Open Enrollment for health, dental and vision coverage started September 18 and ends October 13. 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, 2024.
Dental and vision premiums remain unchanged, but health premiums for calendar year 2024 will have an average increase of 10.77%. Basic Health Maintenance Organization health plans will increase by an average of 10.5% while Basic Preferred Provider Organization plans will see an average increase of 12.17%. The good news is that these increased premiums are accompanied by a significant increase in the state employer contribution for excluded employees.
The 2024 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 7 to 8 percent to $842 (Single)/$1624 (2-Party)/$2100 (Family).
The 2024 excluded employee “Family” employer contribution is an increase of $155 per month over the 2023 amount. With the increased employer CoBen contribution, some excluded employees will see a decrease in their employee contribution for the 2024 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 2024 CoBen amount for supervisors, managers, and confidential employees is $60 per month higher than the state employer contribution for many rank-and-file employees.
As announced earlier by ACSS, the “Health Affordability Payment” of $260 per month will resume with the December pay period (expected to be paid in early January 2024) for excluded employees related to the nine-SEIU Local 1000 represented bargaining units. CalHR has informed ACSS that this $260 per month will only be when eligible employees are enrolled in a CalPERS health plan.
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 “2024” and “Excluded Employee” before entering your options.
In light of the premium increases, 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.
If you are not making changes, no action is needed.