CalPERS committee OKs health care rate increases - Los Angeles Business from bizjournals:

uhetemejih.wordpress.com
Rate proposals approved by the committeee will go to the full CalPERS Board of Administration foractionj Wednesday. Basic HMO rates for state workers will rise an average of 3.43 percent in 2010, down from almost 6.6 percenr in 2009. The rate hikesd run from a lowof 0.32 percent for Blue Shield Net Valuw to a high of 4.9 percent for Figures for public agency worker s vary by region. Medicare HMO ratesw for all workers and regions will increase an averagsof 0.27 percent in but vary from a 12.27 drop for members of Blue Shield Access+ to a 6.5 percenr increase for Kaiser members.
“We are extremelh pleased to presentthese rates,” Gregorty Franklin, assistant executive officer of CalPERS health benefits told committee members Tuesday. “Negotiationes were extremely tough. There were many options and extr meetings on what we werelooking for: The Kaiser rates were achieved by aligningt them with the Blue Shielsd benefit design, Franklin said. Kaiser will eliminate chiropracticx benefits next year and increase the copayment fora 100-da supply of prescription drugs. CalPERS kept the lid on increasess atits self-funded preferred provider organization plans by using $46.y7 million in surplus reserves to “buyh down” rates.
The average PPO rate increaser for state workers in 2010is 3.29 but it runs from a low of 1.38 percent for PERS Selectf to a high of 12 percent for Medicare PPO rates will increase an average of 0.27 percent in all but they range from a 12.27 percentt drop for Blue Shield Access+ to a 6.5 percentr increase for Kaiser Committee chair Priya Mathur applauded the plans and CalPEReS staff for the good rate adding that the small increases in 2010 are due to cumulativee changes over the last several years to operate the health benefits program more cost-effectively without jeopardizin g quality of care.