the highest financial need. Each student’s situation is unique, and financial aid officers can help them understand the impact.

UC SHIP continues to offer robust benefits while working to contain current and future premium increases

Since its inception, UC SHIP has been largely designed and governed by students to ensure it meets students’ needs. It continues to be overseen by students, who serve as voting members of the UC SHIP Executive Oversight Board.

To hold down premium increases as much as possible while continuing to meet the needs of students without reducing benefits significantly, the EOB explored options and took the following actions to address key drivers of increased plan costs:

• Discontinued coverage for GLP-1 and all weight loss medications. GLP-1 medications for diabetes are still covered. This decision on weight loss drugs is consistent with the practices of most national health plans, given that these relatively new medications need further study to confirm their effectiveness.
• Discontinued the Lyra supplemental mental health care pilot program at the end of the 2023-24 plan year.

  Plan members will continue to have access to mental health services through professionals in the campus Counseling and Psychological Services (CAPS) centers and others in the Anthem Blue Cross network and LiveHealth Online.

As the UC community confronts the difficult reality of the need for these premium increases, efforts are being made to educate students about high-quality primary care options and alternatives to using hospital emergency rooms.

Additionally, three key plan design elements are being standardized across campuses to ensure that UC SHIP remains viable for the long-term for future generations of students. The changes are in line with accepted health plan practices and set amounts that are at or below market standards. Across all campuses, the new levels will be:

• Emergency room copay will be no less than $150 per visit.
• Out-of-pocket in-network (SHS, UCMC and Anthem contracted providers) maximums will be $4,500 for individuals and $9,000 for families, with out-of-network out-of-pocket maximums of $9,000 for individuals and $18,000 for families.
• Specialty medication coinsurance will be no less than 10 percent up to $250.

Why did premiums need to increase?

The higher premiums for the 2024-2025 academic year are driven by a significant increase in the use of higher-cost services and medication during the past two years. The largest areas of increased claims during the past two years have been in:

• Emergency room usage: 61 percent higher
• Outpatient mental health services: 78 percent higher
• Specialty medications: 100 percent higher

Despite these higher expenses for the plan in recent years, UC SHIP has kept premium increases to an average of five percent in the past several years, which is lower than the rate of inflation. UC SHIP has covered the increases in claims during the past few academic years by using a majority of its previous reserve funds to maintain the plan’s financial stability.

Why did UC SHIP change emergency room copays, out of pocket maximums and coinsurance amounts for specialty medications?

Three key plan design elements are being standardized across campuses to ensure that UC SHIP remains viable for the long-term for future generations of students. The amounts are set at or below market standards.

These are necessary changes in line with accepted practices that help make sure health plans such as UC SHIP are able to attract participants and spread risks across large numbers of members, as the good health of many helps offset the health care costs of the most vulnerable in our communities.

Learn more about paying for coverage.