CalPERS Launches Open Enrollment for 2003 Health Program.

Business Editors/Health & Medical Writers

SACRAMENTO, Calif.--(BUSINESS WIRE)--Sept. 3, 2002

The California Public Employees' Retirement System (CalPERS) today activated its annual open enrollment period for the 2003 health program.

Members have six weeks through October 18 to respond to health program changes and to choose new plans.

If they do not make a change during open enrollment and their current plan is available, they will be automatically continued in the plan for another year. If their health plan will not be available in 2003 and they do not choose another plan, members will be automatically enrolled in Blue Shield or PERS Choice, depending on where they live.

The CalPERS open enrollment packet mailed to members' homes in late August has the details about premium rates, health plans, geographical coverage areas, and benefits.

Fewer plans will be available in 2003, but co-payments and benefit designs will remain the same.

Blue Shield of California and Kaiser Permanente will offer health maintenance organization (HMO) coverage to members in 2003. Western Health Advantage, a small regional HMO, will continue as a CalPERS partner in 2003 but won't be open to new CalPERS members.

PERSCare and PERS Choice, CalPERS two self-funded preferred provider organizations (PPOs), also will be available. Three other plans will offer coverage to public safety officers of the California Association of Highway Patrolmen (CAHP), California Correctional Peace Officers Association (CCPOA), and Peace Officers Research Association of California (PORAC).

Four HMOs that currently are serving CalPERS members won't be in the 2003 lineup: Health Net, Health Plan of the Redwoods, PacifiCare, and Universal Care. Members who currently are with one of these HMOs must join another health plan for 2003.

To make the transition as smooth as possible, they will be automatically enrolled in Blue Shield if it's in their service area and they don't choose another plan during open enrollment. In that case, they don't need to make a health plan selection.

Members of discontinued plans who choose Blue Shield have a good chance of retaining their current primary care doctor since 90 percent of the physicians with those plans also contract with Blue Shield.

CalPERS members who will be moving to Blue Shield for 2003 must notify Blue Shield as early as possible, and no later than October 18, of their choice of a personal physician for themselves and for each dependent.

Retirees with PacifiCare of Arizona and Nevada and members of outgoing California plans who don't have other CalPERS HMOs in their areas will be automatically enrolled in PERS Choice -- unless they choose PERSCare or an association plan during open enrollment.

Beginning January 1, 2003, premiums will go up an average of about 26 percent for Basic HMO plans, 22 percent for PERSCare, and 19 percent for PERS Choice.

Medicare plan premiums will go up by an average of 41 percent for HMOs, about 6 percent for PERSCare, and 5 percent for PERS Choice. Rates for association plans will increase an average of 21 percent for Basic and 19 percent for Medicare plans.

The share of premiums to be paid by active employees depends on the employer contribution determined by collective bargaining. Employees can check with their personnel office to determine how state and public agency deductions will be affected by the new rates that begin January 1, 2003.

For state retirees, the monthly contribution in 2003 will be $288 for single-party coverage, $537 for two-party, and $665 for family. Public agency employees and retirees can contact their employers for information about the employer contribution.

CalPERS is the nation's second largest purchaser of public employee health care after the federal government. It purchases health coverage for 1.2 million active and retired state and public agency employees and their dependents. For more information on CalPERS, visit the System's Web site at www.calpers.ca.gov.