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Board approves multi-part UHC city‑plan changes; stops short of using remaining stabilization funds
Summary
The board approved multiple UnitedHealthcare city‑plan changes—new separate plan for members without plan choice, provider-network adjustments, higher drug copays aligned with Blue Shield, higher out‑of‑network deductibles and a three‑year retiree tiering change—but declined at this meeting to apply the remaining $1,065,000 stabilization balance to offset employer costs.
Aon presented a multi‑year, multi‑pronged plan to sustain the UnitedHealthcare (UHC) city plan. The board voted unanimously to approve five actions for 2019: (A) create a separate "city plan choice not available" plan for enrollees who lack other plan options by geography; (B) migrate California members to UnitedHealthcare's Select Plus network to realize negotiated savings; (C) align UHC prescription copayments with Blue Shield levels; (D) increase out‑of‑network deductibles (to promote in‑network use); and (E) begin a three‑year migration of early‑retiree rate‑tier ratios to the Blue Shield model for family tiers.
Aon estimated that B, C and D together would reduce the plan's actuarial base and that A and E would create additional employer costs for 2019 totaling roughly $1,065,000. The actuary explained the board could apply remaining rate stabilization balances to offset that cost, but doing so would require a one‑time suspension of the stabilization policy. The board approved A–E but did not move to suspend the policy or apply the larger remaining balance, asking staff to return with recalculated rate cards showing the impact if the stabilization money is not used.
Direct numbers presented included a projected 3.8% aggregate increase for the city plan absent changes, and that B–D would reduce that to roughly a 1% increase; the 2017 stabilization carry‑forward was cited as $1,661,000 with $554,000 applied by policy and $1,107,000 available, of which staff proposed using $1,065,000 to fund A and E if the board chose to do so. Commissioners and public commenters expressed concern about out‑of‑network members (1,127 unique members used at least one out‑of‑network provider in 2017) and retirees on fixed incomes facing higher copays.
