UnitedHealthcare Basic Health Plans Removal for 2027
Effective January 1, 2027, UnitedHealthcare SignatureValue Alliance HMO and UnitedHealthcare SignatureValue Harmony HMO will no longer be a part of CalPERS health plan offerings. These are the Basic plans only (non-Medicare). UnitedHealthcare Group Medicare Advantage will remain for our retired Medicare members.
To continue offering high-quality, sustainable, and affordable health plans for our members, we made the difficult decision to remove UnitedHealthcare from the CalPERS Basic plan portfolio, as their proposed premium increases were high and unjustified.
Who is Affected
Members currently enrolled in the following plans are affected:
- UnitedHealthcare SignatureValue Alliance HMO (Basic Plan)
- UnitedHealthcare SignatureValue Harmony HMO (Basic Plan)
- UnitedHealthcare Combination Plan (a Combination plan means some family members are covered under a Medicare plan and others are covered under a Basic plan with the same health carrier)
If you’re enrolled in one of these plans, you will receive an email and letter from CalPERS with important information on how you are affected and guidance on factors to consider during Open Enrollment.
We recognize that many UnitedHealthcare Basic plan enrollees use Sutter Health Medical Group for their care. To prioritize continued access to Sutter Health Medical Group for affected members, we’ve added Sutter Health Plan to our Basic plan offerings effective January 1, 2027.
If You Don’t Choose a New Plan
You and any dependent(s) will be administratively transferred into another available health plan for 2027.
Administrative transfer plans have been selected based on primary care provider continuity. We want to ensure you and your family can continue with the same primary care provider relationship you have today, where possible.
These tables show the plan CalPERS will transfer you to if you don’t choose a new plan during Open Enrollment. To check the plan you’ll be enrolled in, find your current health plan, plan type (Basic or Combination), and county.
If you wish to enroll in the administrative transfer plan selected for you, no action is required. We will automatically transfer you to this plan.
Administrative Transfer Plans
Note: Due to differences in health plan service areas, certain ZIP codes within counties may have different administrative transfer plans. Find these ZIP codes in the ZIP Code Exception(s) column.
UnitedHealthcare SignatureValue Alliance HMO
| Counties | Administrative Transfer Plan | ZIP Code Exception(s) |
|---|---|---|
| Sutter Health Plan HMO | Placer County transfers to Anthem Blue Cross Traditional HMO
|
| Anthem Blue Cross Select HMO | Kern County (93215) transfers to Blue Shield of California Access+ HMO |
| Blue Shield of California Access+ HMO |
|
| Counties | Administrative Transfer Plan | ZIP Code Exception(s) |
|---|---|---|
| Anthem Blue Cross Traditional HMO and Medicare Preferred | Not Applicable |
| Anthem Blue Cross Select HMO and Medicare Preferred | Kern County (93215) transfers to Blue Shield Access+ HMO and Medicare and Group Medicare Advantage PPO |
| Blue Shield Access+ HMO and Group Medicare Advantage PPO |
|
UnitedHealthcare SignatureValue Harmony HMO
| Counties | Administrative Transfer Plan | ZIP Code Exception(s) |
|---|---|---|
| Blue Shield of California Access+ HMO | Not Applicable |
| Blue Shield of California Trio HMO |
|
| San Diego | Sharp Performance Plus HMO | Not Applicable |
| Napa | Western Health Advantage HMO | Not Applicable |
| Counties | Administrative Transfer Plan | ZIP Code Exception(s) |
|---|---|---|
| Blue Shield Access+ HMO and Medicare | Not Applicable |
| Blue Shield Trio HMO and Group Medicare Advantage PPO |
|
| San Diego | Sharp Performance Plus and Direct Advantage HMO | Not Applicable |
| Napa | Anthem Blue Cross Traditional HMO and Medicare Preferred | Not Applicable |
Examples
Jane is in a UnitedHealthcare SignatureValue Alliance HMO Basic plan and lives in Placer County, but her ZIP code is in 95701. This means she will be administratively transferred to Anthem Blue Cross Traditional HMO instead of Sutter Health Plan HMO because Sutter Health Plan HMO isn’t available in that ZIP code.
Ben is in a UnitedHealthcare SignatureValue Alliance HMO Basic plan and his spouse is in UnitedHealthcare Group Medicare Advantage PPO. This means he is in a combination plan. Ben also lives in Placer County, but his ZIP code is 95714. This means he will be administratively transferred to Anthem Blue Cross Traditional HMO and Medicare Preferred (a combination plan) instead of Sutter Health Plan HMO because Sutter Health Plan HMO will not offer a Medicare plan in 2027.
Sutter Health Plan Basic HMO Addition
Effective January 1, 2027, Sutter Health Plan will provide a new Basic HMO option in the following counties:
- Placer
- Sacramento
- San Joaquin
- Stanislaus
- Solano
- Yolo
Members transitioning to Sutter Health Plan from UnitedHealthcare SignatureValue Alliance HMO can expect access to the doctors and specialists they see today. Pharmacy benefits through CVS will also remain the same.
Sutter Health Plan provides access to behavioral health services through Carelon Behavioral Health. To confirm if your behavioral health provider is in network, use the online provider search tool at www.carelonbh.com/sutterhealthplan. You can also contact Sutter Health Plan after September 1, 2026. If your provider is not in-network, Sutter Health Plan can help you identify available Carelon provider options.
Continuity of Care
If your provider is not in network, your new health plan can help you find health providers. If you have a qualifying health condition, you may be able to keep seeing your current provider for a period of time while you transition to an in-network provider. For more information, visit dmhc.ca.gov or talk to your current health plan.
Review Your 2027 Health Plan Options
Starting September 8, 2026, log in to your myCalPERS account to use the Search Health Plans tool. You can compare available health plans, review premiums, and check whether your doctor or medical group are available through the plans you’re considering.
You can choose a new health plan during Open Enrollment, which runs from September 14 through October 9, 2026.
Frequently Asked Questions
CalPERS is removing UnitedHealthcare SignatureValue Alliance HMO and UnitedHealthcare SignatureValue Harmony HMO because UnitedHealthcare’s proposed 2027 rates were significantly higher than CalPERS’ projections and not supported by CalPERS’ review of the proposed rates.
After conducting independent examinations of cost and utilization data, CalPERS did not renew its Basic (non-Medicare) contract with UnitedHealthcare due to their high and unjustified 2027 rate increases. UnitedHealthcare’s proposed rate increase for SignatureValue Alliance HMO was 23%, which was over three times CalPERS’ projection. For SignatureValue Harmony HMO, CalPERS projection showed no increase, while UnitedHealthcare proposed a 21% premium increase. If accepted, UnitedHealthcare’s proposed rates would have added an additional $167 million in premiums paid by members and employers.
Sutter Health Plan is a strong addition to the CalPERS portfolio. As a fully integrated health plan, it operates in a coordinated way across its clinicians and hospitals, similar to other plans in our program, like Kaiser and Sharp. Plans with this kind of integrated structure often achieve stronger clinical outcomes because care is better coordinated. In addition, it receives high ratings on quality and service from the National Committee for Quality Assurance.
Sutter Health Plan is the lowest cost Basic plan that will offer members in the greater Sacramento region access to the Sutter Health Network. Sutter Health Plan will be available in Placer, Sacramento, San Joaquin, Stanislaus, Solano, and Yolo counties, as this is largely the service area that UHC SignatureValue Alliance HMO had with Sutter Medical Group. Sutter Medical group is available in Alameda, Contra Costa, Marin, Merced, San Francisco, San Mateo, Santa Clara, Santa Cruz and Sonoma counties through Blue Shield’s Access+ HMO plan.
Sutter Health Medical Group is a healthcare provider network that includes doctors, hospitals, care centers, and other services. Sutter Health Plan is the insurance plan.
Members in combo plans must be covered by carriers with both types of plans– Basic and Medicare – available. CalPERS will no longer offer a UnitedHealthcare Basic plan to pair with a UnitedHealthcare Medicare plan. This means that members in UnitedHealthcare combo plans will have to find a new carrier that has both a Basic and Medicare plan. Options include: Anthem, Blue Shield, Kaiser, Sharp, PERS Gold, and PERS Platinum. However, members should review their options during Open Enrollment to confirm which of these plans are available in their eligibility ZIP code.
It depends on the health plan the member chooses during Open Enrollment or is administratively transferred into. Some members may be able to keep their current doctor, medical group, hospital, or pharmacy. Others may need to use a different provider network or pharmacy arrangement depending on the plan they select for 2027. Members should review provider networks and pharmacy coverage when considering plans.
We are working with Sutter Health Plan to ensure members keep their current Sutter Health PCP. You can use the Find a Provider or Find a Location tools on the Sutter Health Plan website to search for participating providers.
Depending on the situation, a member may be eligible for continuity of care. There are limitations on what conditions qualify, but the first step is to contact your current health plan and discuss continuity of care.
Behavioral health provider access will depend on the health plan the member chooses during Open Enrollment or is administratively transferred into.
Members who currently receive behavioral health services through Optum should confirm whether their behavioral health provider is included in the network for the health plan they are considering for 2027. The Behavioral Health Programs by Health Plan pages will be updated by September 8, 2026 for detailed information on the specific mental health benefits each health plan offers.
Members considering Sutter Health Plan can look up a behavioral health provider on the www.carelonbh.com/sutterhealthplan. Beginning September 1, 2026, members can also contact Sutter Health Plan directly to ask whether their therapist, psychiatrist, behavioral health provider, or other behavioral health services are included in the plan’s network.
CalPERS is working with Sutter Health Plan to review behavioral health provider access and support continuity where possible for members affected by the UnitedHealthcare Basic HMO plan removal.
CalPERS began communicating with affected members in July and will continue through Open Enrollment. Members will receive information to help them compare health plan options to select the plan that best meets their needs for 2027.
Communication includes the following:
- Emails at the end of July
- Targeted letters in late August
- The Health Plan Statement, available starting September 8, 2026 in myCalPERS
- The Open Enrollment Member Webinar on September 9, 2026 which will include detailed information about all health plan changes for 2027