Report: CalPERS Drops Nearly 9K Dependents From Health Coverage
CalPERS has removed about 9,000 dependents from its health insurance rolls, according to a report by the CalPERS Health Policy Research Division, the Sacramento Bee's "The State Worker" reports.
Background
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;
- Hospitalizations;
- Medication; and
- Other health services ("The State Worker," Sacramento Bee, 11/14).