CalPERS PPO Premium Break Could Boost State General Fund
On Wednesday, CalPERS moved to use $265 million in reserves from its self-funded PPO plan to waive premium contributions for two months from workers enrolled in the plan, the state and public agencies, the Sacramento Bee reports.
The move would free up $131 million in California's general fund and save member agencies about $90 million.
The premium holiday would save 324,000 workers about $43 million in paycheck deductions.
The proposal requires approval from the Legislature and Gov. Arnold Schwarzenegger (R).Â It would not affect premiums for public workers who are enrolled in HMO plans.
Where Is the Money Coming From?
Lower-than-expected costs for CalPERS' PPO plan last year translated to a jump in reserves.If the plan is approved, the PPO plan still would have reserves of $566 million (Calvan, Sacramento Bee, 4/24). 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.