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CalPERS board member fields retiree complaints over rising premiums and CVS pharmacy transition
Summary
Board member Yvonne Walker told a CalPERS stakeholder webinar the board will vote on preliminary premiums in July, as retirees pressed her on steep premium increases, denials of pharmacy prior authorizations after the Optum-to-CVS switch, and out-of-state coverage problems.
Yvonne Walker, a member of the California Public Employees Retirement System board, told retirees on a CalPERS stakeholder webinar that the board will review preliminary health‑care premium rates and vote on final rates at an off‑site meeting in July. "We got those this past Monday…and we'll be voting on them in July," Walker said.
The call quickly turned to complaints about this year’s premium increases and problems after the system’s pharmacy benefit manager switched to CVS. Multiple callers said costs had shifted to retirees and that CVS was denying prior authorizations for routine medications. One caller described levothyroxine and omega‑3 prescriptions being denied after the PBM change, adding, "I was made to go get new ones." Another caller said Blue Shield — the plan that replaced Blue Cross — had higher copays and repeated claim processing errors.
Walker acknowledged implementation problems and urged members to log issues with both CVS and CalPERS so the record shows how many cases occurred and how they were resolved. "Our team is still working with them, regularly," she said, asking members to "drop a line" to the CalPERS call center as well as contacting CVS representatives.
Several retirees said cost increases out of state were especially severe. One participant said premiums jumped by more than 13% last year and later by several hundred dollars monthly, adding that a 2% cost‑of‑living adjustment does not cover the rise in premiums.
Walker explained some limits on relief. She said certain retiree subsidies and negotiation levers are constrained by contract language and the tax code. "That's because of tax code," she said when describing why negotiated subsidies available to active employees were not available to retirees. She also repeated that the health‑care team negotiates plan terms and that members should raise issues during board public‑comment periods and on board calls.
The webinar did not include a formal rate announcement. Walker said final rate information will appear on the CalPERS website after the board review and that the next stakeholder call will be in July. The board’s decision on premiums will be the next formal milestone for members tracking potential increases.
