CalPERS Panel Calls for Hiking Health Premiums by an Average of 9.1%
On Tuesday, a California Public Employees Retirement System committee recommended health insurance premium increases along with other measures aimed at controlling rising health care costs, the Sacramento Bee reports.
Brad Pacheco, spokesperson for CalPERS, said premiums are expected to increase by an average of 9.1% in 2011. The figure accounts for:
- A 10.6% increase in premiums for basic HMO plans;
- An 8.7% increase in premiums for basic PPO plans; and
- A 3.4% increase in premiums for Medicare beneficiaries.
Individuals enrolled in Blue Shield's Access Plus plan would see premium increases of 16.4%.
The hikes would bring CalPERS' total premium costs to $6.7 billion. The share that state workers would need to pay would be determined by contract negotiations between the state and the workers' unions.
CalPERS also is expected to institute measures designed to encourage beneficiaries to fill prescriptions by mail, use lower-cost hospitals and take other actions to help the pension fund cut costs (Calvan, Sacramento Bee, 6/16).
CalPERS Seeks Additional State Contribution
Also on Tuesday, CalPERS' Benefits and Program Administration Committee approved a $600 million increase in the state's contribution to the pension fund (Central Valley Business Times, 6/15).
The increase could bring the total state contribution to $3.9 billion for the fiscal year that starts on July 1, up from $3.3 billion in the current fiscal year (Anderson, Sacramento Business Journal, 6/15).
The CalPERS Board of Administration is expected to hold a vote Wednesday on the proposed increase (Central Valley Business Times, 6/15).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.