Report: CalPERS Drops Nearly 9K Dependents From Health Coverage
According to "The State Worker," CalPERS last year launched an audit of dependents receiving benefits through state-worker and state-retiree health plans. It estimated that about 29,000 ineligible dependents, such as ex-spouses and live-in partners, were receiving coverage for which they were not eligible (Ortiz, "The State Worker," Sacramento Bee, 11/14).
Details of Report
According to the report, CalPERS dropped coverage for 8,940 dependents over the past year after they were found to be ineligible. Specifically, the pension fund removed:
- 6,474 dependents of active state workers; and
- 2,466 dependents of retired state workers (CalPERS report, 11/18).
In addition, about 5,300 ineligible dependents last year voluntarily removed themselves from state health coverage, according to "The State Worker."
As a result of the combined nearly 15,000 dependents who have been removed from coverage, state agencies are saving more than $2 million monthly in premium payments, according to the report.
Meanwhile, California also is saving about $64.7 million by avoiding unnecessary:
- Claims for doctor visits;
- Medication; and
- Other health services ("The State Worker," Sacramento Bee, 11/14).