The California Public Employees’ Retirement System is undergoing a significant change in one of its primary health insurance plans for state employees and retirees. They are transitioning to a new health insurance carrier, Blue Shield of California, and requiring their new partners to earn their fees instead of receiving them automatically. This move could set a precedent for other large employers seeking ways to control costs and guide individuals towards high-quality providers.
CalPERS, also known as the California Public Employees’ Retirement System, is replacing Elevance Health with Blue Shield of California for its preferred provider organization health plans (PPOs) in a five-year agreement starting in 2025. In addition, they have partnered with Included Health to assist members in finding doctors and hospitals that have higher quality scores and are more cost-effective.
With this new approach, CalPERS is taking proactive steps to ensure that their members receive top-quality medical care at reasonable costs. This move could influence how other large employers manage their health care costs and work with insurance providers to improve the quality and affordability of care for their employees.
