CalPERS Committee To Consider Changing Premium Rating Regions
On Tuesday, a CalPERS committee will consider changes to its rating regions that could alter some public agencies' health care premiums next year, the Sacramento Business Journal reports.
Ten years ago, CalPERS began a regional rating system to ensure that public agencies in less costly areas participate in the pension program.
The rating system initially seemed to stabilize participation, according to the Business Journal.
However, public agency growth in the program for 2014 was less than a third of the net gain in 2010.
As a result, CalPERS evaluated county costs and developed three potential plans to more accurately reflect geographic discrepancies in health care costs.
Details of Proposals
The proposals are aimed at altering rating regions to better reflect geographic variances in health care costs.
The first proposal being considered by CalPERS this week would shift three Sacramento-area counties into the current Bay Area region, including:
- El Dorado;
- Placer; and
If approved, the proposal could raise premiums in the Sacramento region and lower rates in the Bay Area.
A second proposal being considered would shift six lower-cost Bay Area counties into the Sacramento region. If the proposal is approved, those counties could pay lower premiums, while the Bay Area counties could pay higher premiums.
A third proposal would not shift any counties in the regions.
The CalPERS Pension Health Benefits Committee is scheduled to vote on the proposals Tuesday (Robertson, Sacramento Business Journal, 3/17).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.