Health Care Premium Increase


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 2017-18 CSU budget plan includes $0.9 million to fund the base increase in employer-paid health care costs resulting from changes in premiums effective January 2017. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2013 through 2017:​

Government Code Health Care Monthly Employer Contribution Rates​

​Eligible Dependents ​ ​2013 ​ ​2014 ​ ​2​​015 ​ ​2016 ​ ​2​017 ​ ​Five-Y​ear Increase ​
​ % ​$
​Employee Only​$622​$642​$655​$705​$707​13.7%​$85
​Employee + 1 dependent$1,183​​$1,218​$1,246​$1,343​$1,349​14.0%​$166
​Employee + 2 or more$1,515​​$1,559​$1,605​$1,727​$1,727​14.0%​$1,212


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 $95 milli​on.

5-Year Increase in Health Care Costs

Calend​ar Year
(Contract Period)​
Government Code Health​ 
(Employer-Paid Budget Increase)
CSU Annualized Health Care
Budget Increase​
5-Year Increase in CSU Health Care Cos​ts:$95,324,000


The 2017-18 budget request funds permanent base budget costs associated with January 2017 employer health care premium increases. The CSU must absorb approximately $0.5 million during 2016-17 to fund the one-time costs related to the January 2017 premium increases for the six-month period from January to June 2017.​