The Health Benefits Committee at CALPERS approved a 12% rate increase for basic HMO coverage in 2007.  This will apply to more than a million members in California. 

A bid by Blue Shield to withdraw from high-cost rural counties was rebuffed by the Calpers committee…but a three-year contract with Blue Shield was okayed. Meanwhile, Blue Cross is proposing a preferred provider plan that would economize by cutting the network in half, using just cost-efficient doctors. That proposal was deferred to a later time. 

The employees and retirees covered by CalPers will see higher costs for their coverage starting in January.