News Headlines Article

Blue Cross program cut price of knee, hip surgery for CalPERS
Sacramento Business Journal

Faced with wide variation in hospital charges for total knee- and hip-replacement surgeries — with no measurable difference in quality — the California Public Employees’ Retirement System and Anthem Blue Cross tried steering patients to hospitals that offer the best bang for the buck. The program lowered the cost of surgeries by 19 percent, saving CalPERS $2.8 million in 2011 and $2.7 million in 2012. Employee costs stayed the same or dropped slightly.