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San Francisco health board declines to consider Sutter Health HMO for 2017 after actuary warns of disruption
Summary
The Health Service System board voted not to consider Sutter Health Plus for the 2017 plan year and directed staff to defer further consideration, citing actuary concerns about member disruption and strong public opposition from labor groups.
The Health Service System Board voted this afternoon not to consider Sutter Health Plus as a City and County of San Francisco employee health plan for the 2017 plan year after an Aon Hewitt actuary recommended postponing action until more market information is available.
Aon Hewitt actuary Anil (identified in the record as Neil/Anil) Kosher told the board Sutter submitted three plan options and that, while the raw premium submissions were in some cases below current combined costs, the city faces substantial operational questions if it adds a Sutter-sponsored HMO. Kosher said roughly 23,182 active and early‑retiree members are affiliated with Sutter medical groups and about 13,442 members would be…
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