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

buluhofuce.wordpress.com
Rate proposals approved by the committee will go to the full CalPERSS Board of Administration for action Basic HMO rates for state workers will rise an averag eof 3.43 percent in down from almost 6.6 percent in 2009. The rate hikesz run from a lowof 0.32 percengt for Blue Shield Net Value to a high of 4.9 percent for Kaiser (see Figures for public agencyt workers vary by region. All three HMO plans will drop rates in 2010 for members in Placer and ElDorado counties. Yolo County rates will increasw from a lowof 0.98 percent for Blue Shiels Net Value to a high of 4.77 percent at Medicare HMO rates for all workers and regions will increase an average of 0.27 percent in but vary from a 12.
27 drop for members of Blue Shield Access+ to a 6.5 percentg increase for Kaiser members. “We are extremely pleased to presenfthese rates,” Gregory Franklin, assistant executive officer of CalPERe health benefits branch, told committee members Tuesday. “Negotiationd were extremely tough. There were many optionsx and extra meetings on what we werelooking for: The Kaiser rates were achieved by aligninhg them with the Blue Shield benefitg design, Franklin said. Kaiser will eliminate chiropracticc benefits next year and increases the copayment fora 100-day supply of prescription drugs.
CalPERd kept the lid on increases atits self-funded preferrecd provider organization plans by using $46.7 million in surplus reserves to “buy rates. The average PPO rate increase for state workeras in 2010is 3.29 percent, but it runs from a low of 1.38 percenr for PERS Select to a high of 12 percenf for PERSCare. Public agency workers in Placer and El Dorado counties who are covered by PPO plansw will see rates drop as muchas 5.57 for PERS Selecy and to an increase of 4.32 percent of PERS Care. Yolo Countyh rate hikes run from 4.8 percent for PERS Selecy to 15.68 percent for PERS Care. Medicare PPO ratesa will increase an averageof 0.27 percent in all areas, but they rangs from a 12.
27 percent drop for Blue Shields Access+ to a 6.5 perceny increase for Kaiser coverage. Committee chair Priya Mathur applauded the planxs and CalPERS staff for the good rate adding that the small increases in 2010 are due to cumulativr changes over the last several years to operate the health benefits programmore cost-effectivelyu without jeopardizing quality of care.