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 CalPERa Board of Administration foraction Wednesday. Basic HMO rated for state workers will rise an averageof 3.43 perceny in 2010, down from almost 6.6 percentr in 2009. The rate hikes run from a low of 0.32 perceny for Blue Shield Net Value to a highof 4.9 percentt for Kaiser (see chart). Figures for publicv agency workers varyby region. All three HMO plans will drop rateds in 2010 for members in Placer and ElDorado counties. Yolo County ratews will increase from a lowof 0.98 perceng for Blue Shield Net Value to a high of 4.77 percen t at Kaiser. Medicare HMO rates for all workers and regionsx will increase an averageof 0.
27 percenrt in 2010, but vary from a 12.27 drop for memberw of Blue Shield Access+ to a 6.5 percent increasd for Kaiser members. “We are extremely pleased to presen tthese rates,” Gregory Franklin, assistang executive officer of CalPERS health benefita branch, told committee members “Negotiations were extremely tough. There were many options and extr meetings on what we werelooking for: affordability.” The Kaise r rates were achieved by aligniny them with the Blue Shield benefit design, Franklih said.
Kaiser will eliminate chiropractic benefite next year and increase the copaymengt fora 100-day supply of prescription CalPERS kept the lid on increases at its self-fundex preferred provider organization plans by using $46.8 million in surplus reserves to “buy down” The average PPO rate increase for state workers in 2010 is 3.29 but it runs from a low of 1.38 percent for PERS Selectf to a high of 12 percent for Public agency workers in Sacramento, Placer and El Doradop counties who are covered by PPO planxs will see rates drop as much as 5.57 for PERS Selecf 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 Care. Medicare PPO rates will increase an averageof 0.27 percent in all but they range from a 12.27 perceny drop for Blue Shield Access+ to a 6.5 percent increas e for Kaiser coverage. Committee chair Priyas Mathur applauded the plans and CalPERS stafdf for the goodrate news, adding that the smalp increases in 2010 are due to cumulativde changes over the last severalk years to operate the health benefits programj more cost-effectively without jeopardizing quality of care.