IMPORTANT MEDICAL INSURANCE ISSUES!
Meeting on August 16th to be rescheduled.
Attention all SCEA Members!
You may be aware that PERS has announced sweeping and dramatic changes in the PERS Medical Plan offerings for 2022.
In summary:
PERS Select is retitled PERS Gold and is increasing 23% for 2022 over what Select is now in 2021. If you are in Select now and don’t change plans in open enrollment you will be automatically enrolled in PERS Gold.
PERS Choice is eliminated. If you are in Choice now and don’t change plans in open enrollment you will be automatically enrolled in a new plan, PERS Platinum, that for 2022 will be 12% higher than Care is now in 2021.
PERS Care is eliminated. If you are in Care now and don’t change plans in open enrollment you will be automatically enrolled in a new plan, PERS Platinum, that for 2022 will be 18% lower than Care is now in 2021.
A new Plan, PERS Platinum is established. It has a 90/10 benefit level as compared to the current PERS Choice which is a 80/20 benefit level. PERS Care is already at a 90/10 benefit level.
A new Plan, an EPO (Exclusive Provider Option) has been announced by PERS to be available in Shasta County for 2022 but the details are not available other than it will be very expensive, over $1000/month for employee only. No provider network has been announced. This doesn’t appear at this time to be a helpful addition.
Our current medical formula that determines what the County pays for the plan you select is tied to PERS Choice. Being aware that some type of change was headed our way when we last negotiated, we put in a clause in the MOU that states we have the opportunity to attempt to negotiate a solution with the County in the event PERS Choice was to be eliminated. That event has now occurred. We have met twice with the County and have received a County proposal.
If we reach no agreement with the County, the current County contribution for medical will remain intact for 2022, until and unless an agreement is reached.
Attached for your review is the County’s proposal that we received this week. In short, it proposes a temporary commitment for 2022 that sets the County contribution equal to 100% of PERS Gold EE Only and 90% of PERS Gold for EE with dependents (both the EE +1 and the EE + Family rates). However, beginning in 2023 that formula would change to an ongoing calculation whereby the 2022 PERS Gold rates are the “base” County contribution and future increases, each year, are split 50/50. The means that the County contribution beginning in 2023 will increase 50% of the increase in PERS Gold premium rates for all three tiers, EE, EE + 1 and EE + Family. And so on for 2024, 2025, etc.
This is a complicated situation and affects both active employees and retirees. It deletes the formula we fought hard for in the last contract to set the County contribution at 85% of PERS Choice.
We need to craft a response to the County proposal and have decided to brainstorm with the UPEC Teams for the General and Professional Units next week to see if it is possible to come up with a reasonable joint position. Our thought is that they are in the same boat and it would be a stronger position if all three units approved the same proposal. If the Teams are successful we will each bring a draft proposal back to our respective membership bodies for discussion, editing if appropriate and voting to then submit to the County. If this approach doesn’t work we will of course disengage and go our separate ways.
For the above reasons we need to reschedule the meeting we set for Monday 8-16 as we are hopeful of having a draft proposal after collaborating with the other units next week. We will announce the new meeting date in the near future.
Please read the County’s proposal and stand by for a meeting announcement.
County CalPERS Health Proposal to SCEA
It will be important for all of you participate!
Sincerely,
Phillip Crawford
SCEA President