California Public Employees' Retirement System trustees are considering a plan that would place all CalPERS health plans under the control of a single outside administrator, the Sacramento Bee reports. The plan is motivated by CalPERS' desire to increase its clout in health care purchasing. CalPERS is the nation's third-largest purchaser of health care.

Under the plan, the administrator would be charged with negotiating health insurance rates for CalPERS' 1.2 million beneficiaries, as well as studying disease management programs and other strategies for reducing health care costs. George Diehr, chair of the CalPERS Health Benefits Committee, said that the administrator also could help formulate a risk-adjustment plan to distribute the financial risks for each of the fund's health plans.

In the next few weeks, CalPERS will ask health care consultants to propose a framework for an administrator to oversee the fund's HMO and preferred provider organizations plans. Officials expect to present a plan to trustees in December (Chan, Sacramento Bee, 10/18).