CalPERS Board Adopts 2016 Health Plan Premium Rates
The California Public Employees’ Retirement System’s (CalPERS)
Board of Administration adopted health care premium rate and plan
changes for 2016. The recommendations include adopting a Medicare
plan alternative – UnitedHealthcare’s (UHC) Medicare Advantage
Preferred Provider Organization (PPO) plan – and eliminating
Medicare Advantage plans currently offered by Anthem Blue Cross,
Blue Shield of California, Health Net and Sharp. Kaiser
Permanente will continue to offer its Medicare Advantage plan and
the CalPERS PPO Medicare Supplement plans will remain in
CalPERS’ decision to adopt UHC’s PPO could save a minimum of $24 million if at least 40,000 members move into this new Medicare plan option.
The UHC Medicare plan will provide coverage for Medicare Parts A, B and D. Members enrolled in the UHC plan will be able to use it in all 58 California counties and in all U.S. states and territories. In addition, for Medicare retirees from contracting agencies who do not have vision and dental benefits, the UHC plan includes an optional dental and vision benefit paid directly to UHC by the retiree. View frequently asked questions about CalPERS UnitedHealthcare Medicare Advantage PPO.
As many retirees assess the impact of the Medicare changes on their 2016 health plan choices, members enrolled in Basic health plans will be considering their options based on the recommended premium rate changes for 2016. On average, the premiums increased a little under $45 per month, for a single individual premium.
CalPERS offers six Health Maintenance Organization (HMO) Basic coverage plans throughout California, three Preferred Provider Organization (PPO) Basic plans and three association health plans. Anthem Blue Cross, Blue Shield of California, Kaiser Permanente, Health Net and UnitedHealthcare provide HMO coverage in most of California. Sharp Health provides coverage in San Diego County. Anthem will also continue serving as the Third Party Administrator for CalPERS’ self-funded PPO health plans. All of the CalPERS health plan provider contracts expire December 31, 2018.
For detailed rate information by plan and region, click here.