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CalPERS 2026 rate changes: Salinas staff report projected health‑benefit cost increases and plan shifts
Summary
HR staff told the committee CalPERS notified the city of 2026 premium increases (largest: Platinum PPO 13.15%, Blue Shield access 11.26%), a transition from OptumRx to CVS Caremark for pharmacy benefits, and an anticipated city health cost of about $14.9 million for fiscal year 2025‑26.
Patricia (surname not stated), an HR manager, briefed the Finance Committee on CalPERS health plan premium changes and other benefit logistics for 2026.
Patricia reported CalPERS forecasted premium increases with the largest shown for the Platinum PPO plan at 13.15% and Blue Shield Access at 11.26%, and said CalPERS attributed the increases to rising health‑care costs. She said CalPERS is eliminating the Blue Shield Trio HMO plan in Monterey County and replacing it with Blue Shield Access Plus; about 76 employees are expected to be affected and will be able to choose alternate plans during open enrollment.
Patricia also said CalPERS is transitioning pharmacy benefits from OptumRx to CVS Caremark under a five‑year contract; CalPERS said CVS put $250 million at risk under that contract to control drug costs. Employee enrollment figures presented showed about 68% of employees in Gold/Platinum tiers and the city is continuing to phase in employee contributions; HR staff estimated the city’s anticipated health‑care cost for fiscal year 2025‑26 at about $14,900,000 with employee contributions of about $789,000.
No action was required; staff said they would communicate plan changes to affected employees and the item was informational to the committee.
