Uses of Revenue
2010/11 Health Care Premium Increase, $9.7 Million
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 2010/11 CSU budget plan includes $9.7 million to fund the base increase in employer-paid health care costs resulting from January 2010 premium increases. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2006 through 2010:
Government Code Health Care Monthly Employer Contribution Rates
% $ Amount
+ 1 dependent
+ 2 or more
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 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 nearly $86.7 million.
5-Year Increase in Health Care Costs
|Government Code Health
(Employer-Paid Budget Increase)
|5-Year Increase in CSU Health Care Costs||$86,682,000|
The 2010/11 budget request funds permanent base budget costs associated with January 2010 employer health care premium increases. The CSU plans to absorb approximately $4.85 million during fiscal year 2009/10 to fund the one-time costs related to the January 2010 premium increases for the six-month period from January-June 2010.