Blue Shield of Calif. Moves Forward With Profit Cap Plan
On Thursday, Blue Shield of California announced that it has begun mailing letters to members who are eligible to receive a credit as part of the company's plan to cap profits at 2% of revenue and allocate any excess funds as credits to policyholders and grants to health care providers and not-for-profit health care organizations. When announcing the plan in June, the not-for-profit insurer said it would distribute $180 million -- the amountÂ by whichÂ Blue Shield exceeded the 2% profit limit in 2010. The insurer said that the letters to members indicate the amount of their credit, which is based on their dues and premiums from May 2011. The credits will be reflected in their October bills.
- "Blue Shield Begins Issuing Credits for Profit" (Colliver, San Francisco Chronicle, 9/9).
- "Employers Get Money Back From Blue Shield" (Robertson, Sacramento Business Journal, 9/9).