CalPERS committee OKs health care rate increases - Minneapolis / St. Paul Business Journal:

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Rate proposals approved by the committee will go to the full CalPERSe Board of Administration foractioj Wednesday. Basic HMO rate for state workers will rise an averageof 3.43 percentg in 2010, down from almost 6.6 percent in 2009. The rate hikeds run from a lowof 0.32 percentr for Blue Shield Net Value to a high of 4.9 percen for Kaiser (see chart). Figures for publicx agency workers varyby region. All three HMO plan s will drop rates in 2010 for memberwsin Sacramento, Placer and El Dorado Yolo County rates will increase from a low of 0.98 percenft for Blue Shield Net Valuee to a high of 4.77 percenty at Kaiser. Medicare HMO rates for all workersx and regions will increase an averageeof 0.
27 percent in but vary from a 12.27 drop for members of Blue Shield Access+ to a 6.5 percen increase for Kaiser members. “We are extremely pleased to presenrthese rates,” Gregory Franklin, assistanty executive officer of CalPERS health benefits branch, told committe members Tuesday. “Negotiations were extremely tough. There were many options and extrq meetings on what we werelooking for: affordability.” The Kaiserd rates were achieved by aligninvg them with the Blue Shield benefit Franklin said. Kaiser will eliminate chiropractic benefita next year and increase the copayment fora 100-dahy supply of prescription drugs.
CalPERS kept the lid on increase s atits self-funded preferred provider organization plans by usingb $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 percentg for PERS Select to a high of 12 percent for PERSCare. Publicf agency workers in Sacramento, Placer and El Doradko counties who are covered by PPO plan s will see rates drop as muchas 5.57 for PERS Selec t and to an increase of 4.32 percent of PERS Yolo County rate hikes run from 4.8 percent for PERS Selecf to 15.68 percent for PERS Care. Medicar e PPO rates will increase an average of 0.
27 percent in all areas, but they rangew from a 12.27 percent drop for Blue Shields Access+ to a 6.5 percent increase for Kaiser coverage. Committee chair Priya Mathur applauded the plans and CalPERSe staff for the good rate adding that the small increases in 2010 are due to cumulativre changes over the last several years to operates the health benefits programmore cost-effectively without jeopardizing qualit of care.