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Open enrollment is underway for California state workers as they decide which benefits to go with.
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Employees can select health plans through Oct. 9 on their myCalPERS account. Those who do not make a new selection will continue on the same plan. Any changes will take effect Jan. 1.
“If (members) happen to miss the open enrollment period, then they would need to wait for a qualifying event to make a plan change,” said Yesenia Crost, CalPERS’ division chief for health account management.
Qualifying events can include marriage, a new child and aging out of dependent eligibility.
Medicare health plans saw a rate increase of roughly 0.5%. The basic health plans, often used by active state workers younger than 65 years old, went up 5.78%. With all plans combined, the California Public Employees’ Retirement System reported the average rate increase for all plans is 4.97%. Comparatively, the agency said the national average increase is around 9%.
The 4.97% increase is greater than the increased annual employer contribution rate of 3% to 4% depending on the bargaining unit, according to CalPERS Division Chief of Health Plan Research and Administration Rob Jarzombek.
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While the increased employer contribution may not cover the total rate increase, Jarzombek said CalPERS tries to negotiate prices with health plans to keep rates down. That resulted in CalPERS dropping two basic HMO plans by UnitedHealthcare.
UnitedHealthcare’s 2027 proposed rate increases for the Harmony and Alliance plans were 21% and 23%, respectively. Those plans covered about 94,000 members.
CalPERS estimates didn’t expect an increase, according to Jarzombek, so it went with the Sutter Health Plan instead.
“This is what we’re showing and they were unable to justify why they were so much higher,” Jarzombek said.
The shift helped contribute to CalPERS’ recent attempts to limit rate increases.
Year-to-year rates increased by a 10.79% average for 2025 plans, 8.21% average for 2026 and now 4.97% average for 2027.
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