The UnitedHealthcare SignatureValue Alliance and SignatureValue Harmony plans will no longer be available in 2027, following changes to CalPERS Basic HMO plans approved by the CalPERS Board of Administration in July. The board also approved adding Sutter Health Plan in select counties.
Here’s what you need to know about the transition, Open Enrollment, and next steps.
Which UnitedHealthcare plans were removed from the CalPERS Health Program?
We removed UnitedHealthcare’s SignatureValue Alliance and SignatureValue Harmony from our Basic HMO plan offerings for 2027. This change applies to UnitedHealthcare’s Basic plans only and does not apply to its Group Medicare Advantage PPO plan.
Why did CalPERS remove UnitedHealthcare’s Basic HMO plans?
We removed UnitedHealthcare SignatureValue Alliance and Harmony plans because their proposed 2027 rates were high and unjustified when compared to our independent projections. Specifically, UnitedHealthcare proposed an approximately 23% increase for Alliance, compared with CalPERS’ projected 7.4% increase, and while CalPERS projected no increase for Harmony, UnitedHealthcare projected a 21% increase for this plan.
Taken together, the proposed increases would have added an estimated $167 million in premium costs for members and employers in 2027. To keep health coverage affordable for members and employers, the board approved the recommendation to remove these two non-Medicare plans from our 2027 offerings.
Why did CalPERS add Sutter Health Plan for 2027?
We added Sutter Health Plan as a strong new option in our Basic HMO lineup. As a fully integrated health plan, Sutter Health Plan coordinates care across its clinicians and hospitals, like other integrated plans in our program. It also received strong quality and service ratings from the National Committee for Quality Assurance.
Sutter Health Plan is the lowest cost Basic plan that will offer members in the greater Sacramento region access to the Sutter Health Network. Sutter Health Plan will be available in Placer, Sacramento, San Joaquin, Stanislaus, Solano, and Yolo counties, as this is largely the service area that UnitedHealthcare SignatureValue Alliance HMO had with Sutter Medical Group.
Members transferring from SignatureValue Alliance to Sutter Health Plan in 2027 will continue to have their outpatient pharmacy benefits provided by CVS Caremark, as they do today.
Will I still be able to access my Sutter Health System providers?
For many of you who are enrolled in UnitedHealthcare SignatureValue Alliance, the Sutter Health Plan will help preserve access to the Sutter Health system at a more moderate price point in 2027. You’ll still want to review your options during Open Enrollment to confirm that your preferred doctors, medical groups, hospitals, and other providers are included in the plan you choose for 2027.
What options are available for UnitedHealthcare SignatureValue Harmony members in Southern California?
We did not add a new plan in Southern California because all providers, medical groups, and hospitals in UnitedHealthcare SignatureValue Harmony were already available through other CalPERS health plans. As always, you’ll want to review your Open Enrollment choices to confirm that your preferred providers are included in the plan you select.
What will happen if I don’t choose a new plan during Open Enrollment?
If you’re enrolled in UHC SignatureValue Alliance or Harmony and do not choose a new health plan during CalPERS Open Enrollment this fall, we’ll use an administrative transfer process to ensure you’re covered for 2027. Administrative transfer plans have been selected based on primary care provider continuity. We want to ensure you and your family can continue with the same primary care provider relationship you have today, where possible, while minimizing the potential impact on your premium.
Visit UnitedHealthcare Basic Plans Removal to find information on which plan you will transfer to if you don’t make a change during Open Enrollment.
What should I know if I’m in a UnitedHealthcare combination plan?
A combination plan is when at least one family member is enrolled in a Medicare health plan and one is enrolled in a Basic (non-Medicare) health plan through the same carrier. In 2027, we’ll no longer offer a UnitedHealthcare Basic plan to pair with UHC’s Medicare plan. This means that members in a UnitedHealthcare combination plan will have to find a new carrier that has both a Basic and Medicare option. These plans include Anthem, Blue Shield, Kaiser, Sharp, PERS Gold, and PERS Platinum. However, you should review your options during Open Enrollment to confirm which of these plans are available in your eligibility ZIP code.
How is CalPERS supporting members affected by the UnitedHealthcare Basic HMO plan removal?
We have created a dedicated webpage with information about this change and resources to help members understand what to expect, 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 us before and during Open Enrollment. This will include:
- Emails beginning at the end of July
- 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, you can use myCalPERS to compare available 2027 health plan options, review premiums, and check provider availability.
For a list of all 2027 health plan changes, visit the Annual Health Plan Changes page.