The San Francisco Health Service Board has approved significant rate increases for Kaiser Permanente and UnitedHealthcare Medicare plans for 2024, impacting retirees across multiple regions.

During the meeting, Mike Clark from Aon presented the proposed rates for Kaiser’s multi-region medical plans, which include coverage for retirees in Washington, the Northwest, and Hawaii. The total premium for these plans is projected at approximately $1.78 million, with rate changes ranging from no increase for Washington early retirees to a 9.9% hike for those in the Northwest. Overall, early retirees will see an average rate increase of 6.3%, while Medicare retirees will face a 4.5% rise. These adjustments are below national healthcare cost trends, reflecting a careful balance of community-rated pricing.

In a related discussion, the board also reviewed the Kaiser Permanente Senior Advantage plan for California, which will see a 6.19% increase in premiums. This plan serves over 14,000 Medicare-eligible retirees and is designed to remain competitive despite rising costs driven by changes in federal funding methodologies.

The most substantial increase came from UnitedHealthcare, which announced a 15% rise in premiums for its Medicare Advantage PPO plan. This increase is attributed to a shift in the Centers for Medicare and Medicaid Services (CMS) funding model and a change in risk adjustment coding. The board noted that the average monthly premium for this plan will rise to $514.31, with some members facing even higher costs.

The board unanimously approved both proposals, emphasizing the importance of maintaining quality healthcare options for retirees while navigating the complexities of rising healthcare costs. Public comments highlighted concerns about the need for better education and engagement among retirees regarding their healthcare options, signaling a call for increased outreach efforts in the future.