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 CalPERa Board of Administration foractioj Wednesday. Basic HMO rates for state workerd will rise an averageof 3.43 percent in 2010, down from almostr 6.6 percent in 2009. The rate hikes run from a low of 0.32 percen t for Blue Shield Net Value to a highof 4.9 percent for Kaiser. Figures for public agency workers vary by Medicare HMO rates for all workerzs and regions will increase an averag eof 0.27 percent in 2010, but vary from a 12.27 drop for membersw of Blue Shield Access+ to a 6.5 percent increase for Kaiser members.
“We are extremely pleased to presenfthese rates,” Gregory Franklin, assistant executive officerr of CalPERS health benefits branch, told committede members Tuesday. “Negotiations were extremely tough. There were many optionsz and extra meetings on what we werelookintg for: affordability.” The Kaiser rates were achieved by aligning them with the Blue Shielxd benefit design, Franklin said. Kaiser will eliminat e chiropractic benefits next year and increase the copaymen t fora 100-day supply of prescription drugs. CalPERSx kept the lid on increases atits self-funder preferred provider organization plans by usinf $46.7 million in surplus reserves to “buy rates.
The average PPO rate increaswe for state workers in 2010is 3.29 but it runs from a low of 1.38 percent for PERS Selecrt to a high of 12 percent for PERSCare. Medicarde PPO rates will increase an averageof 0.27 percent in all but they range from a 12.27 percentg drop for Blue Shield Access+ to a 6.5 percent increase for Kaiser coverage. Committee chair Priyaa Mathur applauded the plans and CalPERSe staff for the goodrate news, adding that the small increases in 2010 are due to cumulative changes over the last severak years to operate the healtuh benefits program more cost-effectivelu without jeopardizing quality of care.