Open Enrollment for health, dental and vision coverage starts September 19 and ends October 14. This is your opportunity to evaluate your health care selections and make any changes to your health, dental or vision plans and add or drop dependents effective January 1, 2023.
Dental and vision premiums remain unchanged, with the exception of an increase of less than $2 per month for Delta Care USA.
Health premiums for calendar year 2023 are increasing by an overall average of 6.75%. Basic Health Maintenance Organization health plans will increase by an average of 4.35% while Basic Preferred Provider Organization plans will see an average increase of 15.76%. The good news is that these increased premiums are accompanied by a significant increase in the state employer contribution for excluded employees.
The 2023 employer contribution through the Consolidated Benefits (CoBen) allowance to be used for health, dental and vision benefits effective January 1, 2023 will increase by approximately 5.5 or 6 percent to $780 (Single)/$1515 (2-Party)/$1945 (Family). The 2023 excluded employee “Family” employer contribution is an increase of $100 per month over the 2022 amount. With the increased employer CoBen contribution, some excluded employees will see a decrease in their employee contribution for the 2023 calendar year, depending on their health plan enrollment. Other employees with double-digit health premium increases will see their out of pocket costs rise, despite the increased employer contribution.
The employer contribution is calculated based on the weighted average premium of the four largest enrolled health plans. The new 2023 CoBen amount for supervisors, managers, and confidential employees is $57 per month higher than the state employer contribution for most rank-and-file employees.
CalHR has updated the “Benefits Calculator” portion of the CalHR website for comparison of plan costs and calculating your exact out of pocket costs, or your CoBen cash back if your selections are lower than the CoBen Allowance. Visit the CalHR Benefits calculator and select “2023” and “Excluded Employee” before entering your options.
With the expansion of certain health plans into 18 new counties, it is a good time to explore different health plan options. CalPERS has a tool that allows you to search plan availability and premium rates based on your zip code. Visit the CalPERS website.
Be on the lookout for Open Enrollment forms from your department. If you are not making changes, no action is needed.