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CalPERS Approves More Modest Health Insurance Rate Hikes Than Last Year
California Healthline

The California Public Employees’ Retirement System, one of the biggest health insurance buyers in the country, on Wednesday approved substantially lower premium hikes for its members in 2017 than they saw this year.

CalPERS members will see, on average, a 4.1 percent hike in HMO premiums, a 3.7 percent raise in PPO premiums and a 1 percent increase in premiums for commercially administered Medicare plans.

The increases are moderate compared with the agency’s average premium hikes of 7.2 percent for HMOs and 10.8 percent for PPOs in 2016. CalPERS cited high pharmacy costs as the reason behind last year’s steeper-than-usual increases.