CalPERS has dropped health coverage for nearly 9,000 people over the last year after a sweeping audit revealed they weren’t eligible for benefits received through state-worker and state-retiree health plans.
When added to roughly 5,300 ineligible dependents voluntarily removed from state insurance rolls last year, agencies are saving more than $2 million per month in premium payments alone, according to a report prepared for CalPERS Board of Administration. Scrubbing the rolls has saved the state another $64.7 million in avoided claims for doctor visits. hospitalizations, medication and other health services, the report states.
CalPERS launched an audit of dependents on state agencies’ medical-insurance rolls last year. At the time, the fund estimated about 29,000 ex-spouses, live-in partners and other so-called “ineligible dependents” were receiving coverage who shouldn’t have been. It figures to finish the dependent-eligibility verifications of local agencies and schools in the first quarter of 2015.
CalPERS provides medical insurance for a 1.4 million government employees, retirees and their dependents.