CalArts and CU-UAW met on Monday, Feb. 2, 2026, for a special session to discuss healthcare benefits for the April 2026 to March 2027 cycle. (This meeting was unrelated to bargaining for benefits for the collective bargaining agreements for the three separate CU-UAW units). CalArts presented CU-UAW with materials on the proposed changes to benefits for this next benefits plan year, going into detail about the changes and answering any questions CU-UAW bargaining committee members had. As open enrollment will be in early March, CalArts stressed that a decision on health plans that will be offered to employees must be conveyed to our insurance broker by this Friday (Feb. 6) to allow for appropriate campus-wide communication, education, and 1-on-1 sessions so employees can make an informed decision during the open enrollment period in the first two weeks of March.
CalArts explained that healthcare costs in California have increased by about 10% (9-10% nationally) in the past year alone. CalArts’ total healthcare costs for its current plans increased by an additional $1.4 million, without consideration of the about $7-$8 million existing structural deficit for CalArts. CalArts shared with CU-UAW its proposal to keep healthcare as affordable as possible to employees while also taking into account institutional financial responsibility.
CalArts’ proposal included a tiered structure (Tier 1 – employees making less than $60,000; Tier 2 – employees making between $60,001 to $100,000; Tier 3 – employees making between $100,001 to $175,000; and Tier 4 – employees making over $175,000), whereby employees in the first two tiers contribute less than employees in tiers 3 and 4, with tier 4 making the greatest employee contributions to healthcare. This approach promotes equity by ensuring higher-income earners bear a larger share of the benefits costs, which significantly eases the burden on lower-end earners and helps keep costs contained as much as possible for employees in tiers 1 and 2.
There are plan design changes that will be fully communicated to employees once the proposals are finalized. In all of these determinations, CalArts benchmarked itself against comparator institutions. (Meaning, the changes to CalArts plans generally match—or are better than—what exists in the marketplace.)
Aside from Imagine360 and CIGNA, only Aetna and Kaiser offered bids this year for CalArts healthcare coverage. Both were even more expensive, adding another $1 million in healthcare costs alone. Anthem, CalArts’ previous plan provider, did not even bid. The process of securing these bids and cost projections was thorough and time-intensive, as many carriers experienced delays due to widespread cost increases and high demand from organizations shopping for plans this year.
CalArts has also engaged with CWA to schedule a similar special session to review changes to healthcare benefits for the 2026-2027 benefit year.