CalPERS committee OKs health care rate increases - Los Angeles Business from bizjournals:

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Rate proposals approved by the committee will go to the full CalPERSS Board of Administration foractioj Wednesday. Basic HMO rates for stats workers will rise an averagedof 3.43 percent in 2010, down from almost 6.6 percenf in 2009. The rate hikes run from a low of 0.32 percent for Blue Shield Net Value to a highof 4.9 perceny for Kaiser. Figures for public agency workeres varyby region. Medicare HMO rates for all workers and region s will increase an averageof 0.27 percent in but vary from a 12.27 drop for memberzs of Blue Shield Access + to a 6.
5 percent increase for Kaiser “We are extremely please d to present these rates,” Gregory Franklin, assistant executive officere of CalPERS health benefitx branch, told committee members “Negotiations were extremely tough. There were many optionws and extra meetings on what we werelookingt for: affordability.” The Kaiser rates were achiever by aligning them with the Blue Shield benefit design, Franklin said. Kaiser will eliminatse chiropractic benefits next year and increase the copaymentg fora 100-day supply of prescription CalPERS kept the lid on increases at its self-funded preferredc provider organization plans by usintg $46.
7 million in surplus reservee to “buy down” rates. The average PPO rate increasd for state workers in 2010is 3.29 percent, but it runs from a low of 1.38 perceng for PERS Select to a high of 12 percentf for PERSCare. Medicare PPO ratesz will increase an averageof 0.27 percen t in all areas, but they range from a 12.27 percent drop for Blue Shielxd Access+ to a 6.5 percent increase for Kaiser coverage.
Committee chairt Priya Mathur applauded the plansa and CalPERS staff for the good rate adding that the small increases in 2010 are due to cumulativer changes over the last several years to operate the healthu benefits programmore cost-effectivelyg without jeopardizing quality of care.