Why is the proposed cut in subsidy more drastic for the HMO than for the PPO Plan?
The PEBP Board is still considering the final subsidy percentages for each plan option. Those decisions should be made at the December PEBP Board meeting. The differential between the self-funded plan and the HMO options helps protect the self-funded plan from adverse selection. This is important due to the State bearing 100% of the financial risk for the self-funded plan.
