​​

Health Care Premium Increase

​$23,782,000​​​​​​

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 2021-22 CSU budget plan includes $23.8 million to fund the base increase in employer-paid health care costs resulting from changes in premiums effective January 2021. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2016 through 2021:

Government Code Health Care Monthly Employer Contribution Rates​

​Eligible Dependents ​ ​2​016 ​​​2017 ​2​​018​ ​2019​ ​2​020​2021
​Five-Y​ear Increase ​
​​​ %​​​​​​ ​$​
​Employee Only
​$705
​$707
​$725
​$734
​$767
$798​
13.2%
​$93
​Employee + 1 dependent
$1,343
​$1,349
​$1,377
​$1,398
​$1,461
​$1,519
​13.1%
​$176
​Employee + 2 or more
$1,727​
​$1,727
​$1,766
​$1,788
​$1,868​$1,937
​12.2%
​​$210

 

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 $70 million.

Five-Year Increase in Health Care Costs

Calend​ar Year​
(Contract Period)​
Government Code Health​ 
(Employer-Paid Budget Increase)
CSU Annualized Health Care
Budget Increase​
2017
0.2%
912,000
2018
2.3%
12,029,000
2019
1.3%
7,304,000
​2020
4.5%​
​25,981,000
​2021
3.8%​
23,782,000​
5-Year Increase in CSU Health Care Cos​ts:
​$70,008,000

​ 

The 2021-22 budget request funds permanent base budget costs associated with January 2021 employer health care premium increases. The CSU must absorb approximately $12 million during 2020-21 to fund the one-time costs related to the January 2021 premium increases for the six-month period from January-June 2021.​