$7,304,000
The California Public Employees' Retirement System (CalPERS) administers CSU employee health care benefits. Health care premiums are shared between the CSU and its employees, with the CSU funding a significant portion of the costs. The 2019-20 CSU budget plan includes $7.3 million to fund the base increase in employer-paid health care costs resulting from changes in premiums effective January 2019. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2014 through 2019:
Government Code Health Care Monthly Employer Contribution Rates
|
% |
$ |
| Employee Only | $642 | $655 | $707
| $707 | $725 | $734 | 14.3%
| $92
|
| Employee + 1 dependent | $1,218 | $1,246 | $1,343
| $1,349 | $1,377 | $1,398
| 14.8% | $180
|
| Employee + 2 or more | $1,559 | $1,605 | $1,727 | $1,727 | $1,766 | $1,788
| 14.7% | $229
|
The CSU is governed by Government Code Section 22871 that defines the way employer-paid health care contribution rates are calculated. Either through policy or collective bargaining agreement, the CSU covers health care costs for represented and non-represented employees up to an amount equivalent to the established Government Code rates, with the exception of Unit 6 (Skilled Crafts), which bargained for CSU employer health contribution rates slightly above Government Code rates.
The total increase in CSU health care costs due to contribution changes during this five-year period is more than $66 million.
Five-Year Increase in Health Care Costs
| 2015 | 2.6% | 11,040,000 |
| 2016 | 7.7% | 35,080,000 |
| 2017 | 0.2% | 912,000 |
2018
| 2.3% | 12,029,000 |
2019
| 1.3% | $7,304,000 |
The 2019-20 budget request funds permanent base budget costs associated with January 2019 employer health care premium increases. The CSU must absorb approximately $3.7 million during 2018-19 to fund the one-time costs related to the January 2019 premium increases for the six-month period from January-June 2019.