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Proposal to add three-tier 'Blue Choice' PPO could trim premiums 3–8%
Summary
Benefits staff proposed a three-tier PPO (preferred / broader PPO / out-of-network) similar to the HMO's Blue Advantage shift; preliminary estimates projected savings of roughly 3–8% with limited disruption for employees using preferred providers.
Nancy Bellosa described a proposed Blue Choice options network for the PPO that would create a three-tier structure—preferred, broader PPO, and out-of-network—rather than the current two-tier system. She said the design would be similar to the prior HMO transition to Blue Advantage and could produce estimated savings of 3–8% while keeping access to preferred providers for most employees.
Committee members asked staff to include the option in future modeling and to evaluate any potential member disruptions, provider impacts, and budgetary tradeoffs before recommending a change for a future renewal cycle.
