CalPERS Members Save $21.3M by Switching to Cheaper Health Plans
CalPERS members will save an estimated $21.3 million in annual premiums because many switched to less-expensive health plans this year, the Sacramento Business Journal reports.
Traditionally, two statewide health maintenance organizations run by Kaiser Permanente and Blue Shield of California have served CalPERS.
However, CalPERS added four health plans to its lineup for 2014:
- Anthem Blue Cross;
- Health Net;
- Sharp Health Plan; and
Details of Savings
As a result of the change, more than 5% of CalPERS members changed their health plans -- up 50% from 2013.
According to a report by CalPERS staff members, the majority of the savings came from members opting out of the traditional HMOs and selecting the less expensive plans (Robertson, Sacramento Business Journal, 2/14).
- Anthem had a net gain of more than 11,000 members;
- Blue Shield had a net gain of more than 6,000 members (Robertson, Sacramento Business Journal, 2/18);
- Health Net had a net gain of 601 members;
- Kaiser had a net loss of nearly 13,000 members;
- Sharp had a net gain of 880 members; and
- UnitedHealthcare had a net gain of 3,520 members (Sacramento Business Journal, 2/14).