$25,981,000
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 2020-21 CSU budget plan includes $26 million to fund the base increase in employer-paid health care costs resulting from changes in premiums effective January 2020. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2015 through 2020:
Government Code Health Care Monthly Employer Contribution Rates
Employee Only
| $655
| $705
| $707
| $725
| $734
| $767
| 17.1%
| $112
|
Employee + 1 dependent
| $1,246
| $1,343
| $1,349
| $1,377
| $1,398
| $1,461
| 17.3%
| $215
|
Employee + 2 or more
| $1,605
| $1,727
| $1,727
| $1,766
| $1,788 | $1,868
| 16.4%
| $263
|
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 $81 million.
Five-Year Increase in Health Care Costs
2016
| 7.7%
| 35,080,000 |
2017
| 0.2%
| 912,000 |
2018
| 2.3%
| 12,029,000 |
2019
| 1.3%
| 7,034,000 |
2020
| 4.5%
| 25,981,000 |
The 2020-21 budget request funds permanent base budget costs associated with January 2020 employer health care premium increases. The CSU must absorb approximately $13 million during 2019-20 to fund the one-time costs related to the January 2020 premium increases for the six-month period from January-June 2020.