Tuesday, July 23, 2024

California Employee Retirement System switches to Blue Shield of California

CalPERS Names Blue Shield of California as Sole Health Plan Provider

The California Public Employees’ Retirement System (CalPERS) has made a significant change in its preferred provider organization by naming Blue Shield of California as the sole health plan provider. This decision comes after a two-decade partnership with Anthem Blue Cross, marking a new era for the retirement system and its 1.5 million members.

With over 400,000 PPO plan members set to transition to Blue Shield of California in 2025, along with existing members in other plans, the impact of this change is substantial. Additionally, CalPERS has selected Included Health to provide virtual care and population health management services, further enhancing the healthcare options available to its members.

The partnership between Blue Shield of California and CalPERS is not just about providing healthcare coverage but also about driving positive outcomes in population health. By focusing on advanced primary care models and accountable care organizations, the aim is to improve both the quality and cost of healthcare for all Californians.

One of the key factors that led to Blue Shield winning the bid was its commitment to addressing population health outcomes. With the goal of bending the cost curve and creating a blueprint for others to follow, this partnership has the potential to make a significant impact on the healthcare landscape in California.

However, with the rise in medical costs and high inflation, CalPERS has announced a premium increase of 10.77%. Despite this, both organizations are working towards performance guarantees that aim to decrease cost trends to 3% by 2029. This shared responsibility for cost management demonstrates a commitment to delivering high-quality, cost-effective healthcare to CalPERS members.

Overall, the partnership between Blue Shield of California, Included Health, and CalPERS represents a significant step towards transforming healthcare delivery and improving outcomes for millions of Californians. As the second largest public purchaser of employee health benefits in the country, CalPERS has the opportunity to set a new standard for healthcare excellence.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.

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