Blue Cross Selected To Run CalPERS’ New PPO Network
In a contract announced last month, CalPERS will pay Blue Cross of California $225 million over three years to run its PPO plans, the San Francisco Business Journal reports.
The new contract begins Jan. 1, 2008, and runs through Dec. 31, 2010.
Blue Cross has administered CalPERS' two existing PPO plans since 1999. The new network, PERS Select, is designed to deliver care more efficiently and cost-effectively, according to the Business Times.
UnitedHealthcare and Aetna were competing with Blue Cross to administer the new network.
Karen Perkins, CalPERS spokesperson, said the pension system in 2008 will spend:
- $3.5 billion on HMOs;
- $1.5 billion on PPOs; and
- $294 million on association-related plans (Rauber, San Francisco Business Times, 9/10).
CalPERS -- the nation's largest pension system -- is the third-largest purchaser of health care in the U.S. after the federal government and General Motors. CalPERS provides coverage to 1.2 million people annually (California Healthline, 8/17). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.