CalPERS Panel Approves Lower Hike for Public Workers’ HMO Premiums
Yesterday, CalPERS' Health Benefits Committee voted to approve a proposal to raise public workers' and retirees' HMO premiums by the lowest rate increase in 14 years, the Sacramento Business Journal reports.
The full CalPERS Board of Administration is scheduled to vote today on the rate increases (Robertson, Sacramento Business Journal, 6/16).
The health plan changes will affect about 1.29 million active and retired public workers and their families.
Rate Hike Details
Under the proposal, basic HMO premiums would increase by an average of 3.43%, compared with 6.6% in 2009. In addition, Medicare HMO rates would rise by 0.27%, compared with 1.6% in 2009.
Although PPO rates did not increase in 2009, CalPERS' plan would raise basic PPO premiums by 3.29% and increase Medicare PPO rates by 1.68%.CalPERS estimates that it will spend about $5.72 billion on health care this year (Ortiz, Sacramento Bee, 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.