Board approves 2026 health plan rates after review of CalPERS option; unions press for direct CalPERS briefing

The El Dorado County Board of Supervisors on Aug. 19 approved a package of actions to set 2026 employee health plan rates and to authorize administrative renewals while receiving a staff study of CalPERS health as an alternative.

Human resources Director Joey Carusco told the board the county’s analysis found that, using current enrollment and 2026 rate comparisons, “the county could potentially save $1,600,000 in total premiums for our active employees” if it moved its active workforce to CalPERS health plans. He added that the change would also expand county obligations to retirees and would reduce the county’s flexibility over plan design because CalPERS controls offerings under the Public Employees’ Medical and Hospital Care Act (PEMHCA).

The presentation and follow-up questions focused on tradeoffs. Staff estimated implementing a transition could take 18 to 24 months and described two retiree-entry options CalPERS outlined: immediate contribution parity (PEMHCA minimum) or a 20-year phase-in. Carusco said either option could create a new near-term cost to the county; staff projected first-year added costs for retirees could range “between an estimated $250,000 and $2,700,000” depending on choices and enrollment. County officials also said the county’s existing unfunded retiree liability (unaligned actuarial liability) for legacy retiree health was roughly $85 million to $97 million.

The board heard nearly two hours of public comment. Union representatives urged the board to pursue CalPERS to improve recruitment and retention and to stabilize rates. Jenna Maldi, president of Local 1, said, “This is something that will improve employee longevity. This is something that will improve your retention, and you will see cost savings from those actions.” Retirees and other members of the public cautioned that many details remain unresolved, especially relating to retiree coverage and long-term liabilities.

Several unions asked the board to broker a meeting that would allow union leaders to hear directly from CalPERS and to examine the actuarial implications. Supervisors debated whether staff’s analysis—commissioned at the request of the budget ad hoc committee—already provided the needed information or whether a facilitated meeting with CalPERS and unions was warranted to build trust. A motion to approve the staff recommendations carried on the board floor; the action to approve the staff-recommended 2026 health plan rate cards, to authorize the director of human resources (or assistant director) to execute administrative health and benefit program renewals, and to grant HR authority to correct minor clerical errors was approved by the board (recorded vote: passed 4–1).

The board did not adopt any decision to switch carriers or to restore retiree health; staff emphasized any change would require labor negotiations with represented units, actuarial study, and compliance with administrative timelines. Carusco repeated that the county can continue to evaluate options and that return to CalPERS would alter retiree obligations and ancillary benefits (dental, vision, life and others would remain county responsibilities). The board’s approval keeps the county’s 2026 plan administration and rate-setting authority with staff while leaving broader policy decisions for future discussion.

What’s next: staff will implement the authorized administrative steps for 2026 plan renewals and provide follow-up information to the board and the budget ad hoc committee. Unions and retirees pressed for additional briefings, and some supervisors said they supported scheduling a follow-up meeting in which CalPERS could present directly to county negotiators and labor representatives.