CalPERS Board Gives Final Approval to HMO Premium Hikes for 2009
On Thursday, the CalPERS Board of Administration approved premium increases for its HMO contracts with Kaiser Permanente and Blue Shield of California of about 6.6% on average, the Sacramento Business Journal reports.
The increases range from 3.75% for members of Blue Shield's Net Value plan to 8.2% for Kaiser members (Robertson, Sacramento Business Journal, 6/19).
Last month, CalPERS' board approved a slight premium decrease for 2009 for its self-funded PPO programs.
Together, the average HMO and PPO premium changes is a 4.3% increase, the smallest rise in more than a decade, CalPERS said.
Several board members criticized the Kaiser increases, but the insurer said the increases are in line with overall industry trends.
CalPERS spends about $5 billion annually on health care (Ortiz, Sacramento Bee, 6/20).