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Board committee delays vote on Health Service System 2014 package after intense public outcry over Kaiser increase
Summary
The subcommittee continued the Health Service System 2014 rates package after hours of testimony calling for Kaiser to disclose its rate methodology; staff warned rejecting the package could disrupt open enrollment and coverage for tens of thousands, and asked for authorizing the package as a whole or sending it back for a new actuarial package.
The Budget & Finance Subcommittee spent the second half of its July 10 meeting on the Health Service System (HSS) 2014 rates and benefits package, a contentious agenda item driven by a proposed Kaiser rate increase. Acting HSS Director Lisa Gautbe and HSS actuaries presented a 2014 package with an aggregate premium increase of 2.43% across four participating employers; she said the Affordable Care Act fees and taxes accounted for roughly $16.6 million of the total increase. Kaiser’s commercial rate was reported as a 5.22% increase while Blue Shield showed a modest aggregate increase and the city’s self‑insured City Plan showed a decline.
HSS staff and the city attorney explained the package must be accepted as an actuarially supported whole or returned to the HSS board for…
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