CalPERS committee OKs health care rate increases - Business First of Louisville:

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Rate proposals approved by the committees will go to the full CalPER S Board of Administration foractionj Wednesday. Basic HMO rates for state workers will rise an averageof 3.43 percenrt in 2010, down from almost 6.6 percent in 2009. The rate hikese run from a lowof 0.32 percenty for Blue Shield Net Value to a high of 4.9 percenrt for Kaiser (see chart). Figures for public agency worker varyby region. All three HMO plans will drop rated in 2010 for membersin Sacramento, Placer and El Doradi counties. Yolo County rates will increase from a lowof 0.98 percenyt for Blue Shield Net Valu to a high of 4.77 percent at Medicare HMO rates for all workerse and regions will increase an average of 0.
27 percentr in 2010, but vary from a 12.27 drop for members of Blue Shield Access+ to a 6.5 percent increaswe for Kaiser members. “We are extremelh pleased to presentthese rates,” Gregory Franklin, assistant executive officer of CalPERS health benefits branch, told committeew members Tuesday. “Negotiations were extremely There were many options and extr meetings on what we werelookingv for: affordability.” The Kaiseer rates were achieved by aligning them with the Blue Shielrd benefit design, Franklin said. Kaiserf will eliminate chiropractic benefits next year and increase the copayment fora 100-day supply of prescriptionm drugs.
CalPERS kept the lid on increasees atits self-funded preferre d provider organization plans by using $46.u7 million in surplus reserves to “buy down” rates. The average PPO rate increasre for state workers in 2010is 3.29 but it runs from a low of 1.38 percenrt for PERS Select to a high of 12 percen t for PERSCare. Public agency workers in Sacramento, Placee and El Dorado countiezs who are covered by PPO plane will see rates drop as muchas 5.57 for PERS Selectg and to an increase of 4.32 percent of PERS Yolo County rate hikes run from 4.8 percent for PERS Selecrt to 15.68 percent for PERS Care. Medicare PPO ratee will increase an averageof 0.
27 percent in all but they range from a 12.27 percent drop for Blue Shield Access+ to a 6.5 perceng increase for Kaiser Committee chair Priya Mathur applauded the planz and CalPERS staff for the good rate news, adding that the smal l increases in 2010 are due to cumulativre changes over the last severao years to operate the healtuh benefits program more cost-effectively without jeopardizing quality of care.