April 14, 2023
Circular Letter: 600-018-23
Topic: Health Benefits

To: Contracting Agency Health Benefits Officers and Assistant Health Benefits Officers


This Circular Letter informs contracting public agencies and schools of the new minimum employer health contribution for calendar year 2024.


The Minimum Employer Contribution amount is prescribed by Government Code Section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA)1. This section provides that “the employer contribution shall be adjusted annually by the board to reflect any changes in the medical care component of the Consumer Price Index-Urban (CPI-U) and shall be rounded to the nearest dollar.”

Inflation Rate Changes

In January 2023, the U.S. Bureau of Labor Statistics determined the annual percentage change in the medical care component of the CPI-U for 2022 was 4.1%.

The table below provides an inflation comparison of medical care rates:

Year Index Percent
2018 484.707 2.0
2019 498.413 2.8
2020 518.876 4.1
2021 525.276 1.2
2022 546.554 4.1

Calculation of the Minimum Employer Contribution

Using the 4.1% increase in the medical care component of the CPI-U, the minimum employer contribution for calendar year 2024 is $157; see calculation below.

  1. $151 x 4.1% = $6.19
  2. $151 + $6.19 = $157.19, rounded to $157

Minimum Employer Contribution

The table below displays the annual amounts of the Minimum Employer Contribution for members by calendar year:

Year Employer Contribution
2020 $139
2021 $143
2022 $149
2023 $151
2024 $157

Contribution Change Process

Contracting agencies that have designated the PEMHCA Minimum as their monthly employer health contribution will have their employer billing automatically updated to reflect the new amount effective January 1, 2024.

Contracting agencies do not need to act unless they wish to make a change to their current contribution method. To do so, employers must submit a change resolution. Change resolutions are effective the first day of the second month following receipt by CalPERS.


We are committed to assisting you conduct business with the CalPERS Health Program. To request the necessary change resolution template, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).


Yesenia Croft, Chief
Health Account Management Division

1California Government Code § 20000, et seq.