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CalPERs may break up HMO deal with Blue Shield, LAT says

Officials at the California Public Employees' Retirement System, the country's third-largest healthcare buyer, are in favor of breaking up Blue Shield of California's current statewide HMO contract and replacing it with as many as four plans, The Los Angeles Times reported earlier. Four bidders -- Anthem Blue Cross, UnitedHealth (UNH), Health Net (HNT) and Sharp Health Plan-- appear to be in the running for some of the business, while CalPERS staff expressed concern about contracting with Aetna (AET) or GEMCare Health, the report said. Note that WellPoint (WLP) serves members as the Blue Cross licensee for California.