Schwarzenegger’s Plan for Employee Benefits Draws Questions
Health care stakeholders are questioning the implications of Gov. Arnold Schwarzenegger's (R) proposal to shift responsibility for buying health insurance for state employees from CalPERS to the state, Capitol Weekly reports.
As part of his most-recent budget proposal, the governor said the state could save money "by contracting for lower-cost health care coverage directly from an insurer rather than through CalPERS."
The state Department of Finance estimates that the proposal could save the state $132 million annually, beginning in 2010 when the proposal would be put in place.
Capitol staff members said savings could be achieved by eliminating intermediaries in the PPO system.
However, Anthony Wright, executive director of Health Access, questioned whether the proposal would yield savings, adding, "The idea of breaking up the pool of local and state workers seems to be more about power or control than in actually saving any money."CalPERS has not responded to the governor's plan publicly (Howard, Capitol Weekly, 1/22). 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.