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To Control Costs, CalPERS Rejects All Bids for 2002

In a dramatic attempt to keep a lid on health care premiums, the California Public Employees' Retirement System threw out every bid it received from health plans competing for a chunk of its business in 2002.

CalPERS says it was offered premium hikes ranging from 5 to 40 percent. Plans were invited to re-bid, though now CalPERS will select only the seven most competitive bids. The country's second-largest health care purchaser currently contracts with 11 plans.

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