Title
a. Receive a report on the upcoming CalPERS health plan changes for plan year 2022.
b. Provide direction to implement changes.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive a report on the upcoming CalPERS health plan changes for plan year 2022.
b. Provide direction to implement changes.
SUMMARY/DISCUSSION:
On November 17, 2020, the California Public Employees' Retirement System (CalPERS) Pension and Health Benefits Committee approved a recommendation, and CalPERS subsequently adopted additional changes to the offered health insurance plans. Effective January 1, 2022, CalPERS will provide two Preferred Provider Organization (PPO) options: PERS Platinum and PERS Gold. CalPERS published statewide preliminary premium rates in June 2021, with final rates expected to be published in July 2021.
By way of background, the County first entered into agreement with CalPERS in 2000 to provide health insurance benefits to County employees. At that time, CalPERS offered two PPO plans, PERS Care and PERS Choice, with PERS Choice being the base plan. It was the intent of the County to provide healthcare coverage tied to the CalPERS PPO base plan. As such, the County contribution amounts were calculated using the PERS Choice plan premiums.
In 2008, CalPERS introduced a new PPO plan, PERS Select, specifically designed to be the new base plan. With the introduction of PERS Select, PERS Choice became the mid-tier plan. The County did not revisit the County's contribution to account for the addition of the new plan and continued to provide contribution amounts based on the PERS Choice plan. The County subsequently adjusted the contribution amount for unrepresented/non-union employees' health insurance which maintained the cashback of $368.06 for employee only coverage, a cashback of $53.65 for employee plus one coverage and an out of pocket cost of $100.00 for family coverage for those enrolled in the PERS Choice plan. Originally, emp...
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