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Board approves $649.17 10-county survey amount for 2018
Summary
The San Francisco Health Service System Board adopted Aon Hewitts recommended 10-county single-coverage contribution amount of $649.17 for 2018 after an actuarial presentation showing a 7.33% year-over-year increase; the motion passed unanimously.
Anil Kocher, an actuary with Aon Hewitt, told the San Francisco Health Service System Board that the required 10-county survey — an average of single-coverage employee contributions for the 10 most populous California counties — yields a projected 2018 single contribution of $649.17. Kocher said the figure reflects a 7.33% increase over the prior period and noted that some counties reduced benefits or shifted to high-deductible designs, which inflates averages.
Kocher explained the methodology and legal basis in the Charter, saying the process averages contribution amounts across plans and then adjusts to represent the anticipated average public-sector employee contribution. "Once you average that, do whatever you deem is necessary to adjust that number so that it represents what you would anticipate to be the average contribution," Kocher said during his slide presentation. He also noted the survey remains relevant for early retirees and post-65 retirees even where collective bargaining currently sets different employee contributions.
Board members asked clarifying questions about peer counties such as Santa Clara and the effect of plan design changes on the averages. Commissioner Follinsbee emphasized that the surveys calculation is an "average of averages," not a weighted average by enrollment, and Kocher confirmed the charter-embedded algorithm was followed.
President Scott moved to approve the 10-county survey amount as presented. The motion carried unanimously with no public comment recorded.
The board will compare the adopted figure to local plan contributions when it finalizes 2018 rate tables and in Mays follow-up presentations.
