The California Public Employees' Retirement System approved a cost-cutting plan that would increase co-payments for some office visits and allow Blue Shield of California to exit El Dorado County.
...
The CalPERS board on Wednesday also approved Blue Shield's proposal to withdraw from parts of El Dorado County, where the health maintenance organization's costs are 39 percent higher than CalPERS statewide average.
"Unfortunately, the costs to deliver care through the existing model have become unsustainable," Rob Feckner, CalPERS board president said in a news release. "However, our members will continue to receive quality care through our other existing plan options."
El Dorado County CalPERS members can enroll in another HMO or preferred provider organization, including a new PPO plan called PERS Select the board approved today. PERS Select has a smaller group of providers available to members.
Blue Shield held meetings in El Dorado County from November through February to determine cost drivers and how to reduce them, but told CalPERS the met with limited success. The HMO said hospital costs are prohibitive in El Dorado County -- 78 percent higher than the statewide average.
CalPERS also approved Blue Shield's withdrawal from Lake, Napa and Plumas counties. The HMO will exit these areas beginning in January, and about 9,100 members will be impacted. CalPERS expects the premium savings will be $30 million.
###
READ MORE
http://www.bizjournals.com/sacramento/stories/2007/05/14/daily30.html
Sacramento Business Journal - 2:42 PM PDT Wednesday, May 16, 2007
by Mark Anderson
Staff writer
Technorati Tags: 
