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HSS board adopts 10‑county survey, renews VSP plan and again declines stop‑loss insurance
Summary
At its Feb. 13 meeting the Health Service System Board approved the annual 10‑county survey, reapproved a two‑year VSP vision fee structure and voted not to buy stop‑loss insurance, with staff citing contingency reserves and unfavorable premium‑to‑rebate math.
The Health Service System Board on Feb. 13 approved a set of rates‑and‑benefits recommendations that will guide 2015 plan year contributions.
Gabriel Briggs of Aon Hewitt told the Board the 10‑county survey — which benchmarks employer contributions across the ten most populous California counties (excluding San Francisco) — produced an average monthly employer contribution of $567.80 for plan year 2015, a 1.46 percent uptick from the prior calculation. He attributed the modest increase to a mix of counties trimming plan offerings and introducing higher‑deductible, lower‑cost options.
The Board voted to accept the 10‑county survey after a brief discussion and public comment from former commissioner Claire Zvansky, who called the pattern cyclical and pointed to historical population and bargaining shifts in Fresno and Riverside that have driven prior changes.
On a separate vote, the Board reapproved the VSP (vision) continuing fee proposal for 2015. Aon Hewitt staff said the VSP presentation reflects a two‑year rate guarantee and published tiered fees (for example, an E‑only tier shown as $3.99 per employee per month). The motion to adopt the VSP continuing fee proposal passed unanimously.
The Board also considered purchasing stop‑loss insurance. Aon Hewitt presented multiple UnitedHealthcare quotes and an analysis showing that, for the City Plan experience period analyzed, premium costs at commonly quoted deductible levels would exceed expected reimbursements. "Aon Hewitt's recommendation is to not purchase stop loss insurance again this year," the presenter said, noting the trust holds a contingency reserve (cited in the packet) that could absorb catastrophic claims. The Board moved, seconded and voted unanimously not to purchase stop‑loss coverage for the 2015 plan year.
Next steps: staff will use the adopted 10‑county survey results and the rate approvals as inputs to final rate setting for the trust's 2015 plans.
