UC Davis Phases Out Blue and Gold Subsidy

The university's supplemental subsidy capping out-of-pocket costs on its Blue and Gold insurance plan is ending after an extension through 2026.

Updated on Nov. 4, 2026 in Healthcare

UC Davis Phases Out Blue and Gold Subsidy

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UC Davis is phasing out a supplemental subsidy that capped out-of-pocket maximums on its Blue and Gold insurance plan at $1,000 for individuals and $3,000 for families. Out-of-pocket maximums will rise to $3,000 for individuals and $6,000 for families.

Why it matters

The change shifts higher healthcare costs directly onto employees in Davis at a time when premiums have climbed sharply across the country and in California. The subsidy was the only one of its kind offered within the University of California system last year.

Out-of-pocket maximums on the Blue and Gold plan are set to triple for individuals, from $1,000 to $3,000, and double for families, from $3,000 to $6,000. Union premiums rose 5.2% this year, while premiums nationwide have risen about 9%, though the effective timing of the change remains unspecified.

The players

UC Davis

The University of California campus in Davis is a public research university whose employee health plans set the terms of the Blue and Gold coverage.

CalPERS

The California Public Employees' Retirement System is the state's large public pension and benefits fund, whose premium increases of roughly 5% serve as a benchmark for the region.

The details

The supplemental subsidy was established as a five-year program and was extended for a sixth year through 2026. UC Davis employees fall into more than 300 different rate possibilities under a salary-based contribution structure, so the impact will vary by pay level.

2022 to 2025: Healthcare premium costs rose about 25%.
2026: Final year of the extended UC Davis subsidy program.

Market Landscape

Premiums in the UC Davis plan are rising faster than the roughly 5% increase CalPERS has absorbed in recent years, placing the campus among the employers passing steeper costs to workers. The national premium increase of about 9% sets a wider context in which the university's subsidy phase-out stands out as a competitive shift in benefits offered to California public employees.

Employees on the Blue and Gold plan will face higher out-of-pocket limits, with individuals able to pay up to $3,000 and families up to $6,000 before coverage fully pays. Workers should review their salary-based contribution tier to estimate how the change affects their annual costs.

The takeaway

Employees should compare their expected out-of-pocket costs under the new limits against their current plan before the phase-out takes effect. Planning for higher maximums now can prevent surprises when coverage is needed.