Spotlight: CalPERS to Increase HMO Offerings

The California Public Employees’ Retirement System said it plans to increase the number of health maintenance organizations it offers to its 1 million members in a bid to keep down costs and expand access. CalPERS instituted a moratorium on adding new HMOs in the late 1980s, when members could choose from among 30 plans. Industry consolidation has cut that choice to 10. CalPERS said it plans to add HMOs that offer specialized patient services, such as disease management and improving one’s medical care.