HMO premiums to rise 25 percent for CalPERS members.

• Position: News Briefs

After receiving bids that proposed increases ranging from 15.1 to 41.1 percent, the board of the California Public Employee Retirement System said HMO premiums would rise an average of 25.1 percent for 2003. CalPERS also is dropping two of its health plan providers--a move it says will save more than $77 million. As the nation's second largest purchaser of health care, CalPERS is an important barometer of health care costs for employers and consumers. A year ago, the CalPERS board rejected similar proposals from its providers and asked them to submit better bids. This resulted in an increase of 13.2 percent for basic HMO coverage, which the system passed on to its members in the form of higher co-payments and a multi-tier drug plan that requires...