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Home My WebLink About04.c. Receive update on employee benefits for calendar year 2025Page 1 of 8 Item 4.c. F--1-448�411C-S0 September 3, 2024 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 2025 Staff will review the attached memo and Health Premiums for 2024 and 2025 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 2025 Health Premiums September 3, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 41 of 50 Page 2 of 8 VSKS CENTRAL CONTRA COSTA SANITARY DISTRICT September 3, 2024 TO: ADMINISTRATION COMMITTEE VIA: ROGER S. BAILEY, GENERAL MANAGER Attachment 1 FROM: TEJI O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL DEVELOPMENT MANAGER SUBJECT: RECEIVE UPDATE ON EMPLOYEE BENEFITS FOR CALENDAR YEAR 2025 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, 2025. 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 Group Medicare Advantage PPO. 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 2024, CalPERS adopted the final rate adjustments to be effective January 2025, as well as any other plan changes. The rate adjustments, both increases and decreases, will result in an overall average premium increase of 10.79% for all of their plans. On average, the health maintenance organization (HMO) plans will increase by an average of 8.72%, the preferred provider organization (PPO) plans will increase by an average of 9.82%, and the Medicare HMO and PPO plans will increase by an average of 22.55%. For reference, the Bay Area region (Region 1) premiums for 2024 and 2025 are enclosed. Central San's rate adjustments will result in an overall average premium increase of approximately 12.2% resulting in an annual cost increase of $1,333,371 from calendar year September 3, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 42 of 50 Administration Committee September 3, 2024 Page 2 of 4 Page 3 of 8 2024 ($10,912,292) to calendar year 2025 ($12,245,663). The District assumed a premium increase of 6.25% in the second half of FY 2024-25. This will result in an increase to the O&M budget of approximately $767,000. However, the actual cost impact may vary dependent on staff turnover or active employees/retirees switching plans during open enrollment this fall. The following chart shows current (calendar year 2024) medical monthly premium rates, the rate adjustments, and future (calendar year 2025) monthly premium rates for the core plans for active employees and retirees within the Bay Area region: Kaiser Permanente Anthem Blue Cross Traditional HMO Actives Current Monthly Premium Rates Adj. 2025 Monthly Premium Rates Current Monthly Premium Rates Adj. 2025 Monthly Premium Rates Single $1,021.41 8.96% $1,112.90 $1,339.70 12.00% $1,500.40 Dual $2,042.82 8.96% $2,225.80 $2,679.40 12.00% $3,000.80 Family $2,655.67 8.96% $2,893.54 $3,483.22 12.00% $3,901.04 Kaiser Senior Advanta a U n ited Healthcare Retirees Current Monthly Premium Rates Add 2025 Monthly Premium Rates Current Monthly Premium Rates Adj. 2025 Monthly Premium Rates Single $324.79 5.63% $343.08 $341.72 29.42% $442.25 Dual $649.58 5.63% $686.16 $683.44 29.42% $884.50 Family $974.37 5.63% $1,029.24 $1,025.16 29.42% $1,326.75 For reference, I have also included a current census of our active employees and retirees based on their plan selection in calendar year 2024. Active and Retirees, 543 Enrollees United Health Medicare Anthem Medicare 0 12%_ / % Athem HMO PERS Medicare \ 7% PERS Gold/Platinum 5% Kaiser Senior Advantage 19% 19 i 17% Blue Shield 2% Kaiser 37% September 3, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 43 of 50 Administration Committee September 3, 2024 Page 3 of 4 Page 4 of 8 ALL OTHER BENEFITS (NON -MEDICAL) Dental Coverage 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 3.40%. The District assumed a premium increase of 3.75% in the FY 2024-25 budget. Active Employees Retirees Current 2025 Current 2025 Monthly Ad.. Monthly Monthly Ad. Monthly Premium Premium Premium Premium Rates Rates Rates Rates Single $66.70 -3.40% $64.40 $65.20 -3.40% $63.00 Dual $117.40 -3.40% $113.40 $114.50 -3.40% $110.60 Family $186.40 -3.40% $180.10 $182.60 -3.40% $176.40 The District contracts with a joint powers authority (PRISM) to secure dental coverage benefits through Delta Dental. Since we are in a pool with many other employers, PRISM does distribute dividends, if any, left remaining in the employer funded pool. The table below represents the dividends the District has received since 2021 when we joined PRISM. Calendar Year Dividend Amount 2021 $176,067 2022 $48,403 2024 $131,040 U/t74C•7, 0711 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 a premium increase of 3.75% in the FY 2024-25 budget. Active Employees Retirees Current 2025 Current 2025 Monthly Add 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 September 3, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 44 of 50 Administration Committee September 3, 2024 Page 4 of 4 Page 5 of 8 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 rate increase. The District had assumed no premium increase in the FY 2024-25 budget. Voya Basic Life Voya AD&D Voya Dependent Life Current 2025 Current 2025 Current 2025 Monthly Monthly Monthly Monthly Monthly Monthly Premium Add' Premium Premium Add' Premium Premium Add' 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' 2025 Monthly Premium Rate Premium Rate $0.287 per $100 -3.80% $0.276 per $100 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 2024-25 budget. EAP Current Monthly 2024 Monthly Premium Rate Add' Premium Rate $3.72 0% $3.72 Open Enrollment will begin on September 16, 2024, and end on October 11, 2024. Staff will be available to answer any questions or provide clarification during the meeting. September 3, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 45 of 50 Attachment 2 CalPERS 2025 Regional Health Premiums (Actives and Annuitants) Effective Date: January 1, 2025 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, Yuba Plan Subscriber Plan Code Party Code Party Rate Subscriber & 1 Dependent Plan Code Party Code Party Rate Subscriber & 2+ Dependents Plan Code Party Code Party Rate Anthem Blue Cross Select HMO 1,256.65 506 1 1 2,513.30 506 2 2 3,267.29 506 3 3 Anthem Blue Cross Traditional HMO 1,500.40 509 1 1 3,000.80 509 2 2 3,901.04 509 3 3 Blue Shield Access+ HMO 1,170.17 525 1 1 2,340.34 525 2 2 3,042.44 525 3 3 Blue Shield Access+ EPO 1,170.17 524 1 1 2,340.34 524 2 2 3,042.44 524 3 3 Blue Shield Trio HMO 1,134.79 451 1 1 2,269.58 451 2 2 2,950.45 451 3 3 Kaiser Permanente 1,112.90 533 1 1 2,225.80 533 2 2 2,893.54 533 3 3 Peace Officers Research Assoc of CA 975.00 592 1 1 2,218.00 592 2 2 2,777.00 592 3 3 PIERS Gold 1,013.70 648 1 1 2,027.40 648 2 2 2,635.62 648 3 3 PIERS Platinum 1,476.10 657 1 1 2,952.20 657 2 2 3,837.86 657 3 3 UnitedHealthcare Signaturevalue Alliance 1,184.58 576 1 1 2,369.16 576 2 2 3,079.91 576 3 3 UnitedHealthcare SignatureValue Harmony 1,005.02 495 1 1 2,010.04 495 2 2 2,613.05 495 3 3 Western Health Advantage HMO 914.27 591 1 1 1,828.54 591 2 2 2,377.10 591 3 3 Plan Subscriber Plan Code Party Code Party Rate Subscriber & 1 Dependent Plan Code Party Code Party Rate Subscriber & 2+ Dependents Plan Code Party Code Party Rate Anthem Medicare Preferred PPO $487.56 515 1 4 $975.12 515 2 5 $1,462.68 515 3 6 Anthem Medicare Preferred PPO with Dental/Vision' 487.56 512 1 4 975.12 512 2 5 1,462.68 512 3 6 Anthem Medicare Preferred PPO 487.56 455 1 4 975.12 455 2 5 1,462.68 455 3 6 Anthem Medicare Preferred PPO with Dental/Vision1 487.56 459 1 4 975.12 459 2 5 1,462.68 459 3 6 Blue Shield Medicare PPO 448.28 011 1 4 896.56 011 2 5 1,344.84 011 3 6 Blue Shield Medicare PPO with Dental/Vision2 448.28 016 1 4 896.56 016 2 5 1,344.84 016 3 6 Kaiser Permanente Senior Advantage 343.08 536 1 4 686.16 536 2 5 1,029.24 536 3 6 Kaiser Permanente Senior Advantage with Dental3 343.08 542 1 4 686.16 542 2 5 1,029.24 542 3 6 Kaiser Permanente Senior Advantage Summit 408.31 630 1 4 816.62 630 2 5 1,224.93 630 3 6 Kaiser Permanente Senior Advantage Summit with Dental3 408.31 636 1 4 816.62 636 2 5 1,224.93 636 3 6 Peace Officers Research Assoc of CA Medicare Supplement 507.00 595 ag1 4 1,123.00 595 2 5 1,521.00 595 3 6 PIERS Gold Medicare Supplement 546.13 651 1 4 1,092.26 651 2 51 1,638.39 651 31 6 PIERS Platinum Medicare Supplement 584.70 661 1 4 1,169.40 661 2 5 1,754.10 661 3 6 UnitedHealthcare Group Medicare Advantage PPO 442.25 579 1 4 884.50 579 2 5 1,326.75 579 3 6 UnitedHealthcare Group Medicare Advantage PPO with Dental/Vision4 442.25 585 1 4 884.50 585 2 5 1,326.75 585 3 6 *For health plan availability by county, please refer to the 2025 Health Benefit Summary or myCalPERS. 'Dental and Vision coverage is an additional $38.00 per member per month premium. You will be billed directly for this amount. 2Dental and Vision coverage is an additional $39.14 per member per month premium. You will be billed directly for this amount. 3Dental benefit is an additional $15.97 per member per month premium. You will be billed directly for this amount. 4Dental and Vision coverage is an additional $29.54 per member per month premium. You will be billed directly for this amount. 3 CalPERS 2025 Regional Health Premiums (Actives and Annuitants) Effective Date: January 1, 2025 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, Yuba Subscriber in M, Subscriber in M, & Plan Party Party Subscriber in M, & Plan Party Party 1 Dependent in M, & Plan Party Party Plan 1 Dependent in B Code Code Rate 2+ Dependents in B Code Code Rate 1+ Dependent in B Code Code Rate Anthem Blue Cross Select HMO and Medicare Preferred 1,744.21 457 4 7 2,498.20 457 5 8 1,729.11 457 6 9 Anthem Blue Cross Select HMO and Medicare Preferred with 1,744.21 460 4 7 2,498.20 460 5 8 1,729.11 460 6 9 Dental/Vision1 Anthem Blue Cross Traditional HMO and Medicare Preferred 1,987.96 518 4 7 2,888.20 518 5 8 1,875.36 518 6 9 Anthem Blue Cross Traditional HMO and Medicare Preferred with 1,987.96 521 4 7 2,888.20 521 5 8 1,875.36 521 6 9 Dental/Vision' Blue Shield Access+ HMO and Medicare 1,618.45 049 4 7 2,320.55 049 5 8 1,598.66 049 6 9 Blue Shield Access+ HMO and Medicare with Dental/Vision2 1,618.45 089 4 7 2,320.55 089 5 8 1,598.66 089 6 9 Blue Shield Access+ EPO and Medicare 1,618.45 092 4 7 2,320.55 092 5 8 1,598.66 092 6 9 Blue Shield Access+ EPO and Medicare with Dental/Vision3 1,618.45 093 4 71 2,320.55 093 5 8 1,598.66 093 6 9 Blue Shield Trio HMO and Medicare 1,583.07 094 4 7 2,263.94 094 5 8 1,577.43 094 6 9 Blue Shield Trio HMO and Medicare with Dental/Vision4 1,583.07 097 4 7 2,263.94 097 5 8 1,577.43 097 6 9 Kaiser Permanente and Senior Advantage 1,455.98 539 4 7 2,123.72 539 5 8 1,353.90 539 6 9 Kaiser Permanente and Senior Advantage with Dental5 1,455.98 545 4 7 2,123.72 545 5 8 1,353.90 545 6 9 Kaiser Permanente and Senior Advantage Summit 1,521.21 633 4 7 2,188.95 633 5 8 1,484.36 633 6 9 Kaiser Permanente and Senior Advantage Summit with Dental5 1,521.21 639 4 7j 2,188.95 639 5 81 1,484.36 639 6j 9 Peace Officers Research Assoc of CA and Medicare Supplement 1,750.00 598 4 7 2,309.00 598 5 8 1,678.00 598 6 9 PIERS Gold and Medicare Supplement 1,559.83 654 4 7 2,168.05 654 5 8 1,700.48 654 6 9 PIERS Platinum and Medicare Supplement 2,060.80 665 4 7 2,946.46 665 5 8 2,055.06 665 6 9 UnitedHealthcare SignatureValue Alliance and Group Medicare 1,626.83 582 4 7 2,337.58 582 5 8 1,595.25 582 6 9 Advantage PPO UnitedHealthcare SignatureValue Alliance and Group Medicare 1,626.83 588 4 7 2,337.58 588 5 8 1,595.25 588 6 9 Advantage PPO with Dental/Vision6 UnitedHealthcare SignatureValue Harmony and Group Medicare 1,447.27 497 4 7 2,050.28 497 5 8 1,487.51 497 6 9 Advantage PPO UnitedHealthcare SignatureValue Harmony and Group Medicare 1,447.27 498 4 7 2,050.28 498 5 8 1,487.51 498 6 9 Advantage PPO with Dental/Vision6 CalPERS 2025 Regional Health Premiums (Actives and Annuitants) Effective Date: January 1, 2025 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, Yuba oil • IT 111,111 111111 Subscriber in B, Subscriber in B, & Plan Party Party Subscriber in B, & Plan Party Party 1 Dependent in M, & Plan Party Party Plan 1 Dependent in M Code Code Rate 2+ Dependents in M Code Code Rate 1+ Dependent in B Code Code Rate Anthem Blue Cross Select HMO and Medicare Preferred 1,744.21 457 7 10 2,231.77 457 8 11 2,498.20 457 9 12 Anthem Blue Cross Select HMO and Medicare Preferred with 1,744.21 460 7 10 2,231.77 460 8 11 2,498.20 460 9 12 Dental vision' Anthem Blue Cross Traditional HMO and Medicare Preferred 1,987.96 518 7 10 2,475.52 518 8 11 2,888.20 518 9 12 Anthem Blue Cross Traditional HMO and Medicare Preferred with 1,987.96 521 7 10 2,475.52 521 8 11 2,888.20 521 9 12 Dental/Vision' Blue Shield Access+ HMO and Medicare 1,618.45 049 7 10 2,066.73 049 8 11 2,320.55 049 9 12 Blue Shield Access+ HMO and Medicare with Dental/Vision2 1,618.45 089 7 10 2,066.73 089 8 11 2,320.55 089 9 12 Blue Shield Access+ EPO and Medicare 1,618.45 092 7 10 2,066.73 092 8 11 2,320.55 092 9 12 Blue Shield Access+ EPO and Medicare with Dental/Vision3 1,618.45 093 7 10 2,066.73 093 8 11 2,320.55 093 9 12 Blue Shield Trio HMO and Medicare 1,583.07 094 7 10 2,031.35 094 8 11 2,263.94 094 9 12 Blue Shield Trio HMO and Medicare with Dental/Vision4 1,583.07 097 7 10 2,031.35 097 8 11 2,263.94 097 9 12 Kaiser Permanente and Senior Advantage 1,455.98 539 7 10 1,799.06 539 8 11 2,123.72 539 9 12 Kaiser Permanente and Senior Advantage with Dental5 1,455.98 545 7 10 1,799.06 545 8 11 2,123.72 545 9 12 Kaiser Permanente and Senior Advantage Summit 1,521.21 633 7 10 1,929.52 633 8 11 2,188.95 633 9 12 Kaiser Permanente and Senior Advantage Summit with Dental5 1,521.21 639 7 10 1,929.52 639 8 11 2,188.95 639 9 12 Peace Officers Research Assoc of CA and Medicare Supplement 1,482.00 598 7 10 2,098.00 598 8 11 2,309.00 598 9 12 PIERS Gold and Medicare Supplement 1,559.83 654 7 10 2,105.96 654 8 11 2,168.05 654 9 12 PIERS Platinum and Medicare Supplement 2,060.80 665 7 10 2,645.50 665 8 11 2,946.46 665 9 12 UnitedHealthcare SignatureValue Alliance and Group Medicare 1,626.83 582 7 10 2,069.08 582 8 11 2,337.58 582 9 12 Advantage PPO UnitedHealthcare SignatureValue Alliance and Group Medicare 1,626.83 588 7 10 2,069.08 588 8 11 2,337.58 588 9 12 Advantage PPO with Dental/Vision UnitedHealthcare SignatureValue Harmony and Group Medicare 1,447.27 497 7 10 1,889.52 497 8 11 2,050.28 497 9 12 Advantage PPO UnitedHealthcare SignatureValue Harmony and Group Medicare 1,447.27 498 Pa 8 of 1� 1,889.52 498 8 11 2,050.28 498 9 7121 Advantage PPO with Dental/Vision6 Dental and Vision coverage is an additional $38.00 per member per month premium. You will be billed directly for this amount. 2Dental and Vision coverage is an additional $39.14 per member per month premium. You will be billed directly for this amount. 3Dental and Vision coverage is an additional $39.14 per member per month premium. You will be billed directly for this amount. 4Dental and Vision coverage is an additional $39.14 per member per month premium. You will be billed directly for this amount. 5Dental benefit is an additional $15.97 per member per month premium. You will be billed directly for this amount. 6Dental and Vision coverage is an additional $29.54per member per month premium. You will be billed directly for this amount. 5