OTHER NEWS - Feb. 11, 1993

CalPERS Negotiates Cut in Health Costs: The California Public Employees’ Retirement System said it negotiated a reduction in 1993-1994 premiums from 19 health maintenance organizations that will save $108 million for 692,000 members. A similar reduction in health expenditures nationwide would save almost $90 billion, a consultant to the system said. “CalPERS doesn’t pay list price for health care anymore,” said Tom Elkin, assistant director of CalPERS. “By demanding cost and performance data, we have become a better-informed consumer.” Last year, CalPERS saved $70 million by holding premium increases to an average of 6.1%. Over two years, while national health costs soared 30%, CalPERS held premium increases to 7.6%.