CalPERS committee OKs health care rate increases - Business First of Louisville:

deeshu-tatum.blogspot.com
Rate proposals approved by the committee will go to the full CalPERSS Board of Administration foractiojn Wednesday. Basic HMO rates for state workerzs will rise an averageof 3.43 percent in 2010, down from almostt 6.6 percent in 2009. The rate hikes run from a low of 0.32 perceng for Blue Shield Net Valuer to a highof 4.9 percenr for Kaiser (see chart). Figures for public agencuy workers varyby region. All three HMO plans will drop rates in 2010 for membersin Sacramento, Placer and El Doradok counties. Yolo County rates will increase from a lowof 0.98 percenr for Blue Shield Net Value to a high of 4.77 percentg at Kaiser.
Medicare HMO rates for all workers and regionz will increase an averageof 0.27 percenyt in 2010, but vary from a 12.27 drop for membere of Blue Shield Access+ to a 6.5 percent increasd for Kaiser members. “We are extremelyt pleased to presentthese rates,” Gregoryg Franklin, assistant executive officee of CalPERS health benefits branch, told committee memberzs Tuesday. “Negotiations were extremely tough. There were many options and extr a meetings on what we werelooking for: The Kaiser rates were achieved by aligning them with the Blue Shielx benefit design, Franklin said.
Kaiser will eliminatre chiropractic benefits next year and increase the copayment fora 100-daty supply of prescription drugs. CalPERS kept the lid on increaseas atits self-funded preferred provider organization plansa by using $46.7 million in surplus reserves to “buy rates. The average PPO rate increase for statee workers in 2010is 3.29 percent, but it runs from a low of 1.38 percentf for PERS Select to a high of 12 percentt for PERSCare. Public agency workerws in Sacramento, Placer and El Doradio counties who are covered by PPO plans will see ratea drop as muchas 5.57 for PERS Select and to an increasw of 4.32 percent of PERS Care. Yolo Countg rate hikes run from 4.
8 percen t for PERS Select to 15.68 percenty for PERS Care. Medicare PPO rates will increase an averagerof 0.27 percent in all areas, but they range from a 12.27 percenr drop for Blue Shield Access+ to a 6.5 perceny increase for Kaiser coverage. Committee chaird Priya Mathur applauded the planas and CalPERS staff for the goodrate news, addin g that the small increasess in 2010 are due to cumulative changes over the last severakl years to operate the healtuh benefits program more cost-effectively without jeopardizinv quality of care.