Contracting Agencies: Region Assessment Board of Administration Offsite Liana Bailey-Crimmins, Chief Health Director Shari Little, Chief, HPRD Gary McCollum, Health Actuary Health Policy and Benefits Branch January 17, 2018 B OARD OF A DMINISTRATION O FFSITE J ANUARY 2018
Agenda • Background • History & Regional Objectives • Regional Factors & Premiums • Next Steps HEALTH CARE AFFORDABILITY Transform health care purchasing and delivery to achieve affordability B OARD OF A DMINISTRATION O FFSITE 2 J ANUARY 2018
Background Stakeholder Feedback Market Change Premium Variances B OARD OF A DMINISTRATION O FFSITE 3 J ANUARY 2018
Regional Rates Regions Regional Factor Rates B OARD OF A DMINISTRATION O FFSITE 4 J ANUARY 2018
Public Agency Regions San Francisco $1,371.84 (Bay Area) Nevada County $1,371.84 (Bay Area) 2018 Single-Party Premiums B OARD OF A DMINISTRATION O FFSITE 5 J ANUARY 2018
Regional Premium Volatility Over Time (example) Other Northern CA Region, Basic, Single Party Premium, HMO Plan $1,300 $1,205.55 $1,200 PA Premium Single-Party Premium State Premium $1,100 $1,000 $882.35 $900 $794.80 $800 $677.35 $700 $704.59 $686.17 $600 $642.40 $625.78 $500 2015 2016 2017 2018 Years B OARD OF A DMINISTRATION O FFSITE 6 J ANUARY 2018
Objectives For Establishing Regions Retain and Create Stable Reflect Cost of Attract Public Public Agency Health Care Agencies Risk Pools Regionally B OARD OF A DMINISTRATION O FFSITE 7 J ANUARY 2018
History 2003 2009 2014 2005 • Losing public • Established • Created fifth • Added Yolo agencies in four regions region for County to Southern CA Sacramento Sacramento region B OARD OF A DMINISTRATION O FFSITE 8 J ANUARY 2018
Challenges Premium Volatility Inequities (Perceived or Actual) Difficulties Attracting and Retaining Public Agencies B OARD OF A DMINISTRATION O FFSITE 9 J ANUARY 2018
Current Regions PPO B OARD OF A DMINISTRATION O FFSITE 10 J ANUARY 2018
State is a Single Region PPO B OARD OF A DMINISTRATION O FFSITE 11 J ANUARY 2018
Regional Factors – PPO and HMO HMO PPO Health Carrier CalPERS B OARD OF A DMINISTRATION O FFSITE 12 J ANUARY 2018
Establishing Regional Factors and Premiums PPO HMO HMO Regional State Health Carrier Premiums Premium Regional Factor = X B OARD OF A DMINISTRATION O FFSITE 13 J ANUARY 2018
2018 Timeline Market Analysis Present Options Industry Expert Initiate Board Present Board Decision Discussion, Stakeholder for 2020 Plan Year Stakeholder Feedback Outreach January July September November December B OARD OF A DMINISTRATION O FFSITE 14 J ANUARY 2018
Questions and Discussion B OARD OF A DMINISTRATION O FFSITE 15 J ANUARY 2018
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