CalPERS said it was able to achieve these savings by lowering member healthcare utilization and boosting generic drug use. In prior years, CalPERS eliminated high-cost hospitals from its network, implemented regional pricing and negotiated tougher contracts with HMO insurers Kaiser Permanente and Blue Shield of California.
This years rates are the result of many years of hard work and health initiatives which have reduced healthcare costs while driving towards higher quality care and better health outcomes, Priya Mathur, chair of CalPERS Health Benefits Committee, said in a written statement. Without these efforts, I have no doubt that rate increases would have been three times as high.
CalPERS provides health benefits to nearly 1.3 million public employees, retirees and family members.
What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.