Health Insurance: California Public Employees' Alliance Has Reduced Recent Premium Growth (Letter Report, 11/22/93, GAO/HRD-94-40). As part of the ongoing debate over health care reform, policymakers have been weighing the pros and cons of alternative ways to purchase care. The administration's health care reform package and other recent reform proposals call for purchasing cooperatives to manage competition among health care plans. One frequently cited example of a successful purchasing cooperative is the California Public Employees' Retirement System (CalPERS), which negotiates health premiums for many public employees in California. This report analyzes CalPERS' effectiveness in controlling health care costs for its members. GAO (1) examines CalPERS' cost-containment record, (2) identifies factors that have contributed to the trend in its premium rates, (3) assesses the impact of CalPERS' cost-containment efforts on its members' benefits, and (4) discusses the applicability of its Health Benefits Program as a model of managed competition--a system under which large purchasing cooperatives contract with a variety of competing health plans on behalf of employers and individuals. --------------------------- Indexing Terms ----------------------------- REPORTNUM: HRD-94-40 TITLE: Health Insurance: California Public Employees' Alliance Has Reduced Recent Premium Growth DATE: 11/22/93 SUBJECT: Health insurance cost control Insurance premiums Employee benefit plans Health maintenance organizations Fringe benefit costs State employees Municipal employees State programs IDENTIFIER: CalPERS Health Benefits Program (CA) CalPERS PERSCare Plan (CA) CalPERS PERSChoice Plan (CA) California National Health Care Reform Initiative Clinton Health Care Plan Health Security Act ************************************************************************ We regret that the full text of this item is presently unavailable. See the GAO FAQ - Section 2.0 for printed copy ordering information. The FAQ is automatically retrieved with all WAIS search results or can be obtained by sending e-mail to: [email protected]