CalPERS details health‑plan contract changes, pharmacy negotiation and Medicare premium monitoring

Yvonne Walker, a member of the CalPERS board, told webinar attendees that the board devotes substantial attention to CalPERS health benefits and is prioritizing cost management, quality and access.

Walker said HMO and PPO contracts were negotiated as five‑year agreements in the last two years. She noted CalPERS awarded the PPO contract to Blue Shield of California paired with Included Health and acknowledged transition “bumps” members may have experienced. “Anytime you're going through a transition, you're gonna have bumps, and, but we're trying to address any issues as quickly as possible,” she said, and she directed members with problems to call CalPERS’ 800 number for follow up.

Walker said this year’s Medicare rates were higher than usual because of federal changes and that CalPERS staff will engage in policy discussions about Medicare premiums for 2026. She also said CalPERS will begin negotiations for its next five‑year pharmacy benefit manager contract, noting pharmacy costs are a primary driver of overall health costs and that the negotiation “represents an important opportunity to make meaningful change.”

Walker encouraged members to consult CalPERS publications, including the Medicare Enrollment Guide and the YouTube video “Understanding Your Retirement Benefit Options.” She said the CalPERS website was recently refreshed and encouraged members to subscribe to the CalPERS YouTube channel for recordings of board meetings and webinars. Walker said she will have more to report at the July board meeting when the 2026 health plan premiums are released.

The board made no binding changes during the webinar; Walker said staff will continue implementation work and member outreach.