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San Francisco health board unanimously approves 2023 rate changes for medical, pharmacy and dental plans
Summary
The Health Service Board on May 12 approved staff recommendations for 2023 rates across major plans — Blue Shield HMOs and PPO, Health Net Canopy Care, Kaiser Permanente and Delta Dental — citing varying drivers including capitation changes, stabilization adjustments and specialty drug costs. All motions passed unanimously.
The San Francisco Health Service Board voted unanimously May 12 to approve 2023 rate renewals and rate cards for the city’s employee and early‑retiree health and dental plans, following presentations from staff and actuaries.
Board President and executive staff opened the meeting with procedural items before Aon actuary Mike Clark reviewed the recommended rate changes. Clark said the overall environment reflects a blend of plan experience, rate‑stabilization adjustments adopted after pandemic suppression, and a continuing inflationary pressure in specialty drugs. “The rate increase projects about 6% increase for expected claim experience,” Clark said when summarizing underlying national cost trends that inform local recommendations.
Why it matters: the board’s approvals set employer and member contributions for hundreds of thousands of covered lives and lock in plan pricing that will take effect for plan year 2023. Several votes produced notable contrasts in direction: Health Net’s new Canopy…
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