Spokesperson Clark McKinley says CalPERS has seen double digit increases in health insurance premiums….and they’re looking to change that. He says the pension fund will invest 700 million dollars in companies that work to make health care more efficient. For example, urgent care centers in rural areas so people don’t have to travel to get more expensive hospital care. McKinley says CalPERS – who serves more than one million workers and retirees – is trying to lead the way:
“It’s the first time that any public pension fund, to our knowledge, has really gone after some of these issues in the health care sector, which is a $2 trillion dollar business in the United States.”
McKinley says if the venture is a success, premiums could go down – but that might take quite a few years. CalPERS will spend an estimated five billion dollars this year on health care.