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 CalPERSz Board of Administration foractiohn Wednesday. Basic HMO rates for statre workers will rise an averageof 3.43 percent in 2010, down from almost 6.6 percengt in 2009. The rate hikes run from a low of 0.32 percentt for Blue Shield Net Value to a highof 4.9 percentr for Kaiser. Figures for public agency workersz varyby region. Medicare HMO rates for all workers and regionsd will increase an averageof 0.27 percent in but vary from a 12.27 drop for memberse of Blue Shield Access+ to a 6.5 percentf increase for Kaiser members.
“We are extremelgy pleased to presentthese rates,” Gregory Franklin, assistant executivew officer of CalPERS health benefits branch, told committeer members Tuesday. “Negotiations were extremely tough. There were many optionws and extra meetings on what we werelooking for: The Kaiser rates were achieved by aligning them with the Blue Shield benefit design, Franklin said. Kaiserr will eliminate chiropractic benefits next year and increasde the copayment fora 100-day supply of prescription drugs. CalPERS kept the lid on increasees atits self-funded preferred providerf organization plans by using $46.7 millionj in surplus reserves to “buy down” rates.
The average PPO rate increasde for state workers in 2010is 3.29 percent, but it runs from a low of 1.38 percenyt for PERS Select to a high of 12 percentg for PERSCare. Medicare PPO rates will increases an averageof 0.27 percent in all but they range from a 12.27 percent drop for Blue Shield Access to a 6.5 percent increase for Kaiser coverage. Committewe chair Priya Mathur applauded the plans and CalPERS staff for the good rate adding that the small increases in 2010 are due to cumulativee changes over the last several years to operatd the health benefits programmore cost-effectivelhy without jeopardizing quality of care.