CA AB2142

Authorizes the Public Employees' Retirement System (PERS) Board to implement and administer risk adjustment procedures that require health benefit plans to adjust premiums and allow redistribution of premiums based on board-established rules and regulations.

Specifies the board's authority to adjust premiums as part of health promotion and disease prevention programs and to develop risk adjustment procedures that encourage plans to offer benefits based on medical and administrative efficiency and quality of care rather than employee health status or service areas with low-risk populations.

Adds moneys from health benefit plans for risk adjustment purposes to the Public Employees' Health Care Fund and authorizes the board to use reserves generated by one or more self-funded health benefit plans for risk adjustment programs and procedures.

Makes an appropriation by authorizing new uses of funds within the continuously appropriated Public Employees' Health Care Fund and Public Employees' Contingency Reserve Fund.