The University of Minnesota told employees on July 22 that it's reworking its UPlan medical benefits, raising deductibles, out-of-pocket maximums and adding new co-insurance payments starting in 2027. The announcement came by staff email and landed badly with many faculty and staff, who said the changes will push more health costs onto workers.
According to the university's own breakdown of the changes, HSA plan deductibles will rise to $2,000 for individual coverage and $4,000 for family coverage, up from $1,700 and $3,400. Other medical plans will see deductibles jump from $100/$200 to $500/$1,000. Most plans are also moving to a 15% co-insurance rate after the deductible is met — a cost that didn't exist on most plans before. The combined medical and pharmacy out-of-pocket maximum climbs to $4,000 for individuals and $8,000 for families, up from $3,000 and $6,000 on HSA plans.
Non-HSA plans are also standardizing office-visit copays at $25 for primary care and $35 for specialists. On top of the medical changes, the university is switching to a new pharmacy benefits manager on January 1, 2027. A separate cut to the university's Wellbeing Program discount — dropping to $250 for employee-only or employee-plus-children coverage and $375 for employee-plus-spouse coverage — is set to take effect a year later, on January 1, 2028.
It says this is the first major update to its health plans since 2014. The Office of Human Resources is running virtual information sessions to walk employees through what's changing.
None of that has softened the reaction on campus. Employees who spoke out after the July 22 email described a staunch, negative response to a plan that shifts more of the cost of care onto workers just as premiums and deductibles are already climbing nationally. The changes take effect January 1, 2027.