CalPERS health premium rates to increase in 2026. Here's how much they'll cost

Most state workers' health insurance premiums will increase in 2026 following approval of the new rates by the California Public Employees Retirement System's Board of Administration on Tuesday. Several of the most popular plans will see double digit hikes next year.

Basic HMO premium plans will increase an average of 6.5% next year, which CalPERS officials approved during a board meeting in Monterey. For most plans, the 2026 premium increases will be smaller than the price hikes enrollees faced earlier this year. Basic HMO plans increased by 8.7% in 2025.

Basic PPO premiums will increase by an average of 12% -- a steeper increase than last year's 9.8%. The state's two PPO plans, Gold and Platinum, will increase by 11% and 13%, respectively. Nearly 240,000 public employees and their beneficiaries are currently enrolled in those plans.

More than 520,000 people are currently enrolled in the state's most popular plan, Kaiser Permanente, which will see a premium increase of 5% next year. A single enrollee in the Kaiser Permanente plan pays a premium of $1,045, which will increase to $1,098 next year.

For those enrolled in Medicare plans, Medicare Advantage and Medicare Supplement premiums will increase on average by 7.1% and 14%, respectively. Those are smaller than price hikes at the beginning of 2025, when Medicare plans increased by 22% on average.

Representatives from two retiree groups, California State Retirees and the Retired Public Employees Association of California, lamented the ever-increasing cost of premiums.

"The rates are too high," J.J. Jelincic, RPEA's health benefits director and a former CalPERS board member, said during a public comment period. "Rates increasing at three times the rate of inflation is not something to brag about."

The board also approved a proposal to replace a low-cost plan in Monterey County due to anticipated premiums increases in the coming years. CalPERS will remove Blue Shield of California's Trio plan in Monterey County in favor of Access+. CalPERS staff said the provider network will not narrow with the switch from Trio to Access+ and patients will be able to keep seeing their medical professionals under the new plan.

The board also unanimously agreed to postpone UnitedHealthcare Harmony's expansion to several counties, including El Dorado, Nevada, Placer and San Joaquin, for one year.

State workers, retirees and their beneficiaries will be able to make changes to their plans during the open enrollment period, which begins Sept. 15 and ends Oct. 10.

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