HomeMy WebLinkAbout03.a. Receive Update on Employee Benefits for Calendar Year 2024Page 1 of 8
Item 3.a.
F--1-448�411C-S0
September 5, 2023
TO: ADMINISTRATION COMMITTEE
FROM: TEJI O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL
DEVELOPMENT MANAGER
REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE UPDATE ON EMPLOYEE BENEFITS FOR CALENDAR YEAR
2024
Staff will review the attached memo and Health Premiums for 2023 and 2024 at the meeting.
Strategic Plan Tie -In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility
GOAL FIVE: Safety and Security
Strategy 1 - Reduce and eliminate risks of injury or illness
ATTACHMENTS:
1. Employee Benefits Memo
2. CalPERS 2023 and 2024 Health Premiums
September 5, 2023 Special ADMIN Committee Meeting Agenda Packet - Page 3 of 38
Page 2 of 8
Attachment 1
CENTRAL CONTRA COSTA
SANITARY DISTRICT
September 5, 2023
TO: ADMINISTRATION COMMITTEE
VIA: ROGER S. BAILEY, GENERAL MANAGER
FROM: TEJI OWALLEY, HUMAN RESOURCES AND ORGANIZATIONAL
DEVELOPMENT MANAGER
SUBJECT: RECEIVE UPDATE ON EMPLOYEE BENEFITS FOR CALENDAR YEAR 2024
This memo is to provide information to the Administration Committee and Board of Directors
regarding the changes to employee benefits due to the completion of benefit renewal
negotiations as well as the annual changes to the CalPERS premium rates.
All updated rates for Medical, Dental, and ancillary benefit coverage will go into effect on
January 1, 2024.
MEDICAL COVERAGE
Employees and retirees are eligible to choose any plan that is offered by CalPERS;
however, Central San will only pay 100 percent of the premium cost, up to the family rate, of
the "core plans". Retirees contribute towards any premium costs if required based upon
their tier at the time of retirement.
For active employees and non -Medicare eligible retirees, the core plans are Kaiser
Permanente and Anthem Blue Cross Traditional HMO. For Medicare -eligible retirees, the
core plans are Kaiser Senior Advantage and United Healthcare. If a more expensive plan is
chosen, the employee or retiree is required to pay the District the difference between the
highest cost core plan and the chosen plan.
In July of 2023, CalPERS adopted the final rate adjustments to be effective January 2024,
as well as any other plan changes. The rate adjustments, both increases and decreases,
will result in an overall average premium increase of 10.77% for all of their plans.
On average, the health maintenance organization (HMO) plans will increase by an average
of 10.50%, the preferred provider organization (PPO) plans will increase by an average of
12.17%, and the Medicare supplemental plans will increase by an average of 9.55%. For
reference, the Bay Area region (Region 1) premiums for 2023 and 2024 are enclosed.
September 5, 2023 Special ADMIN Committee Meeting Agenda Packet - Page 4 of 38
Administration Committee
September 5, 2023
Page 2 of 5
Page 3 of 8
Central San's rate adjustments will result in an overall average premium increase of
approximately 9% resulting in an annual cost increase of $869,491. During FY 2023-24,
only 6 months of these higher rates will be in effect, so the cost impact on January -July 2024 is
$434,745 compared to the 2023 rates now in effect. The District assumed a premium
increase of 6.5% in the second half of FY 2023-24, which would have resulted in $313,851 of
additional cost over the six month period from January -June 2024. However, the actual
variance will vary dependent on staff turnover or active employees/retirees switching plans
during open enrollment this fall.
The following chart shows current (up to December 31, 2023) medical monthly premium
rates, the rate adjustments, and future (calendar year 2024) monthly premium rates for the
core plans for active employees and retirees within the Bay Area region:
Kaiser
Anthem Blue Cross Traditional HMO
Actives
Current
Monthly
Premium
Rates
Adj.
2024
Monthly
Premium
Rates
Current
Monthly
Premium
Rates
Adj.
2024
Monthly
Premium
Rates
Single
$913.74
11.78%
$1,021.41
$1,210.71
10.65%
$1,339.70
Dual
$1,827.48
11.78%
$2,042.82
$2,421.42
10.65%
$2,679.40
Family
$2,375.72
11.78%
$2,655.87
$3,147.85
10.65%
$3,483.22
Kaiser Senior Advanta a
United Healthcare
Retirees
Current
Monthly
Premium
Rates
Add
2024
Monthly
Premium
Rates
Current
Monthly
Premium
Rates
Adj.
2024
Monthly
Premium
Rates
Single
$283.25
14.67%
$324.79
$299.68
14.03%
$341.72
Dual
$566.50
14.67%
$649.58
$599.36
14.03%
$683.44
Family
$849.75
14.67%
$974.37
$899.04
14.03%
$1,025.16
For reference, I have also included a current census of our active employees and retirees
based on their plan selection in calendar year 2023.
September 5, 2023 Special ADMIN Committee Meeting Agenda Packet - Page 5 of 38
Administration Committee
September 5, 2023
Page 3 of 5
Page 4 of 8
Employed: PERS
Gnld�l°latinurn, 17,
4%
Healthcare Plan Census_
271 Active Employees
Employed'
AnH..wnlRlnn�rp551
fictired,
AnihrmJBlueLro55 Healthcare Plan Census:
Medicare, 3, 2% 268 Retirees net1ie`!-
rAnthnm�Blue�rpss,
4,2%
Retired: Health net
Srtlaricare, 9, 5%
Heiired:
U nited Healthcare
Fmployed! Medicare, GG, 46%
Hoatthnei
ricare, 73, 27%
•• 24%
ALL OTHER BENEFITS (NON -MEDICAL)
Dental Coverage
Raiser, 29,
12%
1 Retired:?ERS
1w0WRIWtinym, 16,
10%
Dental coverage is provided through Delta Dental at no cost to the employees and their
dependents, and retirees may pay a portion based upon their tier at the time of retirement.
The premium rates will decrease by 3.30%, resulting in an annual cost savings of
approximately $18,827. The District assumed a premium increase of 3.80% in the
FY 2023-24 budget.
The District is a part of PRISM, a Joint Powers Authority (JPA), and we currently purchase our
Delta Dental insurance through them and as part of that participation, the District is eligible to
receive dividends. These dividends are as a result of surplus for those participants that
participate in the self -funded dental insurance, and to date we have received a total of
$224,471.40 from the surplus fund for calendar year 2021 and 2022. It is unknown at this time
if we will be eligible for further dividends but will provide that information to the Board every
year as part of the benefits renewal process.
Active Employees
Retirees
Current
2024
Current
2024
Monthly
Ad..
Monthly
Monthly
Ad.
Monthly
Premium
Premium
Premium
Premium
Rates
Rates
Rates
Rates
Single
$69.00
-3.30%
$66.70
$67.40
-3.30%
$65.20
Dual
$121.40
-3.30%
$117.40
$118.40
-3.30%
$114.50
Family
$192.80
-3.30%
$186.40
$188.90
-3.30%
$182.60
September 5, 2023 Special ADMIN Committee Meeting Agenda Packet - Page 6 of 38
Administration Committee
September 5, 2023
Page 4 of 5
Page 5 of 8
Vision Plan
A vision plan is provided through VSP at no cost to the employees and their dependents,
and retirees may pay a portion based upon their tier at the time of retirement. The premium
rates reflect no rate increase. The District assumed no premium increase in the FY 2023-24
budget.
Active Employees
Retirees
Current
2024
Current
2024
Monthly
Adj.
Monthly
Monthly
Add
Monthly
Premium
Premium
Premium
Premium
Rates
Rates
Rates
Rates
Single
$6.70
0%
$6.70
$7.70
0%
$7.70
Dual
$11.60
0%
$11.60
$13.60
0%
$13.60
Family
$17.70
0%
$17.70
$15.70
0%
$15.70
Basic Life, Accidental Death & Dismemberment (AD&D) and Long -Term Disability (LTD)
Coverage
Basic Life, AD&D, and LTD coverage is provided through Voya at no cost to Local One and
MS/CG members, as well as the Secretary of the District and the General Manager. The
Management Group and Unrepresented members pay for their Long -Term Disability
insurance premium. The premium rates reflect no changes to Life, AD&D, and Dependent
Life insurance and a 3.8% reduction to Long -Term Disability rates. The District had assumed
no premium increase in the FY 2023-24 budget.
Voya Basic Life
Voya AD&D
Voya Dependent Life
Current
2024
Current
2024
Current
2024
Monthly
Add'
Monthly
Monthly
'Qd�'
Monthly
Monthly
Add'
Monthly
Premium
Premium
Premium
Premium
Premium
Premium
Rate
Rate
Rate
Rate
Rate
Rate
$0.315 per
$0.315 per
$0.026 per
$0.026 per
$0.370
$0.370
$1,000
0%
$1,000
$1,000
0%
$1,000
per unit
0%
per unit
Voya LTD
Current Monthly
Add
2024 Monthly
Premium Rate
Premium Rate
$0.287 per $100
-3.80%
$0.276 per $100
September 5, 2023 Special ADMIN Committee Meeting Agenda Packet - Page 7 of 38
Administration Committee
September 5, 2023
Page 5 of 5
Page 6 of 8
Employee Assistance Program (EAP)
EAP coverage is provided through Concern at no cost to the employees and their
dependents. The premium rates reflect no rate increase. The District had assumed no
premium increase in the FY 2023-24 budget.
EAP
Current Monthly
2024 Monthly
Premium Rate
Add
Premium Rate
$3.72
0%
$3.72
Open Enrollment will begin on September 18, 2023, and end on October 13, 2023.
Staff will be available to answer any questions or provide clarification during the meeting.
September 5, 2023 Special ADMIN Committee Meeting Agenda Packet - Page 8 of 38
Updated 7/31/2023
Page 7of8
Statewide Premiums, Attachment 3, Page 1 of 2
July Board of Administration Offsite
Proposed Statewide 2024 Premiums Per Subscriber Per Month (PSPM)
One Risk Pool Three -Year Phase In with PPO Benefit Design Changes
Attachment 2
Basic Plans
2023
2024
Percent Change
Single
2-Party
Family
Single
2-Party
Family
Anthem Blue Cross Select HMO
$903.85
$1,807.70
$2,350.01
$925.57
$1,851.14
$2,406.48
2.40%
Anthem Blue Cross Traditional HMO
1,116.65
2,233.30
2,903.29
1,197.94
2,395.88
3,114.64
7.28%
Blue Shield Access+ HMO and EPO
842.61
1,685.22
2,190.79
892.49
1,784.98
2,320.47
5.92 %
Blue Shield Trio HMO
760.71
1,521.42
1,977.85
810.24
1,620.48
2,106.62
6.51%
Health Net Salud y Mas
631.89
1,263.78
1,642.91
656.96
1,313.92
1,708.10
3.97 %
Kaiser Permanente
852.68
1,705.36
2,216.97
964.15
1,928.301
2,506.79
13.07%
Kaiser Permanente Out of State
1,155.43
2,310.86
3,004.12
1,312.45
2,624.90
3,412.37
13.59%
Sharp Performance Plus
764.96
1,529.92
1,988.90
833.24
1,666.48
2,166.42
8.93%
United Healthcare SignatureValue Alliance
841.72
1,683.44
2,188.47
882.98
1,765.96
2,295.75
4.90%
UnitedHealthcare SignatureValue Harmony
722.28
1,444.56
1,877.93
763.70
1,527.40
1,985.62
5.73%
Western Health Advantage HMO
760.17
1,520.341
1,976.44
807.23
1,614.46
2,098.80
6.19%
Basic HMO Weighted Average
10.50%
Anthem EPO Del Norte
$1,083.89
$2,167.78
$2,818.11
$1,215.87
$2,431.74
$3,161.26
12.18%
PERS Gold
766.11
1,532.22
1,991.89
859.31
1,718.62
2,234.21
12.17%
PERS Platinum
1,083.89
2,167.78
2,818.11
1,215.87
2,431.74
3,161.26
12.18%
Basic PPO Weighted Average
12.17%
Total Basic Percent Change
Medicare Plans
2023
2024
Percent Change
Single
2-Party
Family
Single
2-Party
Family
Anthem Medicare Preferred PPO
$413.59
$827.18
$1,240.77
$405.83
$811.66
$1,217.49
(1.88%)
Blue Shield Medicare PPO
361.90
723.80
1,085.70
392.68
785.36
1,178.04
8.51
Kaiser Permanente Senior Advantage
283.25
566.50
849.75
324.79
649.58
974.37
14.67%
Kaiser Permanente Senior Advantage Summit
336.29
672.58
1,008.87
386.55
773.10
1,159.65
14.95%
Kaiser Permanente Senior Advantage Out of State
274.03
548.06
822.09
318.43
636.86
955.29
16.20%
Kaiser Permanente Senior Advantage Summit Out of State
N/A
N/A
N/A
380.211
760.42
1,140.63
N/A
Sharp Direct Advantage HMO
249.79
499.58
749.37
256.53
513.06
769.59
2.70%
UnitedHealthcare Group Medicare Advantage PPO
299.68
599.36
899.04
341.72
683.44
1,025.16
14.03%
UnitedHealthcare Group Medicare Advantage Edge PPO
357.70
715.40
1,073.10
366.01
732.02
1,098.03
2.32%
Western Health Advantage MyCare Select HMO
331.11
662.22
993.33
268.62
537.24
805.86
(18.87%)
Medicare Advantage Weighted Average
13.17%
PERS Gold
$392.71
$785.42
$1,178.13
$406.60
$813.20
$1,219.80
3.54%
PERS Platinum
420.02
840.04
1,260.06
448.15
896.30
1,344.451
6.70%
Medicare Supplement Weighted Average
I
I
I
I
1
1 6.62 %
Total Medicare Percentage Change
Combination Plans
2024
Subscriber in M &
1 Dependent in B
Subscriber in M &
2a Depend- in B
Subscriber in M,
1 Dependent in B &
1 Dependent in M
Subscriber in B &
1 Dependent in M
Subscriber in B &
2+Depend- in M
Subscriber in B,
1 Depend.. in B &
1 Dependent in M
Anthem Blue Cross Select and Medicare Supplement
$1,331.40
$1,886.74
$1,367.00
$1,331.40
$1,737.23
$1,886.74
Anthem Blue Cross Traditional and Medicare Supplement
1,603.77
2,322.53
1,530.42
1,603.77
2,009.60
2,322.53
Blue Shield Access+ and Medicare
1,285.17
1,820.66
1,320.85
1,285.17
1,677.85
1,820.66
Blue Shield Trio and Medicare
1,202.92
1,689.06
1,271.50
1,202.92
1,595.60
1,689.06
Kaiser Permanente and Senior Advantage
1,288.94
1,867.43
1,228.07
1,288.94
1,613.73
1,867.43
Kaiser Permanente and Senior Advantage Summit
1,350.70
1,929.19
1,351.59
1,350.70
1,737.25
1,929.19
Kaiser Permanente and Senior Advantage Out of State
1,630.88
2,418.35
1,424.33
1,630.88
1,949.31
2,418.35
Kaiser Permanente and Senior Advantage Summit Out of State
1,692.66
2,480.13
1,547.89
1,692.66
2,072.87
2,480.13
PERS Gold and Medicare Supplement
1,265.91
1,781.50
1,328.79
1,265.91
1,672.51
1,781.50
PERS Platinum and Medicare Supplement
1,664.02
2,393.54
1,625.82
1,664.02
2,112.17
2,393.54
Sharp Direct Advantage
1,089.77
1,589.71
1,013.00
1,089.771
1,346.30
1,589.71
UnitedHealthcare Alliance and Medicare Advantage
1,224.70
1,754.49
1,213.23
1,224.70
1,566.42
1,754.49
UnitedHealthcare Alliance and Medicare Advantage Edge
1,248.99
1,778.78
1,261.81
1,248.99
1,615.00
1,778.78
UnitedHealthcare Harmony and Medicare Advantage
1,105.42
1,563.64
1,141.66
1,105.42
1,447.14
1,563.64
UnitedHealthcare Harmony and Medicare Advantage Edge
1,129.71
1,587.93
1,190.24
1,129.71
1,495.72
1,587.93
Western Health Advantage and Medicare Advantage
1,075.85
1,560.19
1,021.58
1,075.85
1,344.47
1,560.19
9.55%
September 5, 2023 Special ADMIN Committee Meeting Agenda Packet - Page 9 of 38
Updated 7/31/2023
Page 8 of 8
Regional Premiums, Attachment 3, Page 2 of 2
July Board of Administration Offsite
Proposed Regional 2024 Premiums Per Subscriber Per Month (PSPM)
One Risk Pool Three -Year Phase In with PPO Benefit Design Changes
Basic Plans
2023
2024
Percent Chan e
Single I 2-Party I Family
I Single I 2-Party I Family
Basic Premiums - Region 1
Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Marin, Mariposa,
Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San Francisco, San Joaquin, San Mateo,
Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tuolumne, Yolo and Yuba
Anthem Blue Cross Select HMO
$1,128.83
$2,257.66
$2,934.96
$1,138.86
$2,277.72
$2,961.04
0.89%
Anthem Blue Cross Traditional HMO
1,210.71
2,421.42
3,147.85
1,339.70
2,679.40
3,483.22
10.65%
Anthem EPO Del Norte
1,200.12
2,400.24
3,120.31
1,314.27
2,628.54
3,417.10
9.51%
Blue Shield Access+ HMO and EPO
1,035.21
2,070.42
2,691.55
1,076.84
2,153.68
2,799.78
4.02%
Blue Shield Trio HMO
888.94
1,777.88
2,311.24
946.84
1,893.68
2,461.78
6.51%
Kaiser Permanente
913.74
1,827.48
2,375.72
1,021.41
2,042.82
2,655.67
11.78%
PERS Gold
825.61
1,651.22
2,146.59
914.82
1,829.64
2,378.53
10.81%
PERS Platinum
1,200.12
2,400.24
3,120.31
1,314.27
2,628.54
3,417.10
9.51%
UnitedHealthcare SignatureValue Alliance
1,044.07
2,088.14
2,714.58
1,091.13
2,182.26
2,836.94
4.51%
UnitedHealthcare SignatureValue Harmony
N/A
N/A
N/A
937.39
1,874.78
2,437.21
N/A
Western Health Advantage HMO
760.171
1,520.34
1,976.44
807.23
1,614.46
2,098.80
6.19%
Basic Premiums - Region 2
Fresno, Imperial, Inyo, Kern, Kings, Madera, Orange, San Diego, San Luis Obispo, Santa Barbara, Tulare and Ventura
Anthem Blue Cross Select HMO
$765.37
$1,530.74
$1,989.96
$807.71
$1,615.42
$2,100.05
5.53%
Anthem Blue Cross Traditional HMO
935.12
1,870.24
2,431.31
1,034.38
2,068.76
2,689.39
10.61%
Blue Shield Access+ HMO and EPO
842.61
1,685.22
2,190.79
869.14
1,738.28
2,259.76
3.15%
Blue Shield Trio HMO
760.71
1,521.42
1,977.85
810.24
1,620.48
2,106.62
6.51%
Health Net Salud y Mas
698.91
1,397.82
1,817.17
684.77
1,369.54
1,780.40
(2.02%)
Kaiser Permanente
756.21
1,512.42
1,966.15
904.95
1,809.90
2,352.87
19.67%
PERS Gold
695.93
1,391.86
1,809.42
799.44
1,598.88
2,078.54
14.87%
PERS Platinum
1,014.80
2,029.60
2,638.48
1,151.50
2,303.00
2,993.90
13.47%
Sharp Performance Plus
764.96
1,529.92
1,988.90
833.24
1,666.48
2,166.42
8.93%
UnitedHealthcare SignatureValue Alliance
793.63
1,587.26
2,063.44
837.88
1,675.76
2,178.49
5.58%
UnitedHealthcare SignatureValue Harmony
781.581
1,563.161
2,032.111
792.65
1,585.30
2,060.89
1.42%
Basic Premiums - Region 3
Los Angeles, Riverside and San Bernardino
Anthem Blue Cross Select HMO
$737.91
$1,475.82
$1,918.57
$841.13
$1,682.26
$2,186.94
13.99%
Anthem Blue Cross Traditional HMO
942.73
1,885.46
2,451.10
1,012.67
2,025.34
2,632.94
7.42%
Blue Shield Access+ HMO
738.29
1,476.58
1,919.55
756.65
1,513.30
1,967.29
2.49%
Blue Shield Trio HMO
661.49
1,322.98
1,719.87
704.69
1,409.38
1,832.19
6.53%
Health Net Salud y Mas
606.34
1,212.68
1,576.48
630.13
1,260.26
1,638.34
3.92%
Kaiser Permanente
754.64
1,509.28
1,962.06
865.41
1,730.82
2,250.07
14.68%
PERS Gold
680.37
1,360.74
1,768.96
785.28
1,570.56
2,041.73
15.42%
PERS Platinum
992.59
1,985.18
2,580.73
1,131.47
2,262.94
2,941.82
13.99%
UnitedHealthcare SignatureValue Alliance
790.46
1,580.92
2,055.20
826.44
1,652.88
2,148.74
4.55%
UnitedHealthcare SignatureValue Harmony
713.551
1,427.101
1,855.231
734.76
1,469.52
1,910.38
2.97%
Basic Premiums - Out of State
Kaiser Permanente Out of State
1 $1,155.431
$2,310.86
$3,004.121
$1,312.451
$2,624.901
$3,412.371
13.59%
PERS Platinum
1 1,003.901
2,007.801
2,610.141
1,146.861
2,293.721
2,981.841
14.24%
September 5, 2023 Special ADMIN Committee Meeting Agenda Packet - Page 10 of 38