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Board approves Health Net Canopy Care 2024 rate cards, citing a 3.7% net increase after buy-down
Summary
The Health Service Board approved 2024 Health Net Canopy Care HMO rate cards reflecting a 3.7% projected increase from 2023 to 2024 after applying a rate-stabilization buy-down; board discussion noted capitation and pharmacy components behind the recommendation.
The board voted to approve the recommended 2024 Health Net Canopy Care HMO rate cards, which Aon presented as reflecting a 3.7% overall increase in projected medical, prescription drug and fee costs from 2023 to 2024 after accounting for a stabilization buy-down.
Aon actuary Mike Clark reviewed the components driving the recommendation: a 15.3% capitation increase into 2024 (from a reduced 2023 capitation base), lower-than-expected pharmacy per-member-per-month experience for SFHSS in 2022'2023, a 3% medical administrative fee increase as part of a three-year fee schedule, and a previously approved $118,000 rate-stabilization buy-down. Clark said the net effect produced about a 5.5% plan-cost increase before the stabilization buy-down, arriving at a 3.7% net recommendation.
Motion and vote: A commissioner moved to approve the Health Net Canopy Care 2024 rates; the motion was seconded and the board approved the recommendation by roll call (Vice President Howe, Commissioners Breslin, Canning, Fonsby, and Zavansky recorded Aye; chair noted the vote was unanimous with some reluctance reported).
What it means: The approved rate cards set employer- and member-level contributions under SFHSS formulas for active employees and early retirees and will be implemented for plan-year renewals. Staff said remaining non-Medicare plan renewals will be presented at the May 25 special meeting.
