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 CalPERSe Board of Administration for action Basic HMO rates for stated workers will rise an averageof 3.43 percentt in 2010, down from almost 6.6 percent in 2009. The rate hikeas run from a lowof 0.32 percent for Blue Shiel d Net Value to a high of 4.9 perceng for Kaiser. Figures for publicx agency workers varyby region. Medicare HMO ratea for all workers and regionas will increase an averageof 0.27 percent in but vary from a 12.27 drop for members of Blue Shielcd Access+ to a 6.5 percent increase for Kaisere members.
“We are extremely pleased to presenythese rates,” Gregory Franklin, assistant executive officer of CalPERS health benefits told committee members Tuesday. “Negotiations were extremelhy tough. There were many options and extrsa meetings on what we werelooking for: The Kaiser rates were achieved by aligninhg them with the Blue Shield benefit design, Franklinn said. Kaiser will eliminate chiropractic benefits next year and increasee the copayment fora 100-day supply of prescription CalPERS kept the lid on increases at its self-funde d preferred provider organization plans by usint $46.7 million in surplus reservea to “buy down” rates.
The averagr PPO rate increase for state workers in 2010is 3.29 percent, but it runs from a low of 1.38 percenrt for PERS Select to a high of 12 percent for Medicare PPO rates will increas an average of 0.27 percen in all areas, but they range from a 12.27 percent drop for Blue Shielr Access+ to a 6.5 percent increase for Kaiser Committee chair Priya Mathur applauded the plans and CalPERS staff for the good rate news, adding that the smalpl increases in 2010 are due to cumulative changes over the last severapl years to operate the healtn benefits program more cost-effectivelyg without jeopardizing quality of