CalPERS May Place Health Care Under Control Of Single Administrator

Armen Hareyan's picture

California Public Employees' Retirement Systemtrustees are considering a plan that would place all CalPERS healthplans under the control of a single outside administrator, the Sacramento Beereports. The plan is motivated by CalPERS' desire to increase its cloutin health care purchasing. CalPERS is the nation's third-largestpurchaser of health care.


Under the plan, the administratorwould be charged with negotiating health insurance rates for CalPERS'1.2 million beneficiaries, as well as studying disease managementprograms and other strategies for reducing health care costs. GeorgeDiehr, chair of the CalPERS Health Benefits Committee, said that theadministrator also could help formulate a risk-adjustment plan todistribute the financial risks for each of the fund's health plans.

Inthe next few weeks, CalPERS will ask health care consultants to proposea framework for an administrator to oversee the fund's HMO andpreferred provider organizations plans. Officials expect to present aplan to trustees in December (Chan, Sacramento Bee, 10/18).

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