A message from CalPERS Stakeholder Relations
Effective January 1, 2027, the UnitedHealthcare Basic HMO plans (Alliance and Harmony) will no longer be a part of CalPERS offerings.
After conducting independent examinations of cost and utilization data, we did not renew the Basic (non-Medicare) contract with UnitedHealthcare due to their high and unjustified 2027 rate increases. UnitedHealthcare’s proposed rate increase for Alliance was 23%, which was over three times CalPERS’ projection. For Harmony, 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.
With the exit of UnitedHealthcare’s Basic plans, we are proud to offer Sutter Health Plan as a new HMO option in 2027. This integrated health plan offers members coordinated care across clinicians and hospitals and receives high ratings on quality and service through the National Committee for Quality Assurance. This new partnership contains the same strong terms and conditions across all HMO plans and demonstrates that more affordable options can be provided while prioritizing access to quality care.
The addition of Sutter Health Plan means that many of the members affected by the UnitedHealthcare Basic Plan exit will have the option to continue their existing care with Sutter Health Medical Group. For those who are outside of Sutter Health Plan’s service area, we have identified plans that will provide the best potential access to their existing primary care provider.
To support members affected by the removal of UnitedHealthcare Basic plans, we have created a dedicated webpage with information about this change and resources to help them understand what to expect.
Visit calpers.ca.gov/UHC to find more information, including:
- Why the UnitedHealthcare Basic HMO plans are being removed
- What affected members should consider during Open Enrollment
- What happens if a member does not choose a new plan during Open Enrollment
- The addition of Sutter Health Plan as a new Basic HMO option
- Continuity of Care
- Frequently asked questions
Affected members will also receive communication from CalPERS before and during Open Enrollment. This communication will include:
- Emails beginning at the end of this month
- Targeted letters in late August
- Health Plan Statement custom messaging beginning September 8
- Information during the Open Enrollment Member Webinar on September 9
Open Enrollment runs from September 14 through October 9, 2026. Beginning September 8, 2026, members can use myCalPERS to compare available 2027 health plan options, review premiums, and check provider availability.
We encourage you to review calpers.ca.gov/UHC and use this webpage as the primary resource for questions about the UnitedHealthcare Basic HMO plan exit and Sutter Health Plan addition.
For a list of all 2027 health plan changes, visit the Annual Health Plan Changes page.