Physician fees under Medicare will go up an average of 4.5 percent next year.... The number of HMOs participating in the Federal Employees Health Benefits Plan dropped by 40 percent, to 277, this year. The most frequent reasons, according to a General Accounting Office report, were low enrollment and "noncompetitive premiums".... The California Public Employees' Retirement System (CalPERS)has seen a 40-percent increase in medical costs during the last two years, prompting a WebMD report that the agency has depleted reserves to a single month of claims payments.... Foundation Health Systems changed its name to Health Net. Its California plan is teaming with a Mexican HMO to provide a cross-border product for California employers whose workers live or have family in Mexico.... Adequate dialysis for patients with kidney disease would result in annual savings of $150 million, according to researchers at Case Western Reserve University.