Pension funds may drop HMO coverage

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Posted on: Tuesday, December 14, 1999

Pension funds may drop HMO coverage
planetc1.com-news

The Los Angeles Times and Nando News report that two of California's largest pension funds may drop the managed health care coverage for their members and contract directly with doctors and hospitals.

The California State Teachers Retirement System and the California Public Employees' Retirement System are both considering dropping HMO's and together represent about 1.5 million people.

"We have to look at how we can shift the marketplace. And with direct contracting, we can provide services in a more economical fashion," said state Treasurer Phil Angelides.

Contracting directly with doctors has been shown to be effective in other programs.

Links:
MSNBC: Big pension funds may ditch HMOs
Nando: California pension funds may drop managed care (printer friendly)

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