November 8, 2012
External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Bill Madison, Information Officer
CalPERS Supports NCHC Strategies for Reducing Long-Term Health Care Costs
SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) today announced its support of a paper released by the National Coalition on Health Care (NCHC) that charts a seven-point strategy to resolve two major issues facing the country: closing the immediate gap between federal spending and revenues, and addressing the long-term challenge of rising health costs.
The paper, “Curbing Costs, Improving Care: The Path to an Affordable Health Care Future,” issued today by the NCHC, also highlights what the Coalition considers to be health system “game changers,” ideas the organization thinks could have a transformative impact on federal health spending and the private sector over the long term.
The NCHC strategies are designed to reduce the impact of health care costs on the federal government short-term budget and simultaneously build a health care system that is affordable and sustainable over the long term. CalPERS efforts to control costs, increase value, and improve quality and efficiency in the health care system align with many of the strategies proposed in the paper.
“The National Coalition on Health Care’s emphasis on these aspects of health care is in line with CalPERS approach to providing the best quality, most cost-effective care we can to our members,” said Priya Mathur, Chair of CalPERS Pension and Health Benefits Committee. “The NCHC strategies emphasize value-based purchasing, promoting transparency of health care costs, broad-based use of generic prescription drugs, coordinated care, and prevention and wellness programs. These are all steps that CalPERS has incorporated in its member health plans, and we will continue on that path.”
The NCHC paper claims its recommendations can lead to combined federal budgetary savings of nearly $550 billion.
The NCHC paper, “Curbing Costs, Improving Care: The Path to an Affordable Health Care Future,” can be found on the NCHC website.
CalPERS is the nation’s largest public pension fund with approximately $245 billion in assets, providing retirement benefits to more than 1.6 million State, public school, and local public agency employees, retirees, and their families, and health benefits to more than 1.3 million members. The average CalPERS pension is $2,420 per month. The average benefit for those who retired in the fiscal year that ended June 30, 2012, is $3,025 per month. For more information about CalPERS, visit www.calpers.ca.gov.