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Board approves 2016 rate cards for vision (VSP), Kaiser and Blue Shield plans
Summary
The board approved 2016 rate cards and employer/employee contribution schedules for VSP vision, Kaiser HMO and Blue Shield Flex Funded plans; presenters said increases were driven by claims trends, drug costs and an ACA tax impact for vision.
The Health Services Board approved several insurer‑proposed rate cards and contribution schedules for the 2016 plan year.
Aon Hewitt’s Anil Kosher presented and the board approved a one‑year extension with VSP and a 1% rate increase to help VSP cover ACA‑related taxes. "When I spoke with the VSP, they presently run at a 99% loss ratio," Kosher said, explaining the recommended adjustment.
For Kaiser Permanente, Kosher said the insurer provided a minus‑2% renewal for plan year 2015 that carried through the 24‑month rate and that little change was required for 2016 besides the vision adjustment. The board moved, seconded and approved the Kaiser premium contributions for actives and early retirees.
Blue Shield Flex Funded non‑Medicare rates were presented with an overall increase of about 11.5% for the Blue Shield member base, driven by higher claims and drug expense after two years of flat rates. Kosher and staff reviewed contribution algorithms (including the $196.83 and $93.93 references) and the board received public comment from retiree representatives concerned about affordability for early retirees and families; after discussion the Board approved the Blue Shield rate cards as presented.
Board members asked staff to continue work with vendors to reduce volatility and to monitor impacts on early retirees and family coverage. Staff said footnotes and standard rate cards would be filed into PeopleSoft for implementation.
