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CalPERS 2026 rate changes: Salinas HR briefs committee on premium increases and pharmacy manager transition
Summary
HR presented CalPERS plan premium increases for 2026, the elimination of Blue Shield Trio HMO in Monterey County (transition to Blue Shield Access Plus), a pharmacy benefit manager contract change to CVS Caremark, and the city's multi-year health-cost trend and contribution status.
Patricia (Human Resources) briefed the Finance Committee on CalPERS 2026 health premium changes, plan transitions and the city’s health‑benefit cost trends.
CalPERS communicated 2026 increases across plans: the largest increases cited were the Platinum PPO (about 13.15%) and Blue Shield Access (about 11.26%). Patricia said CalPERS is eliminating the Blue Shield Trio HMO plan in Monterey County and will transition members to Blue Shield Access Plus (HMO); about 76 Salinas employees will be affected and can select alternative plans during open enrollment.
CalPERS also announced a new pharmacy benefits manager: CVS Caremark will replace OptumRx under a five‑year contract; CVS put funding at risk tied to drug-cost control commitments. Patricia said most members should not experience network disruption but some employees could see formulary changes and CalPERS/CVS will offer transition options.
The nut graf: city HR staff reported that health costs rose materially over recent years and that the city’s projected health costs for fiscal year 2025–26 are about $14.9 million, with estimated employee contributions of $789,000. HR noted the city has implemented phased employee cost‑sharing recommendations from 2018 and that ongoing negotiations with public-safety units could change employer contributions in 2026.
Patricia provided historical totals: the city’s health-cost increase over the last three years totaled roughly $2.0 million; plan enrollments show 68% of employees enrolled in Gold/Platinum plans and 32% in other plans or waiving coverage.
Ending: the presentation was informational; HR said it will communicate plan transitions and any formulary impacts to affected employees during open enrollment and continue negotiations on contribution levels with bargaining units.
