We’re demanding a say in our health care costs
“CalPERS must bring transparency and increased competition to the process”
Skyrocketing health insurance premiums are drastically cutting the money available for wage increases, and Local 1000 is pressing CalPERS to do something about it.
Why CalPERS? State law mandates that all state employees must participate in CalPERS-brokered health insurance plans, and many question the amount of competition in the CalPERS process.
“Every year, CalPERS staff negotiates behind closed doors with insurers to set rates for our health care premiums,” said Yvonne Walker, Local 1000 vice president for bargaining. “This process of hidden negotiations must end.”
On April 22, Local 1000 testified before the CalPERS Health Benefits Committee to demand that they bring unions into negotiations with insurers and provide the information needed so unions can help pressure health insurance companies to hold down premium costs.
“First and foremost, CalPERS must bring transparency and increased competition to the process,” said Jim Hard, Local 1000 president. “To accomplish this, CalPERS cannot be allowed to exclude employees and their unions from the process.”
“CalPERS has excluded us from bargaining over copays, over what types of procedures are covered, and who can provide our health services,” Walker said. “Even worse, they won’t share the information we need—like how much profit the insurance companies are making off of us—or the actual cost of health care for our members.”
This year, CalPERS requested Blue Shield, Blue Cross and Kaiser to come up with plans that would have premium increases ranging from zero to five percent. In the past, such “demands” by CalPERS simply meant that insurance companies hiked up co-pays and other employee costs, and decreased our health care services.
One example of premium inequity looms large: in 2008, the largest purchaser of health insurance coverage for school district employees had no premium increases for health plans similar or better than those negotiated by CalPERS. CalPERS premium increases for 2008 average between eight and ten percent.
During the next two months, Local 1000 members will be organizing to demand that CalPERS negotiate for real cost controls and for a lowering of insurance company profits—not just a new round of cost shifting to employees.
If premiums appear to be rising next year, we will also demand that the state accept a larger share of the rising health insurance costs for state workers.