CALPERS: Blue Cross Tentatively Awarded PPO Contract

      The CalPERS Board of Administration has tentatively selected Blue Cross of California to administer its self-funded PERSCare and PERS Choice preferred provider health plans for the next three years. Blue Cross will receive $69 million for the contract -- $3.6 million less than the existing carrier, Blue Shield of California. The new contract, which would take effect on January 1, 1999, affects services for 164,000 CalPERS members. Kurato Shimada, chair of CalPERS' Health Benefits Committee, said, "The board selected Blue Cross not only because of its lower administrative fees, but because of its exceptional customer service features for our members, including one-phone-call service." He added, "Their operations fit very well with our requirements for top-notch customer service, and we are very impressed with the advanced technological claims processing facility, which includes high-speed computerized claims processing." According to CalPERS, the board made its decision contingent upon guarantees for network discounts, size and stability, and a requirement that a portion of the fees be tied to satisfactory performance. A final contract is expected to be completed in the near future (CalPERS release, 4/8).