9/9/2026
Dear Faculty and Staff Colleagues,
The Medical Plan Advisory and Review Committee (MPARC) has completed its work and has unanimously recommended a new medical plan approach for 2027. President Crawford has accepted the recommendation, and we’re writing to provide you with initial information about the plan lineup.
For 2027, Puget Sound will offer three medical plan options instead of the single plan currently available. The lineup will include a qualified high-deductible health plan paired with a Health Savings Account and two PPO plans paired with Health Reimbursement Arrangements. Premera will remain the university’s medical plan administrator, and both the high-deductible plan and one of the PPO plans will use the same Prime network available under our current plan. Together, the plans are designed to provide faculty and staff with more choice in monthly cost, provider access, and approach to risk protection when care is needed. We are sharing this information now so faculty and staff have ample time to understand the new options before Open Enrollment begins in November.
Healthcare costs are rising significantly nationwide. Mercer, an independent firm that advises employers on health benefits, projects that employer health plan costs will increase by an average of 8.2% in 2027, even after employers make changes to manage those costs. Without such changes, the projected national increase is 11%, expected to be the highest annual increase since 2003. Puget Sound’s benefits consultant estimated that continuing our current plan without changes would result in an even larger increase of approximately 14% based on our expected claims experience. The university cannot absorb that full increase while maintaining a strong and sustainable medical benefit. The approved approach is projected to reduce the increase in total plan costs to approximately 12.6%. The university will absorb more than three-quarters of that increase and is expected to maintain its substantial investment in employee healthcare, paying nearly 85% of total medical plan costs, consistent with its overall share in 2026.
We recognize that our faculty and staff may have hoped the university could restore a $0 monthly premium for employee-only coverage. The approved plan lineup does not return to that model. This decision reflects cost pressures affecting not only Puget Sound but institutions across higher education: as of 2024, only 5.3% reported continuing to fully cover the premium for employee-only coverage. We know affordability matters deeply, and the Committee considered not only monthly premiums but also the cost of receiving care across different family and medical circumstances. The new high-deductible plan will have lower employee cost shares than the current plan at every coverage level.
We invite you to attend a campus session on Tuesday, Sept. 15, from 12:30 –1:30 p.m. in the Tahoma Room, Thomas Hall, where we will explain the new plans in greater detail, the rationale for the approved approach, and what faculty and staff can expect between now and Open Enrollment.
No single plan will be right for everyone. Each will offer a different combination of monthly cost, provider access, and financial protection when care is needed. The open session will provide an initial overview of these differences, followed by additional information and opportunities for faculty and staff to evaluate which plan may work best for them and their families. After the session on September 15, we will:
- Share MPARC’s comprehensive report;
- Provide a side-by-side guide showing monthly premiums, key plan features, and examples of total costs;
- Deliver an updated FAQ with answers to anticipated questions;
- Offer live and recorded learning sessions, including sessions focused on understanding the high-deductible plan and Health Savings Account;
- Provide individual assistance from Human Resources, as well as department or divisional presentations upon request; and
- Make more information available on campus at our comprehensive Benefits Fair on Monday, Nov. 2.
You will have time to review the information, ask questions, and think about which plan may work best for you and your family before the annual Open Enrollment begins Nov. 2.
We are grateful to our faculty and staff colleagues listed below who served on MPARC for the care, honesty, significant time, and commitment they devoted to this work over the past several months. Committee members reviewed the data, asked difficult questions, considered the faculty and staff input provided through the MPARC survey, and worked through challenging tradeoffs. Throughout the process, the committee’s goal was to preserve access to a strong medical benefit, expand employee choice, and address affordability within the university’s financial capacity.
We hope you will join us next Tuesday, Sept. 15. In the meantime, we have provided some additional information on the Questions and Answers page. Any questions may be directed to Human Resources at benefits@pugetsound.edu.
Best,
Kim Kvaal
Executive Vice President and Chief Financial Officer
MPARC Chair
Nancy Nieraeth
Chief People Officer
MPARC Project Lead
MPARC Members:
- Danielle Bus, R.N., Wellness Education & Prevention Specialist, Counseling, Health, & Wellness Services (CHWS)
- Mare Hirsch, Assistant Professor, Art & Art History
- Kim Iverson, Benefits Manager, Human Resources, Staff Support
- Megan King, Executive Assistant to Executive VP & CFO, Staff Support
- Ben Lewin, Professor, Chair, Sociology and Anthropology, Director of Public Health
- Elizabeth Orr, Development Officer, Capital and Planned Giving
- Sabrina Shepherd, Senior Conference and Event Sales Manager, Dining & Event Services (DES)
- Emily Tollefson, Associate Professor, Chemistry