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Board approves Kaiser, Blue Shield and UHC 2017 rate renewals; adds limited benefit changes
Summary
The Health Service System board approved 2017 rate renewals for Kaiser (4.79% proposed increase), Blue Shield (4.26% overall) and the UnitedHealthcare EGWP premium ($218.99 PMPM), and accepted benefit changes including an acupuncture/chiropractic rider and a specialty‑tier Rx coinsurance for Kaiser.
The Health Service System Board approved 2017 renewals for its major carriers and accepted several benefit adjustments after presentations from Aon Hewitt and carrier representatives.
Aon Hewitt presented Kaiser Permanente’s proposed 2017 rates and recommended approval. The actuary said Kaiser proposed a 4.79% rate increase year‑over‑year; employee contributions illustrated in the packet showed a $2 per month increase for a single coverage tier. Kaiser also announced two benefit changes that the board accepted: a combined acupuncture and chiropractic rider (a $15 copay, up to 30 visits annually) and a specialty‑tier prescription benefit (20% coinsurance capped at $100 per prescription). Cindy Green of Kaiser described the acupuncture benefit as a self‑refer option administered through American Specialty Health Network and confirmed no prior authorization was required for in‑network providers.
The board then approved Blue Shield’s flex‑funded non‑Medicare rates. Aon Hewitt reported an overall 4.26% increase for the Blue Shield flex population that incorporates rate changes, amortization of the claim stabilization reserve and administrative items; Blue Shield reported no plan design changes for 2017 but noted an opt‑in identity protection (LifeLock‑like) offering.
For UnitedHealthcare, the board reviewed the Employer Group Waiver Plan (EGWP) premium that is embedded in Medicare‑retiree costs. UnitedHealthcare and Aon Hewitt explained technical drivers of a material adjustment to the EGWP component — changes in CMS reinsurance offsets and manufacturer discount mechanics — and presented a proposed EGWP premium of $218.99 per member per month. After discussion the board voted to approve that EGWP premium.
All three carrier rate items were approved by the board: Kaiser’s rate cards passed unanimously; Blue Shield’s rate cards were accepted; the UHC EGWP premium was approved unanimously.
Next steps: HSS staff will update formal rate schedules and member notices to reflect approved rates and the Kaiser benefit changes ahead of open enrollment.
