PY 2010 Rates Why do the state active employee HMO participant shares go up so much more than those fo the self-funded PPO?
The increase in participant shares are caused by a combination of decreases in state subsidies and increases in overall costs. In addition, collapsing the self-funded option into one deductible level, makes this hard to show as a direct comparison to the previous year. For simplicity, the new self-funded PPO rates are compared to the Low Deductible option. Variations in subsidies provided to participants of different plans are the result fo the Board’s decisions to meet the target budget reductions. On the cost side, HMO’s increased at a slightly higher rate than did the self-funded plan (the self-funded benefit reductions were more significant than for the HMO’s). Why did the subsidy for active employees on the HMO plans decrease to 85% while the subsidy for active employees on the plan decrease to 94%? PEBP has had a “base plan” and some “non-base plans” for several years. In the past, the base plan was defined as the High Deductible option and it received 100% subsidization. The oth
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