Contracting Agencies: Region Assessment

Liana Bailey-Crimmins, Chief Health Director

Shari Little, Chief, HPRD

Gary McCollum, Health ActuaryHealth Policy and Benefits Branch

January 17, 2018

Board of Administration Offsite

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Agenda

• Background

• History & Regional Objectives

• Regional Factors & Premiums

• Next StepsHEALTH CARE

AFFORDABILITY

Transform health care

purchasing and delivery

to achieve affordability

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Background

Stakeholder Feedback

Market Change

Premium Variances

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Rates

Regional FactorRegions

Regional Rates

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Public Agency Regions

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San Francisco $1,371.84

(Bay Area)

Nevada County $1,371.84

(Bay Area)

2018 Single-Party Premiums

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$677.35

$794.80

$882.35

$1,205.55

$642.40 $625.78

$686.17 $704.59

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

2015 2016 2017 2018

Sin

gle

-Pa

rty

Pre

miu

m

Years

PA Premium

State Premium

Other Northern CA Region, Basic, Single Party Premium, HMO Plan

Regional Premium Volatility Over Time (example)

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Objectives For Establishing Regions

Create Stable

Public Agency

Risk Pools

Retain and

Attract Public

Agencies

Reflect Cost of

Health Care

Regionally

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History

2003

• Losing public

agencies in

Southern CA

2009

• Created fifth

region for

Sacramento

2005

• Established

four regions

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2014

• Added Yolo

County to

Sacramento

region

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Challenges

Inequities (Perceived or Actual)

Premium Volatility

Difficulties Attracting and Retaining Public Agencies

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Current Regions

PPO

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State is a Single Region

PPO

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Regional Factors – PPO and HMO

PPO

CalPERS

HMO

Health Carrier

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Establishing Regional Factors and Premiums

PPO

HMO

Health Carrier

Regional Factor

State

Premium

HMO Regional

PremiumsX =

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2018 Timeline

January July September November December

Present Options

Initiate Board

Discussion,

Stakeholder

Outreach

Present

Stakeholder

Feedback

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Market Analysis

Industry Expert

Board Decision

for 2020 Plan Year

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Questions and Discussion

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