$60,315,000
The California Public Employees' Retirement System (CalPERS) administers CSU employee health care benefits. Health care premiums are shared between the CSU and its employees, with the CSU funding a significant portion of the costs. The 2025-26 CSU budget plan includes $60.3 million to fund the base increase in employer-paid health care costs resulting from changes in premiums effective January 2025. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2020 through 2025:
Government Code Health Care Monthly Employer Contribution Rates
| Employee Only | $767 | $798 | $816 | $883 | $983 | $1,060 | 38.2% | $293
|
| Employee + 1 dependent | $1,461 | $1,519 | $1,548 | $1,699 | $1,890 | $2,039 | 39.6% | $578
|
| Employee + 2 or more |
$1,868 | $1,937 | $1,983 | $2,124 | $2,366 | $2,551 | 36.6% | $683
|
The CSU is governed by Government Code Section 22871 that defines the way employer-paid health care contribution rates are calculated. Either through policy or collective bargaining agreement, the CSU covers health care costs for represented and non-represented employees up to an amount equivalent to the established Government Code rates, with the exception of Unit 6 (Skilled Crafts), which bargained for CSU employer health contribution rates slightly above Government Code rates. The total increase in CSU health care costs due to contribution changes during this five-year period is more than $226.9 million.
Five-Year Increase in Health Care Costs
| 2021 | 3.8% | 23,782,000 |
| 2022 | 2.2% | $13,962,000 |
| 2023 | 8.0% | $50,524,000 |
2024
| 11.3% | $78,361,000 |
2025
| 7.8% | $60,315,000 |
The 2025-26 budget request funds permanent base budget costs associated with January 2025 employer health care premium increases. The CSU must absorb approximately $30.2 million during 2024-25 to fund the one-time costs related to the January 2025 premium increases for the six-month period from January-June 2025.