The California Public Employees’ Retirement System is implementing a significant change to one of its main health insurance plans for the state’s employees and retirees. This change involves switching health insurance carriers and requiring the new partners to earn their fees rather than automatically receiving them.
This new contract could set a precedent for other large employers who are responsible for their workers’ health care costs and want their insurance companies to play a more active role in controlling prices and guiding individuals towards high-quality providers.
CalPERS, also known as the group, is moving away from Elevance Health for its preferred provider organization health plans (PPOs) and has instead signed a five-year contract with Blue Shield of California, beginning in 2025. Additionally, CalPERS is partnering with Included Health to assist its members in finding doctors and hospitals with higher quality ratings and more affordable prices.
Reasons for CalPERS choosing Blue Shield over Elevance for PPO health plans
