CalPERS Kicks Off Process To Collect Bids for HMO Coverage
On Monday, CalPERS issued a request for proposals for an HMO to compete with Kaiser Permanente in CalPERS health benefits pool beginning in 2011, the Sacramento Business Journal reports.
In a release, CalPERS Board President Rob Feckner said the pension fund would like an HMO that will join it in "an aggressive risk-sharing arrangement."
The RFP indicates that CalPERS is looking for a health plan that will share information about pricing and operations and asks bidders if they are able to offer HMO coverage in some areas of California that currently do not offer a CalPERS HMO option.
Blue Shield of California currently offers an HMO option to CalPERS members.
Tom McCaffrey, vice president of Blue Shield's CalPERS unit, said the insurer will solicit a bid to continue its relationship with CalPERS.
Bidding Process Details
Initial bids are due by Feb. 13.
The first phase of the bidding process is to identify prospective bidders and to guarantee they meet minimum qualifications.
In the spring, the second phase of the process will take place, including the scanning of bidders' responses and qualifications.The RFP process takes place under the shadow of Gov. Arnold Schwarzenegger's (R) call for the state to directly negotiate health insurance benefits for the state's 55,000 workers, sidestepping CalPERS (Robertson, Sacramento Business Journal, 2/2). 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.