Open Enrollment for health, dental and vision opens September 16 and ends October 11. 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, 2025.
Dental and vision premiums remain roughly the same (decreasing by a few dollars), but health premiums for calendar year 2025 will have an average increase of 10.79%. Basic Health Maintenance Organization health plans will increase by an average of 8.72% while Basic Preferred Provider Organization plans will see an average increase of 9.82%. The good news is that these increased premiums are accompanied by a significant increase in the state employer contribution for excluded employees.
The 2025 employer contribution through the Consolidated Benefits (CoBen) allowance to be used for health, dental and vision benefits effective January 1, 2025 will increase by nearly 8 percent to $907 (Single)/$1750 (2-Party)/$2262 (Family).
The 2025 excluded employee “Family” employer contribution is an increase of $162 per month over the 2024 amount. With the increased employer CoBen contribution, some excluded employees will see a decrease in their employee contribution for the 2025 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 2025 CoBen amount for supervisors, managers, and confidential employees is $60 per month higher than the state employer contribution for many rank-and-file employees.
Excluded employees related to the nine-SEIU Local 1000 represented bargaining units will continue to receive the “Health Affordability Payment” of $260 per month when 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 “2025” 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 health plan search tool that allows you to search plan availability and compare premium rates based on your zip code. Visit the CalPERS website.
If you do not plan on making changes to your current plan, no action is needed on your part.