The Sacramento Bee reports that trustees for the California Public Employees’ Retirement System have been advised by a state board pension consultant that higher co-pays would reduce premiums and keep the health program competitive.
In making the case for 1.2 million state and local government employees and retirees to shoulder a greater share of their health care costs, Milliman Inc. told trustees for the California Public Employees' Retirement System that higher co-pays would reduce premiums and keep the massive health benefits program competitive. The consultant did not estimate savings, however.
The Milliman analysts said steeper fees for physician visits, hospital stays, prescription drugs, emergency room care and other medical services would fall in line with co-payments imposed by large employers across California and the nation.
CalPERS is revisiting the issue as it negotiates next year's rates with its health plans, including health maintenance organizations Kaiser Permanente, Blue Shield of California and Western Health Advantage.