University officials gathered CEOs of health insurance companies and medical provider organizations to examine the state’s healthcare market over a year.
Even with California’s high HMO enrollment rate of 44 percent — about double the national average — 78 percent of the state’s healthcare costs amounting to $245 billion annually are paid as traditional fee-for-service arrangements.
Authors of the report recommended cutting that number to 50 percent by 2022, replacing it with global budgets and greater integrated care enrollments similar to the Oakland, Calif.-based Kaiser Permanente model.
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