CALPERS: Finalizes 10.75% Rate Increase For Kaiser
The state's Public Employees' Retirement System (CalPERS) yesterday finalized a deal that will grant Kaiser Permanente a 10.75% rate hike from the state system. The Sacramento Bee reports that the "agreement ... could affect dealings between health plans and employers nationwide." Yesterday's agreement sealed a deal that CalPERS' board tentatively approved last week. In exchange for the rate increase, CalPERS won "a major concession" -- it will be able to oversee Kaiser's price-setting formulas to ensure "that premium changes next year and beyond are deserved." CalPERS spokesperson Pat Macht said: "Although we didn't get great relief on the rates, what we did get is the ability to sit at Kaiser's table and provide our viewpoint on their strategic decision-making." Macht called the oversight agreement "our insurance policy against runaway inflation." Kaiser officials said allowing CalPERS oversight will "strengthen the corporate relationship between the two parties." However, health plan officials said they do not plan to give their other customers the same audit privileges (Young, 6/17).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.