Blue Shield is urged to keep UCSF ‘in network’

If a new agreement isn’t reached, UCSF Health — including UCSF Medical Center and UCSF Benioff Children’s Hospitals in San Francisco and Oakland — will be out of network for Blue Shield of California members starting July 10, UCSF said on its website.

The change would affect not only plans offered by employers but those through the California Public Employees’ Retirement System, UC Health said.

“It’s almost cliche to say that a health insurance company is putting profits over patients, but that is certainly what Blue Shield is doing,” Chiu said Friday in a press release. “Medical care for tens of thousands of patients across California and the Bay Area will be disrupted if Blue Shield does not act in good faith.”

“My office is actively exploring legal remedies in case Blue Shield fails to reach an agreement and puts patients at risk,” Chiu said

Dorsey, who serves as the Board of Supervisors’ appointee to the San Francisco Health Service Board, criticized Blue Shield’s potential action.

“A large segment of our workforce relied on access to UCSF Health’s physicians and services when they chose Blue Shield during open enrollment,” he said. “For Blue Shield to now materially eliminate these healthcare options — in the middle of a plan year — is, in my view, unfair and potentially a breach of contract.”

Blue Shield, on its web page, placed the blame on UCSF.

“Despite months of negotiations, the University of California Health system administrators have decided to end its contract with Blue Shield of California on July 10, 2025, unless a new agreement is reached with higher reimbursement rates,” the insurer said.

“It is our desire to reach an agreement that ensures members continue to have access to UC Health hospitals and providers at reasonable costs that are sustainably affordable for our customers,” the Oakland-based nonprofit said.

“We will continue to negotiate with UC Health system administrators in good faith.”