1998-1999 Support Book 2 Documentation
Mandatory Costs: Benefits Maintenance
The 1998/99 budget plan provides $8.6 million to maintain current levels of employee health and dental coverage.
Health costs are projected to increase approximately 9 percent beginning January 1998. One-time funding available from 1996/97 systemwide carryforward will be used to fund campuses for the increased cost in 1997/98. Approximately $8 million is provided for permanent funding of the benefits increase in 1998/99. CSU employer paid rates for health benefits are tied to Government Code health rates. These rates are increasing January 1998 as a result of health plan mergers and various health plan premium rate increases. The CSU cost increase is based on the difference between the old rates and the new rates multiplied by the number of health benefit enrollees.
Dental costs are projected to increase 3 percent beginning January 1998. One-time funding from systemwide carryforward will be used to fund 1997/98 CSU cost increases. Approximately $560,000 is provided for permanent funding in fiscal year 1998/99. The increase is based on Delta Dental plan rate increases. Delta Dental is one of two carriers the CSU contracts with for dental services. The fourth and fifth year of the Delta Dental contract stipulates that dental rates will be based on experience rather than a fixed rate. The CSU cost increase for fiscal year 1998/99 is based on the difference between the old rates and the estimated increase multiplied by the number of dental benefit enrollees.