Article: California Public Employees' Retirement System Hikes Health Insurance Premiums.

Byline: Evan Pondel

Apr. 18--In a pivotal decision that will determine the cost of health-insurance for employers and workers nationwide, the California Public Employees' Retirement System on Wednesday approved a record 25 percent increase in premiums for 2003.

In the final vote, CalPERS delivered a warning to the rest of the nation that the increase in health insurance premiums is a reflection of a fractured industry. The agency also eliminated Health Net Inc. and PacifiCare Health Systems from its network, forcing as many as 150,000 CalPERS families to switch providers.

"This is more than a problem for CalPERS," said Rob Feckner, chairman of ...

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