$78,361,000
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 2024-25 CSU budget plan includes $78.4 million to fund the base increase in employer-paid health care costs resulting from changes in premiums effective January 2024. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2019 through 2024:
Government Code Health Care Monthly Employer Contribution Rates
| Employee Only | $734 | $767 | $798 | $816 | $883 | $983 | 33.9% | $249 |
| Employee + 1 dependent | $1,398 | $1,461 | $1,519 | $1,548 | $1,699 | $1,890 | 35.2% | $492 |
| Employee + 2 or more | $1,788 |
$1,868 | $1,937 | $1,983 | $2,124 | $2,366 | 32.3% | $578 |
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 $192.6 million.
Five-Year Increase in Health Care Costs
| 2020 | 4.5% | 25,981,000 |
| 2021 | 3.8% | 23,782,000 |
| 2022 | 2.2% | $13,962,000 |
| 2023 | 8.0% | $50,524,000 |
| 2024 | 11.3% | $78,361,000 |
The 2024-25 budget request funds permanent base budget costs associated with January 2024 employer health care premium increases. The CSU must absorb approximately $39.2 million during 2023-24 to fund the one-time costs related to the January 2024 premium increases for the six-month period from January-June 2024.