Penn announces changes to 2026-27 employee health care plan

Penn announced coverage changes to its 2026-27 health plans for the University’s faculty, staff, and postdoctoral workers.

The changes include new contribution amounts, a deductible increase, and additional voluntary benefit options. This year’s Open Enrollment period — where Penn employees can make changes to their life insurance, health plans, and flexible spending accounts — will span from April 20 to May 8. 

In an April 15 press release, Penn’s Division of Human Resources wrote that a working spouse contribution of $100 monthly would be effective on July 1. 

The release specifies that the benefit “may apply if a spouse has access to group medical coverage through an outside employer but enrolls in one of Penn’s medical plans,” and that it will be “deducted on a pre-tax basis.”

During Open Enrollment, employees covering a spouse on a Penn medical plan must choose to either select or waive the working spouse contribution. If no option is selected, the spouse contribution will be applied.

Earlier this month, union organizers at Penn Libraries and the Penn Museum voiced concerns over the changes to the University’s health care provisions. 

Sarah Shaw, a lead negotiator with District Council 47 of the American Federation of State, County, and Municipal Employees, described the introduction of the “working partner premium” as a “big red flag.”

According to Shaw, workers at the Penn Museum have filed a grievance related to these health benefit changes. She argued that Penn was “instituting these changes without providing the union with the opportunity to bargain over them.” 

According to the release, deductibles for the health plan will increase by $125, which “helps manage rising health care costs while continuing to offer comprehensive coverage for our faculty, staff, and postdocs.”

The new plan also offers additional voluntary benefits covering “legal services, purchase financing, and pet wellness” available for Penn employees.

Penn also announced specific contribution changes for the Health Care Flexible Spending Account, Health Savings Account, and Dependent Care Flexible Spending Account.

While the maximum annual contribution for the HCFSA will remain at $3,400, the amount available to roll over to the following year will increase from $660 to $680. For the Health Savings Account, users can now contribute up to $3,400 for individual coverage and up to $6,750 for family coverage. 

The maximum contribution will rise from $5,000 to $7,500 for DCFSA users, while the maximum for highly compensated employees is set to remain at $2,500.

The release clarifies that the Internal Revenue Service follows a policy of “use it or lose it,” meaning that if a DCFSA plan’s full balance has not been used, the remainder of the money is forfeited.

Users of the DCFSA or HCFSA will also need to “re-elect” their accounts to continue coverage in the new school year. If not re-elected, users will be defaulted to a $0 annual goal amount and will not be able to enroll in the plan until the next Open Enrollment period, with the exception of a “qualifying life event.”

For 2026-27, medical plan and Penn Dental Plan rates will increase, while MetLife Dental Plan and vision plan rates are set to remain the same. 

---