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Board approves Kaiser 2025 rates, including multi‑region retiree plans
Summary
The Health Service Board approved Kaiser Permanente California and multi‑region 2025 rate cards (5.4% for California active/early retirees; 8.65% for Kaiser Senior Advantage Medicare retirees) and a model shift for out‑of‑state Kaiser Medicare drug coverage to mitigate projected large increases.
The Health Service Board on June 13 approved staff recommendations to adopt Kaiser Permanente rate cards for the 2025 plan year, including a 5.4% premium increase for California active employees and early retirees and an 8.65% increase for the Kaiser Permanente Senior Advantage Medicare HMO.
Aon actuary Mike Clark reviewed plan experience and explained that the California Kaiser renewal reflects improvements in plan experience following higher 2024 increases. Clark told the board the Kaiser renewal, combined with fewer settlement dollars applied this year, produced the 5.4% insured premium recommendation for active and early‑retiree HMO coverage.
For multi‑region retiree plans covering Washington, the Northwest and Hawaii, staff recommended and the board approved region‑specific rate cards and a shift to a Medicare Advantage Prescription Drug (MAPD) model for the Kaiser Washington Medicare product. Staff said the shift preserves federal Inflation Reduction Act funding for prescription drugs and reduces an otherwise projected drug‑driven increase that would have been about 46% down to roughly 15%, while staff reported minimal expected impact for most retirees.
The board also approved the associated rate cards and contribution tables reflecting city charter and MOU contribution rules, including the 10‑county benchmark and Prop E formula elements. Chief Operating Officer Rick Gyan said staff will conduct specialized outreach to affected out‑of‑state members. The Kaiser approvals were unanimous on roll‑call votes.
