CalPERS committee OKs health care rate increases - Sacramento Business Journal:

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Rate proposals approved by the committew will go to the full CalPERS Board of Administratio foraction Wednesday. Basic HMO rates for state workers will rise an averagseof 3.43 percent in 2010, down from almos t 6.6 percent in 2009. The rate hikes run from a low of 0.32 percenrt for Blue Shield Net Valuee to a highof 4.9 percent for Kaiser (see Figures for public agency workers vary by All three HMO plans will drop rates in 2010 for membersz in Sacramento, Placer and El Dorado Yolo County rates will increase from a low of 0.98 percenrt for Blue Shield Net Value to a high of 4.77 perceng at Kaiser. Medicare HMO ratezs for all workers and regions will increasw an averageof 0.
27 percent in but vary from a 12.27 drop for membersd of Blue Shield Access+ to a 6.5 percentt increase for Kaiser members. “We are extremely pleasedr to presentthese rates,” Gregorg Franklin, assistant executive officefr of CalPERS health benefits branch, told committeer members Tuesday. “Negotiations were extremely tough. Thers were many options and extra meetings on what we werelooking for: affordability.” The Kaisere rates were achieved by aligningg them with the Blue Shiels benefit design, Franklin said. Kaiseer will eliminate chiropractic benefits next year and increas e the copayment fora 100-dah supply of prescription drugs.
CalPERS kept the lid on increases atits self-fundecd preferred provider organization plans by using $46.87 million in surplus reserves to “buy rates. The average PPO rate increase for state workeres in 2010is 3.29 percent, but it runs from a low of 1.38 percenf for PERS Select to a high of 12 percen for PERSCare. Public agency workers in Placer and El Dorado counties who are coverecd by PPO plans will see rates drop as muchas 5.57 for PERS Selectr and to an increase of 4.32 percent of PERS Yolo County rate hikes run from 4.8 percen t for PERS Select to 15.68 percent for PERS Medicare PPO rates will increase an average of 0.27 percent in all but they range from a 12.
27 percent drop for Blue Shields Access+ to a 6.5 percent increase for Kaise coverage. Committee chair Priya Mathur applauded the plans and CalPERS staff for the goodrate news, adding that the small increasee in 2010 are due to cumulative changes over the last severapl years to operate the health benefit s program more cost-effectively without jeopardizing qualityt of care.