News Headlines Article

CalPERS divides HMO contract between 5 plans, diluting Blue Shield’s role
San Francisco Business Times

The California Public Employees’ Retirement System said late Wednesday that it’s splitting the HMO contract now held by Blue Shield of California among five health plans, including San Francisco-based Blue Shield. The move, though not unexpected, is a big blow to Blue Shield and new CEO Paul Markovich. CalPERS is looking to create more competition among health plans, with a view toward keeping costs low and quality high.