Kathy Loretz, interim administrator of the Public Employees’ Benefit Board, couldn’t be happier with the new rate increases for state employees and their dependents who number 132,969.
Overall, those rates only jumped by 2.6 percent starting next January, compared to the maximum 3.4 percent allowed by the Legislature.
Kaiser came in the highest, requesting a 4.41 percent hike, and currently insures 22,474 of PEBB’s members, compared to Providence, which offers a statewide plan whose rates are climbing by 3.9 percent and a choice plan, which is going up 3.3 percent. Providence has the bulk of PEBB”s membership – 105,883 lives.
AllCare CCO, based in Medford, offered no rate increase and currently has 1,575 members, while Trillium Community Health Plan’s rates are going up by 3.5 percent (90 members) and Moda Health, by 2.4 percent (2,947 members),
Rates are on the decline, Loretz said, because the health plans are gaining efficiencies, there’s increased shared responsibilities, more people and using preventive services and Mercer’s consultant fees came in lower, dropping to .13 percent.
“Mercer did most of its heavy lifting last year when we had an RFP last year,” Loretz said. “Our needs are much lower for 2016.”
Open enrollment for PEBB members gets underway in October for the 2016 calendar year.
In terms of dental care, Kaiser received a 7.7 percent increase, and, unlike other plans, doesn’t charge a copayment for office visits. Currently, it insures 13,961 members, while Moda Health, which has 96,098 members reduced its dental rates by 1.1 percent. Willamette Dental with 24,799 members did not request a rate change. VSP Vision Care received a 3.5 percent increase.
PEBB has requested a budget of $844,791,321 for health benefits and administrative expenditures from the Ways and Means Committee for 2015. Last year, it spent $808,958,511 on health benefits and $4,497,125 on administrative costs.
Diane can be reached at [email protected].
Comments
PEBB Decrease
Rick
Your point is well taken, however I think Kathy Loretz meant, by her comment about the rates that, overall, the premium increases by the insurance companies approved by PEBB's board were not only lower than last year but lower than anticipated.
Diane Lund-Muzikant
Editor
In three previous paragraphs, rate increases averaging 2.6% are described and detailed. In the fifth paragraph Kathy Loretz is quoted "Rates are on the decline, Loretz said, because the health plans are gaining efficiencies, there’s increased shared responsibilities, more people and using preventive services ".
What is it about employees of the State of Oregon who describe an increase as a decrease?
Rick Larson