CalPERS committee OKs health care rate increases - Sacramento Business Journal:

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Rate proposals approved by the committee will go to the full CalPERe Board of Administration for action Wednesday. Basic HMO rates for state workers will rise an averageof 3.43 percent in 2010, down from almost 6.6 percenf in 2009. The rate hikes run from a low of 0.32 percenyt for Blue Shield Net Value to a highof 4.9 percen for Kaiser (see chart). Figures for public agenc y workers varyby region. All three HMO plans will drop ratesw in 2010 for members in Placer and ElDorado counties. Yolo County ratesd will increase from a lowof 0.98 percent for Blue Shield Net Value to a high of 4.77 percenyt at Kaiser. Medicare HMO rates for all workerss and regions will increase an averageof 0.
27 percentt in 2010, but vary from a 12.27 drop for member s of Blue Shield Access++ to a 6.5 percent increasw for Kaiser members. “We are extremely pleased to presentthese rates,” Gregory assistant executive officer of CalPERS health benefits branch, told committee membersx Tuesday. “Negotiations were extremely tough. There were many optionzs and extra meetings on what we werelooking for: The Kaiser rates were achieve d by aligning them with the Blue Shielx benefit design, Franklin said. Kaiser will eliminated chiropractic benefits next year and increase the copayment fora 100-dagy supply of prescription drugs.
CalPERS kept the lid on increases atits self-fundede preferred provider organization plans by using $46.7 million in surpluws reserves to “buy down” rates. The average PPO rate increase for statw workers in 2010is 3.29 percent, but it runs from a low of 1.38 percen t for PERS Select to a high of 12 percent for Public agency workers in Sacramento, Placedr and El Dorado counties who are coveredd by PPO plans will see ratezs drop as much as 5.57 for PERS Select and to an increasw of 4.32 percent of PERS Care. Yolo County rate hikex run from 4.8 percent for PERS Select to 15.68 percent for PERS Care. Medicare PPO rates will increase an averagedof 0.
27 percent in all but they range from a 12.27 percent drop for Blue Shields Access+ to a 6.5 percent increase for Kaiser coverage. Committee chair Priya Mathudr applauded the plans and CalPERS stafft for the good rate adding that the small increases in 2010 are due to cumulativw changes over the last several years to operate the healtgh benefits programmore cost-effectively withou t jeopardizing quality of care.