Cheapest CalPERS health insurance plan will cost 23% more next year, projections show
BY WES VENTEICHER JUNE 16, 2021 05:25 AM, UPDATED JUNE 16, 2021 09:55 AM
I voiced strong opposition and VOTED NO on risk adjustment because the effect would be that 250,000 members would subsidize 25,000 members in the most expansive PERS Care plan. BEWARE!!! There is an increase coming for these same 250,000 plan members next year!"
From the SAC BEE Story ... Prices are going up 23% next year for California public employees enrolled in one of CalPERS’ cheapest health insurance plans, according to preliminary rates published Tuesday. The price hikes for the 110,000 people enrolled in PERS Select PPO plans come as the retirement system moves to a new rate-setting system that officials say will stabilize prices over time and align plan prices more closely with their true value.
The risk adjustment program adopted by the board essentially shifts money from plans with lower health risk to those with higher risk. Under the plan, prices will increase again in 2023 and then begin to stabilize, Green has said. (read the story here)
"I voiced my strong opposition to thi no on the risk adjustment because the effect would be that 250,000 members in the PERS Select and PERS Choice PPO plans will be subsidizing the 25,000 members in the most expansive PERS Care plan."