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 other plan options (e.g. Low Deductible and HMO’s) received a lower subsidy of 95%. Beginning November 1, 2009, the self-funded plan will be the base plan and the HMOs will continue to be considered to be non-base plans. The Board continued its practice of subsidizing the base plan at a higher level than the other plans. In determining the actual subsidy percentages for each plan option, the Board attempted to have as even as impact as possible while considering that most employees are enrolled in the Low Deductible self-funded plan. If the subsidy levels for dependents are included, the average subsidy was reduced from 89.9% to 85.7% for active employees.
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