LACERS Financial Report: Now’s When LACERS Looks For Health Plan Improvements


Michael Wilkinson, LACERS/Legal Representative

By Michael R. Wilkinson, LACERS/Legal Representative

Now is the time that LACERS begins the renewal process for all of the health, dental and vision contracts. LACERS staff and its health consultants use this process to keep our costs in check and look for possible improvements in our plans. This is for the plan year effective Jan. 1, 2020.

LACERS plans to explore ways to hold down our prescription drug costs as well as review alternative medicine benefits (chiropractic and acupuncture). In addition, LACERS plans to push to add the Silver and Fit program to the Kaiser HMO (under 65). Currently, several of the other medical carriers have either Silver and Fit, or the similar Silver Sneakers program that provides free gym membership.

LACERS is looking for ways to continue and possibly increase funding for the LACERS Well program to encourage members to lead healthy lives. As part of this, staff is using the computerized dashboards to detect medical trends. For instance, a recent review of the financial dashboard used for Anthem Blue Cross and Kaiser focused on five leading health problems and reviewed how to improve treatment, including use of the LACERS Well program. In addition, LACERS intends to use incentives to encourage members to use the health plans in a way that leads to healthier lives and also lowers the costs to the health plans.

The process for renewal of the health, dental and vision contracts began at the end of March and is scheduled to conclude with final renewals submitted to the LACERS Board in August.

A Note to Readers: I am stepping down from the RLACEI Board. This will allow me to concentrate my efforts on the LACERS Board of Administration.

I have enjoyed my eight years on the Board, working with Presidents Ed Harding and Ruth Perry. During that time I have served on the Legal and Legislative, Audit and Golf Committees. I will miss working with all of the directors who have been helpful to me.

This is definitely not a goodbye message. I will remain an RLACEI member and plan to continue to produce my article in Alive! regularly. Thanks to everyone for your support.