This just out from CalPERS' Office of Public Affairs:
The California Public Employees' Retirement System (CalPERS) Board of Administration today approved using $265 million in excess reserves from its self-funded preferred provider organization (PPO) plans to offset premiums and contributions paid by members and employers for two months. It is subject to approval of a technical change in State law.
The Board's action to use the multi-million dollar reserves to offset health premiums will mean an average savings of $134 over two months for 324,000 CalPERS members enrolled in its PPO plans, a total savings of more than $43 million over two months.The decision also frees up nearly $131 million for the State of California, and more than $91 million for over 1,140 contracting agency employers - entities that have been struggling with budgetary shortfalls and revenue loss.
You can read the entire press release here.
The fund also announced this:
The CalPERS Board of Administration today approved a pilot program designed to improve health care quality, enhance service, and reduce costs. CalPERS will partner with Blue Shield of California, Catholic Healthcare West (CHW), and Hill Physicians Medical Group to implement the pilot starting January 2010.
The program will create an integrated health care model that aligns incentives among the health plan, hospital system, and medical group. These entities have also agreed to be at financial risk should the pilot's cost reduction goals fall short of expectations.
Click here for more details.
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