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Blue Shield loses quasi-monopoly on CalPERS health insurance
Sacramento Bee

In a bid to curb health care inflation, CalPERS is splitting up its multibillion-dollar HMO contract among five different companies.

The decision Wednesday by CalPERS’ governing board ends a quasi-monopoly enjoyed by Blue Shield of California. The company will continue to run CalPERS’ HMO plan but will now have to share the business over the next five years with Anthem Blue Cross, Health Net, Sharp and United Health Care. About 400,000 members, one-fourth of the CalPERS population, will be affected.