CalPERS’ Plan To Hire Single Administrator Garners Wide Interest
Ten insurers, brokerages and consultancies have expressed interest in serving as a single administrator of health care benefits for CalPERS' 1.2 million enrollees, the Sacramento Business Journal reports (Robertson, Sacramento Business Journal, 11/19).
The administrator would be charged with negotiating health insurance rates, as well as studying disease management programs and other strategies for reducing health care costs.
George Diehr, chair of the CalPERS Health Benefits Committee, said that the administrator also could help formulate a risk-adjustment plan to distribute the financial risks for each of the fund's health plans.
The plan is motivated by CalPERS' desire to increase its clout in health care purchasing (California Healthline, 10/18).
The 10 companies expressing interest responded to a request for information by CalPERS last month.
CalPERS spokesperson Karen Perkins said the pension fund is currently reviewing the responses. If CalPERS executives support hiring a single administrator, the health benefits committee will issue a request for proposals as early as next spring.
Perkins said CalPERS could adopt a single-administrator model by 2009.
The companies expressing interest are:
- Blue Cross of California;
- Blue Shield of California;
- Buck Consultants;
- George Michael & Associates;
- Kaiser Permanente; and
- United Healthcare (Sacramento Business Journal, 11/19).