Benefits board OK's 2011 plans - no reduction in benefits, some increases in premiums for three plans; Aetna, Kaiser Value plans emliminated for 2011

The Public Employees Benefits Board this afternoon (July 21) took its annual vote on the next calendar year’s benefit plan structure and employee premium contribution rates.

Thanks to the $65 million the Federation and its members pushed the Legislature to adopt this spring, the schedule of benefits will stay level, Group Health will have no premium increases, but the remaining three plans (Uniform Medical Plan, Group Health Value and Kaiser Classic) will have increases.  The level playing field is still at too high a level.

The changes take effect Jan. 1, 2011.

The level benefits plan passed 5-0, while the premium rates passed narrowly 4-3, with Health Care Administrator Doug Porter breaking a 3-3 tie. Federation Executive Director Greg Devereux, Retirees Representative Gwen Rench and K-12 Retirees’ Lee Ann Prielipp all voted no.

So here are the monthly premium rates that take effect Jan. 1, 2011:

Group Health Classic – no increases; premiums remain $71 a month for employee; $152/mo for employee and spouse; $124/mo. for employee and children; and $205/mo. for full family.

Group Health Value – Monthly premiums increase: from $22 to $30 for employee; from $54 to $70 for employee and spouse; from $39 to $53 for employee and children; and from $71 to $93 for full family.

Kaiser Classic – Monthly premiums increase: from $72 to $105 for employee; from $154 to $220 for employee and spouse; from $126 to $184 for employee and children; and from $208 to $299 for full family.

Uniform Medical Plan – Monthly premiums increase: from $41 to $60 for employee; from $92 to $130 for employee and spouse; from $72 to $105 for employee and children; and from $123 to $175 for full family.

Aetna and Kaiser Value will be eliminated because they have become too costly. Those now in Aetna will need to choose a new plan during open enrollment in November or they will default to the Uniform Medical Plan. Those in Kaiser Value will need to choose a new plan or default to the Kaiser Classic Plan.

The premium increases for Uniform, Group Health Value and Kaiser Classic were defeated in the first vote. Federation Executive Director Greg Devereux, Retirees Representative Gwen Rench and K-12 Retirees’ Lee Ann Prielipp voted no. Only former Health Care Authority Director Margaret Stanley and state Personnel Director Eva Santos voting yes. But they tracked down board member Yvonne Tate by phone. The revote ended in a 3-3 tie, which HCA Administrator Doug Porter broke with his yes vote.

Devereux said cost increases “just keep coming and coming and coming,” even though mitigated by the $65 million the union won from the Legislature.

While the $65 million Federation members won from the Legislature kept benefits level, it’s a sad commentary that only four health plans remain for you to choose from, compared to 10 to 15 years ago. The four plans are: Uniform Medical Plan, Group Health Classic, Group Health Value and Kaiser Classic.

The benefits board’s actions should not be confused with upcoming bargaining on health benefits funding, which determines your share of premium costs. The board’s action stuck to the current negotiated 12 percent share – but for three plans, that meant increases because overall premium costs went up.

It should also not be confused with the Federation’s grievance to recoup $216.3 million in your health funds diverted by the Legislature in 2008. That diversion added an average of $1,500 to state employee health costs through higher deductibles and co-pays this past Jan. 1.