Uses of Revenue
Health Care Premium Increase, $36,226,000
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 2013/14 CSU budget plan includes $36.2 million to fund the base increase in employer-paid health care costs resulting from changes in premiums effective January 2013. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2009 through 2013:
| Government Code Health Care Monthly Employer Contribution Rates | |||||||
|---|---|---|---|---|---|---|---|
| Eligible Dependents |
2009 | 2010 | 2011 | 2012 | 2013 | % Change | $ Increase |
| Employee Only |
$478 | $493 | $542 | $566 | $622 | 30.1% | $144 |
| Employee + 1 dependent |
$909 | $936 | $1,030 | $1,074 | $1,183 | 30.1% | $274 |
| Employee + 2 or more |
$1,167 | $1,202 | $1,326 | $1,382 | $1,515 | 29.8% | $348 |
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 nearly $106 million.
| 5-Year Increase in Health Care Costs | |||||||
|---|---|---|---|---|---|---|---|
| Calendar Year (Contract Period) |
Government Code Health (Employer-Paid Budget Increase) |
CSU Annualized Health Care (Budget Increase) |
|||||
| 2009 | 2.7% | 8,484,000 | |||||
| 2010 | 3.0% | 9,700,000 | |||||
| 2011 | 10.2% | 36,407,000 | |||||
| 2012 | 4.3% | 15,086,000 | |||||
| 2013 | 9.8% | 36,226,000 | |||||
| 5-Year Increase in CSU Health Care Costs | $105,903,000 | ||||||
The 2013/14 budget request funds permanent base budget costs associated with January 2013 employer health care premium increases. The CSU must absorb approximately $18.1 million during fiscal year 2012/13 to fund the one-time costs related to the January 2013 premium increases for the six-month period from January-June 2013.
