Board approves Health Net Canopy Care 2024 rate cards, citing a 3.7% net increase after buy-down
May 11, 2023 | San Francisco City, San Francisco County, California
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
The board voted to approve the recommended 2024 Health Net Canopy Care HMO rate cards, which Aon presented as reflecting a 3.7% overall increase in projected medical, prescription drug and fee costs from 2023 to 2024 after accounting for a stabilization buy-down.
Aon actuary Mike Clark reviewed the components driving the recommendation: a 15.3% capitation increase into 2024 (from a reduced 2023 capitation base), lower-than-expected pharmacy per-member-per-month experience for SFHSS in 2022'2023, a 3% medical administrative fee increase as part of a three-year fee schedule, and a previously approved $118,000 rate-stabilization buy-down. Clark said the net effect produced about a 5.5% plan-cost increase before the stabilization buy-down, arriving at a 3.7% net recommendation.
Motion and vote: A commissioner moved to approve the Health Net Canopy Care 2024 rates; the motion was seconded and the board approved the recommendation by roll call (Vice President Howe, Commissioners Breslin, Canning, Fonsby, and Zavansky recorded Aye; chair noted the vote was unanimous with some reluctance reported).
What it means: The approved rate cards set employer- and member-level contributions under SFHSS formulas for active employees and early retirees and will be implemented for plan-year renewals. Staff said remaining non-Medicare plan renewals will be presented at the May 25 special meeting.
Aon actuary Mike Clark reviewed the components driving the recommendation: a 15.3% capitation increase into 2024 (from a reduced 2023 capitation base), lower-than-expected pharmacy per-member-per-month experience for SFHSS in 2022'2023, a 3% medical administrative fee increase as part of a three-year fee schedule, and a previously approved $118,000 rate-stabilization buy-down. Clark said the net effect produced about a 5.5% plan-cost increase before the stabilization buy-down, arriving at a 3.7% net recommendation.
Motion and vote: A commissioner moved to approve the Health Net Canopy Care 2024 rates; the motion was seconded and the board approved the recommendation by roll call (Vice President Howe, Commissioners Breslin, Canning, Fonsby, and Zavansky recorded Aye; chair noted the vote was unanimous with some reluctance reported).
What it means: The approved rate cards set employer- and member-level contributions under SFHSS formulas for active employees and early retirees and will be implemented for plan-year renewals. Staff said remaining non-Medicare plan renewals will be presented at the May 25 special meeting.
Don't Miss a Word: See the Full Meeting!
Go beyond summaries. Unlock every video, transcript, and key insight with a Founder Membership.
✓
Get instant access to full meeting videos
✓
Search and clip any phrase from complete transcripts
✓
Receive AI-powered summaries & custom alerts
✓
Enjoy lifetime, unrestricted access to government data
30-day money-back guarantee
