Blue Shield of California Plans Major Computer System Upgrade
Blue Shield of California is planning to upgrade its computer system, which could cost the insurer $100 million or more over several years, the San Francisco Business Times reports.
According to Blue Shield Chief Information Office Elinor MacKinnon, the system has not had a major upgrade in "at least 10 years." The upgrade will begin this year with preparatory work, and the major portion of the upgrade is planned to begin in 2007, MacKinnon said.
The upgrade will include adding more self-serve functions to the company's Internet capabilities and a business process redesign that will increase automation of Blue Shield's back-office operations, according to the Business Times.
MacKinnon declined to provide more specific details.
Blue Shield spokesperson Elise Anderson said the company plans to spend "tens of millions of dollars" on the upgrade over the next three to five years.
Some former Blue Shield technology executives estimate the project's cost could be as high as $225 million, the Business Times reports (Rauber, San Francisco Business Times, 1/9).