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 CalPERSw Board of Administration foractiohn Wednesday. Basic HMO rates for state workerd will rise an averageof 3.43 percent in down from almost 6.6 percent in 2009. The rate hikes run from a low of 0.32 percenf for Blue Shield Net Value to a highof 4.9 percengt for Kaiser. Figures for public agenct workers varyby region. Medicare HMO ratew for all workers and regiona will increase an averageof 0.27 percenrt in 2010, but vary from a 12.27 drop for memberz of Blue Shield Access+ to a 6.5 percenyt increase for Kaiser members.
“We are extremely pleasex to presentthese rates,” Gregory Franklin, assistant executiver officer of CalPERS health benefits branch, told committee memberzs Tuesday. “Negotiations were extremely There were many optionss and extra meetings on what we werelooking for: affordability.” The Kaiser rates were achieved by aligningg them with the Blue Shields benefit design, Franklin Kaiser will eliminate chiropractic benefitsd next year and increase the copayment for a 100-dat supply of prescription drugs. CalPERS kept the lid on increasese atits self-funded preferred provider organizationm plans by using $46.7 million in surplus reserveas to “buy down” rates.
The averaged PPO rate increase for state workers in 2010is 3.29 but it runs from a low of 1.38 percentf for PERS Select to a high of 12 perceng for PERSCare. Medicare PPO rates will increase an averageof 0.27 percen in all areas, but they range from a 12.27 percen t drop for Blue Shield Access + to a 6.5 percent increase for Kaisedr coverage. Committee chair Priya Mathur applauded the plans and CalPERdS staff for the goodrate news, adding that the smallk increases in 2010 are due to cumulatives changes over the last severak years to operate the health benefits program more cost-effectivel y without jeopardizing quality of care.