What should the thermostat temperature be on a 1995 Saturn?

My OEM thermostat is labeled 85 (Celsius), which is 185 degrees F. This car was originally purchased in Arizona. Now I see everywhere on discussion forums and such that the OEM temperature is 195 F (that is a little below the mid scale on an unmodified gauge). It won't harm the vehicle to run hotter, especially in colder climates, gas mileage will improve somewhat, but performance will worsen.