With CalPERS changing its rating methodology for group medical plans in 2022, CalPERS members may be looking for alternative providers such as GSRMA’s Health Benefits Program
According to Alliant Insurance Services, in 2022, CalPERS medical plans will be rated on value, not on risk. This means more credibility will be given to the actuarial value of a health plan than to the claims cost per employee enrolled in the plan. This change is forecast to yield rate changes in 2022 in excess of more than 20% for some CalPERS plans.
In a public meeting on November 17, 2020, CalPERS staff forecast plan and rate changes for 2022. Listed below are the key changes described at that CalPERS Pension and Health Benefits Committee meeting:
- The PERS Choice PPO will be eliminated. Enrollees who wish to retain CalPERS PPO coverage in 2022 may move to PERS Care or PERS Select.
- PERS Select will be re-named PERS Gold, and PERS Care will be re-named PERS Platinum.
- 2022 rates for PERS Select (Gold) are forecast to increase more than 20%, while for PERS Care (Platinum) rates are forecast to decrease by approximately 10%.
- CalPERS suggested that benefits for PERS Select (Gold) will be reduced in 2023 to further differentiate the plan from PERS Care (Platinum). This change will be discussed further and is expected to be finalized by the CalPERS Pension and Health Benefits Committee in Fall 2021.
- 2022 rates for the CalPERS broad network HMOs Anthem Traditional and Blue Shield Access+ will change slightly. Rates for the United Healthcare Alliance HMO are forecast to increase more than 8%.
- In November 2020, it was estimated that Kaiser’s 2022 rates might be as much as 3% higher than their 2021 rates.
- Some health plans will expand their service areas and other new models of narrow network plans will be offered, mostly in Southern California.
CalPERS recently published finalized 2022 rates in mid-July, with a limited time period to consider options.
In contrast to the CalPERS 2022 rate forecast, GSRMA’s Medical Benefits Program received a 3.3% rate increase in 2022. Our Benefits Program includes medical, dental, vision, basic life, AD&D, short term disability, long term disability, and an employee assistance program. For additional details and complete rate information, please contact Naomi Whatley at our Employee Benefits Department.