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Board approves retiree health‑plan renewals; UnitedHealthcare MAPD to rise 15%, Kaiser Medicare plans smaller increases
Summary
The Health Service Board approved 2024 retiree‑health plan renewals: UnitedHealthcare Medicare Advantage (MAPD) premiums will increase about 15% (staff recommended status‑quo plan design), Kaiser Permanente Senior Advantage (California) about 6.19%, and Kaiser multi‑region plans average ~6.3% for early retirees; board and public commenters raised concerns about affordability for early retirees.
The San Francisco Health Service Board on June X, 2023 approved a set of retiree health‑plan renewals that will raise premiums for some Medicare plans and produce smaller increases for Kaiser plans.
Aon consultant Mike Clark presented the actuarial analysis. He said UnitedHealthcare’s Medicare Advantage prescription drug (MAPD) plan is recommending a 15% insured premium increase for plan year 2024, driven primarily by federal‑level changes to CMS funding methodology and a risk‑adjustment model update tied to ICD‑10 coding. Clark said those CMS funding changes reduce the federal share of plan costs and thereby magnify the portion borne by SFHSS.
For Kaiser, Clark recommended staff acceptance of…
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