CalPERS approves 7.2% increase in HMO rates as drug costs climb

Ann Boynton, CalPERS’ deputy executive officer for benefits, said the latest premium increases stemmed in large part from bigger pharmacy bills.

She said drug costs accounted for nearly 45% of the overall rate increases for both HMO and PPO plans.

“CalPERS endeavors to keep increases as low as possible for members while still providing quality healthcare, but pharmacy pricing presented a high hurdle to get over,” Boynton said.

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