[Congressional Record Volume 156, Number 167 (Thursday, December 16, 2010)]
[Extensions of Remarks]
[Pages E2153-E2154]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CALPERS DETAILS SEVERAL KEY WAYS THE HEALTH REFORM LAW IS HELPING THEIR 
                                MEMBERS

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                      Thursday, December 16, 2010

  Mr. STARK. Madam Speaker, I rise to share a letter written to the 
Department of Health and Human Services Secretary Kathleen Sebelius 
last week. In this letter, copied below, the CEO for the California 
Public Employees Retirement System, CalPERS, details several key ways 
the health reform law is already helping their members.
  CalPERS is the largest non-federal purchaser of health benefits in 
the country outside of the Federal Employees Health Benefits Program, 
FEHBP. They highlight expanded coverage for young adults, removal of 
lifetime limits on benefits, and assistance with the costs of retiree 
health benefits as three key ways reform is already making a 
difference.
  Republicans refuse to look at the benefits of health reform and are 
continuing to insist they will ``repeal ObamaCare.''
  President Obama should be proud to have the right wing label health 
reform with his name. As this CalPERS example shows, health reform is 
expanding and improving health coverage already. As time moves forward, 
the benefits to working families, small businesses, and large companies 
only increase.


                                    Executive Office, CalPers,

                                Sacramento, CA, December 10, 2010.
     Hon. Kathleen Sebelius,
     Secretary, U.S. Department of Health and Human Services, 
         Washington, DC.
       Dear Secretary Sebelius: As the nation's largest non-
     federal purchaser of health care, the California Public 
     Employees' Retirement System (CalPERS) has a keen interest in 
     national health care reform. From the beginning, CalPERS 
     supported the reform necessary to contain costs for employers 
     and their employees while maintaining quality health care.
       Many health care elements we have championed, such as 
     guaranteed issue policies; eliminating co-pays for preventive 
     services; bans on pre-existing conditions; stabilizing health 
     premiums; supporting innovative delivery system reforms; and 
     patient protection against medical bankruptcies are now major 
     components of health care reform.
       We believe that key elements of national health care reform 
     represent a fundamental and positive shift in the way health 
     care will be purchased and delivered in the United States. 
     Together, they will dramatically shape the future of health 
     care in our country and ultimately benefit everyone.
       During our recent open enrollment period, CalPERS 
     emphasized the benefits of many health care reform 
     provisions--including extension of dependent coverage, 
     elimination of lifetime limits, and the Early Retiree 
     Reinsurance Program. We are writing to share some of our 
     implementation successes.

[[Page E2154]]

     (1) Extension of Dependent Coverage to Age 26
       In recognition of young adults' need for health care 
     coverage, CalPERS launched a massive communication effort to 
     educate and inform employers and members of the extended 
     dependent coverage benefit. We developed special enrollment 
     teams, published communication materials, posted information 
     on our website, and issued press releases highlighting this 
     new health care reform provision.
       Our efforts successfully resulted in more than 27,000 young 
     adults being added to their parents' health plans effective 
     January 1, 2011. Best of all, adding them to our program 
     resulted in a 2011 health insurance premium increase of less 
     than 1 percent. Families can now rest easier in these 
     uncertain economic times knowing their dependents, regardless 
     of marital status, can be covered up to age 26.
     (2) Removal of Lifetime Limits
       Most CalPERS health insurance plans have never included 
     lifetime limits on the dollar value of benefits. Further, we 
     proactively monitored our members who were enrolled in the 
     few health plans that did include lifetime limits, so we 
     could work with them to change plans when they approached 
     these limits.
       As a result of health care reform, CalPERS has removed 
     lifetime limits from all our plans that had included them, 
     and now our members enjoy more health plan options and less 
     financial risk.
     (3) Early Retiree Reinsurance Program (ERRP)
       For years, CalPERS health plans have included wellness and 
     disease management programs that promote prevention and 
     manage chronic conditions. These programs, now required of 
     ERRP participants, mitigate the on-going fiscal impact of 
     caring for an older population. It's encouraging that these 
     programs can reduce costs.
       Notwithstanding this success, approximately 24 percent of 
     our non-Medicare medical and pharmaceutical costs are 
     associated with early retiree health liability. Recognizing 
     this, the Affordable Care Act included much needed provisions 
     for relief from these costs. CalPERS 2010 health premium 
     rates reflected the lowest increase in 14 years.
       In anticipation of the Department of Health and Human 
     Services certifying our ERRP application, CalPERS proactively 
     negotiated 2011 health plan contracts that reduced premium 
     increases by more than 3 percent for our non-Medicare plans. 
     We estimate ERRP will provide premium savings of 
     approximately $200 million based on reimbursement related to 
     more than 115,000 early retirees and their spouses, surviving 
     spouses, and dependents.
       We thank you for expeditiously implementing important 
     health care reform provisions and we are committed to being a 
     collaborative partner in ensuring the smooth and successful 
     implementation in the months and years ahead.
       If you have any questions regarding our program, please 
     contact me.
           Sincerely,
                                                   Anne Stausboll,
     Chief Executive Officer.

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