Business Services Industry

Updates.(Brief Article)

Business Insurance, February, 2001

CalPERS rejects HMO bids, deeming increases too high SACRAMENTO, Calif.--Saying it must draw a line on ``unjustified'' price increases, the California Public Employees' Retirement System late last week rejected price bids from 10 health maintenance organizations for its 2002 health plan contracts.

Price increases submitted by the HMOs ranged from 5.5% to 41% and included plans with a wide variety of designs and copayments, CalPERS reported. The organization's Retirement System Board of Administration also ordered its staff to solicit new bids for retiree health benefits, with no more than seven best offers. ``The board defined `best offers' as those that focused largely on price but also considered service, care management and access to providers,''...

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