California State Workers Began Health Open Enrollment

State employees may select benefits through October 9, as CalPERS replaces two UnitedHealthcare plans.

Updated on Sept. 22, 2026 in Healthcare

Bold flat-color editorial illustration featuring a geometric insurance folder, evoking the administrative nature of California state health benefits enrollment. — Approximately 94,000 California state employees have begun health benefits open enrollment, following CalPERS' decision to replace two UnitedHealthcare plans. AI Illustration. Upload story photo >

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California state workers have begun the open enrollment period for health benefits, which will conclude on October 9. The process follows a decision by CalPERS to drop two UnitedHealthcare HMO plans due to significant proposed rate increases.

Why it matters

CalPERS rejected the UnitedHealthcare proposals because the hikes were not justified, opting to replace the plans with Sutter Health. This move aims to control rising costs for state employees amid a broader national environment of increasing health insurance premiums.

CalPERS reported an average health plan rate increase of 4.97%, significantly lower than the 9% national average. Meanwhile, employer contribution rates increased by 3% to 4% for the coming cycle.

The players

CalPERS

The California Public Employees' Retirement System manages health and retirement benefits for more than 1.5 million California public employees, retirees, and their families.

UnitedHealthcare

This large health insurance provider offers a wide array of coverage options and health care services to individuals and employers across the United States.

Sutter Health

This not-for-profit network of hospitals, physicians, and other healthcare providers serves millions of patients across Northern California.

The details

Approximately 94,000 members are affected by the removal of the UnitedHealthcare Harmony and Alliance plans, which faced proposed rate hikes of 21% and 23%, respectively. Employees are currently using the myCalPERS portal to manage their selections, with changes taking effect at the start of the new year.

September 2026: Open enrollment for state health benefits begins.
October 9, 2026: The open enrollment period officially ends.
January 1, 2027: Benefit plan changes take effect.

Market Landscape

CalPERS' decision to drop UnitedHealthcare plans underscores a growing trend of public entities challenging private insurers on cost justifications. This shift positions the agency to aggressively manage its provider network to avoid the higher premium inflation observed nationally.

State employees must use the myCalPERS portal by October 9 to review their options, especially if they were previously enrolled in the discontinued UnitedHealthcare plans. Since unchanged selections roll over, members should verify their current coverage to avoid unintended impacts on their January 1 benefits.

The takeaway

Proactive management of health benefits can lead to cost savings compared to national insurance averages. Employees should prioritize reviewing plan changes during the open enrollment window to ensure their selected coverage aligns with their needs.