Healthcare Cost Relief For 2026 – Unit 3 Members
- UPE
- 2 days ago
- 2 min read
Merced County has announced that health insurance premiums will rise in general by approximately 13.9% in 2026. This increase is due to higher overall healthcare costs, which were larger than the County expected.
To help reduce the impact on employees, the County has offered a one-time agreement (in a side letter) that will use over $4.2 million in one-time funds to soften the blow. By UPE Bargaining Unit 3 signing this agreement, the County will cover most of the premium increase by about approximately 8.9%, and most Unit 3 employees will only take on approximately 5% of the added cost. Some members, depending on their plan—like those on the Anthem 1500 plan with individual coverage—may not see any increase at all. However, certain coverage tiers (depending on the type of Anthem plan and coverage) could still see an increase of more than 5%. Even so, without the side letter in place, most employees would not receive the mitigated rates and would be responsible for paying the full, non-mitigated premium amounts.
It’s important to know that this agreement is for up to 2026 only. Our negotiated 3% healthcare cap still applies for 2027, but the one-time relief in this side letter does not carry over.
The County has stated this is its final and best offer for all bargaining units. No other adjustments or improvements will be made—regardless of what other units decide to do.
After reviewing the data and impact, UPE will be signing and submitting the side letter to protect members from the full burden of rising healthcare costs. This agreement brings meaningful savings, and we believe it is in the best interest of Unit 3 employees.
Below is a side-by-side comparison of what Unit 3 employees would pay with the side letter in place (mitigated) versus without it (non-mitigated):
Anthem 500 Plan (Low Cost Plan)
Employee Only: $91.71 (mitigated) vs. $162.02 (non-mitigated)
Employee + Spouse: $513.66 (mitigated) vs. $766.46 (non-mitigated)
Employee + Child(ren): $272.56 (mitigated) vs. $373.26 (non-mitigated)
Employee + Family: $677.86 (mitigated) vs. $840.97 (non-mitigated)
Anthem 1500 Plan
Employee Only: $0.00 (mitigated) vs. $53.90 (non-mitigated)
Employee + Spouse: $294.82 (mitigated) vs. $401.51 (non-mitigated)
Employee + Child(ren): $151.40 (mitigated) vs. $231.87 (non-mitigated)
Employee + Family: $476.90 (mitigated) vs. $616.40 (non-mitigated)
Anthem HDHP (High Deductible Plan) with HSA + Dental and Vision
Employee Only: $0.00 (mitigated) vs. $53.90 (non-mitigated)
Employee + Spouse: $297.73 (mitigated) vs. $404.74 (non-mitigated)
Employee + Child(ren): $154.31 (mitigated) vs. $235.10 (non-mitigated)
Employee + Family: $480.29 (mitigated) vs. $620.18 (non-mitigated)
Anthem HDHP (HSA + Dental + Vision) – Employee Only Plan
Employee Only: $0.00 (mitigated) vs. $0.00 (non-mitigated)
