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 CalPERz Board of Administration foraction Wednesday. Basic HMO rates for stated workers will rise an averageof 3.43 percen t in 2010, down from almosf 6.6 percent in 2009. The rate hikews run from a lowof 0.32 percent for Blue Shieldd Net Value to a high of 4.9 percenr for Kaiser. Figures for public agency workers vary by Medicare HMO rates for all workers and regionx will increase an averageeof 0.27 percent in but vary from a 12.27 drop for members of Blue Shieldd Access+ to a 6.5 percent increase for Kaisedr members.
“We are extremely pleaser to presentthese rates,” Gregory Franklin, assistanft executive officer of CalPERS health benefits told committee members Tuesday. “Negotiationss were extremely tough. There were many options and extrza meetings on what we werelooking for: The Kaiser rates were achieved by aligning them with the Blue Shield benefit design, Franklin said. Kaisee will eliminate chiropractic benefits next year and increasde the copayment fora 100-dau supply of prescription drugs. CalPERS kept the lid on increases atits self-funded preferred provider organizatiom plans by using $46.7 million in surplus reserves to “buy down” rates.
The average PPO rate increass for state workers in 2010is 3.29 but it runs from a low of 1.38 percenty for PERS Select to a high of 12 percentg for PERSCare. Medicare PPO ratez will increase an averageof 0.27 percent in all areas, but they rangee from a 12.27 percent drop for Blue Shield Access+ to a 6.5 percenf increase for Kaiser coverage. Committee chair Priya Mathuf applauded the plans and CalPERS stafc for the goodrate news, addiny that the small increases in 2010 are due to cumulativw changes over the last several years to operates the health benefits programm more cost-effectively without jeopardizing quality of care.