Board Committee Recommends Health Service System 2021 Rates, Citing Modest Increases and Plan-Specific Changes

The Budget & Appropriations Committee voted July 15 to approve technical amendments and forward to the full Board an ordinance approving Health Service System (HSS) plans and contribution rates for calendar year 2021.

Abby Yant, executive director of HSS, summarized the package and the charter metric commonly called the "10‑county average," which this year was reported as $729.19 (a 3.3% increase from the prior year). The HSS reported an aggregate projected cost increase of about 3.66% across all employers and plans; the city—s share (including retirees) was reported at roughly 3.7%.

Plan-by-plan highlights included a Kaiser HMO increase for actives and early retirees of 5.78% and large swings in some retiree Medicare products due to federal Medicare reconciliation processes. Blue Shield HMO products showed a combined aggregate increase of about 4.3% (Trio +6.3%, Access Plus +3.6%). UnitedHealthcare—s city PPO (the city plan) was reported to have a 9% increase for active employees and early retirees, largely attributed to plan experience and changes to rate‑stabilization reserves; its Medicare Advantage PPO product showed a 2.9% decrease (helped by the permanent termination of the ACA—s health insurance tax).

Yant also described plan enhancements for some retirees (e.g., Kaiser transportation benefit and home-meal benefit) and noted that HSS and Blue Shield have been working to resolve a pattern of fertility and pharmacy denials. She requested two non‑substantive corrections to ordinance dates, which the committee approved; the committee then voted to move the ordinance to the full Board with a positive recommendation.

Budget Analyst Office (BLA) staff noted the city—s estimated employer cost for the measures would be about $25.9 million. The committee recorded roll-call votes to approve the amendments and to forward the item to the full Board.