CalPERS Dependent Eligibility Verification Project Saves More than $106 Million
November 18, 2014
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Bill Madison, Information Officer
SACRAMENTO, CA - The California Public Employees' Retirement System (CalPERS) today announced that its Dependent Eligibility Verification (DEV) project has, to date, resulted in more than $106.3 million in projected savings. Citing data as of October 1, CalPERS staff reported to the Board of Administration's Pension & Health Benefits Committee that the DEV cost savings were due to more than 15,000 ineligible dependents being removed from health coverage through the project’s amnesty period (March–June 2013) and five state verification cycles.
The verification phase of the DEV project began in July 2013. All active and retired employees of state agencies, public agencies, and school districts are being asked to provide documentation to verify that their dependents are eligible for health coverage through their employers. CalPERS contracted with HMS Employer Solutions (HMS) to conduct the eligibility verifications. The first five of nine cycles of the DEV project included verification for dependents of state employees and ended July 31. The staff report showed that during those five cycles, 8,940 ineligible dependents were removed from health plans paid for by state employers.
"This has been a great project in terms of ensuring that only eligible dependents remain enrolled in CalPERS health plans," said George Diehr, acting chair of the CalPERS Pension & Health Benefits Committee. "This is another way CalPERS can help manage health care costs for our employers and, ultimately, for our members."
The final cycles of the DEV project are currently under way as HMS verifies the eligibility of dependents of active and retired public agency employees. Dependent verification for active and retired school district employees will begin December 1. The DEV project concludes in spring 2015 with a final report to the CalPERS Board of Administration to follow after cumulative results are tallied.
"The DEV project is helping CalPERS achieve its goal of improving the long-term sustainability of our health benefits program by ensuring they are affordable, of high quality, and accessible ," said Ann Boynton, CalPERS’ Deputy Executive Officer for Benefit Programs Policy and Planning. "We know that many school districts have already undertaken similar reviews. Still, we expect that the final savings projections, which will include all of the public employers with CalPERS health plans, to be greater than what is reported today."
More information about the DEV project can be found under either the Members Health Benefits Program or the Employer Information section of CalPERS On-Line at www.calpers.ca.gov.
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our Pension Fund serves more than 1.7 million members in the CalPERS retirement system and administers benefits for more than 1.4 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS’ total fund market value currently stands at approximately $296 billion. For more information, visit www.calpers.ca.gov.