CalPERS Weighing Pitch To Hire Single Health Plan Administrator
CalPERS trustees are mulling a plan to tap a single outside group to administer health care benefits for its 1.2 million enrollees, the Sacramento Bee reports.
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 their clout in health care purchasing.
In the next few weeks, CalPERS will ask health care consultants to propose a framework for an administrator to oversee the fund's HMO and preferred provider organizations plans.
Officials expect to present a plan to trustees in December (Chan, Sacramento Bee, 10/18).