Increases Predicted for CalPERS Health Plans in 2020

A May 15, 2019 Sacramento Bee article reports that CalPERS health plans for active and retired members are expected to see increases in 2020. Plans for active members and CalPERS basic plans for retirees' dependents who are not yet eligible for Medicare are expected to rise the most.

The premiums for the Kaiser HMO basic plan are expected to rise about 6%; and, the premiums for the PERSChoice basic plan are expected to increase about 5%, while the premiums for the benefit-rich PERSCare basic plan will rise about 9%. The increase for the PERSCare basic plan initially was projected at 24%; however, the CalPERS Board agreed to use $44 million of reserves to limit the increase.

According to the article, the largest projected increase - 24% - will be for the Health Net Smart Care HMO, which enrolled 10,000 new members following the departure of Blue Shield from the Bay Area.

Retirees and their Medicare-eligible dependents are projected to see smaller increases in their premiums for either CalPERS Supplement-to-Medicare plans or for CalPERS-sponsored Medicare Advantage plans such as those offered by Kaiser.

Negotiations with the insurers are continuing, and final premiums will be announced in June. Stay tuned!