‘Reckless' Blue Shield move threatens UC Health access, says S.F. City Attorney
San Francisco officials are urging Blue Shield of California to resolve its contract dispute with UC Health, warning that the breakdown threatens access to critical care for thousands of San Francisco city workers and retirees.
In a letter sent Thursday to Blue Shield's interim CEO Mike Stuart, City Attorney David Chiu and Supervisor Matt Dorsey urged the insurer to finalize an agreement with UC Health, which includes UCSF Medical Center and its affiliates.
Negotiations between the two health care giants have stalled over reimbursement rates, with Blue Shield warning that UC Health plans to terminate the contract on July 10 unless a new deal is reached.
The impasse could affect tens of thousands of Californians insured through employer plans, Covered California, CalPERS and Medicare.
They cited potential disruptions for roughly 5,000 San Francisco Health Service System members — city employees and retirees — who rely on UCSF providers for essential services, including cancer treatments and specialty care.
'Blue Shield's termination of its relationship with UC Health in the middle of a coverage period is unacceptable,' the letter stated. 'Blue Shield's improvident and reckless position upends the expectations of the members who chose Blue Shield coverage and the City agencies that approved the Blue Shield rates last year.'
Dorsey added, 'Here's the bottom line: a large segment of our workforce relied on access to UCSF Health's physicians and services when they chose Blue Shield during open enrollment. 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.'
'UC Health continues to do our part to negotiate with Blue Shield in hopes of reaching a new, fair agreement to preserve in-network access to UC Health locations without interruptions for Blue Shield of California members,' the UC Office of the President said in a statement this month.
The City Attorney's Office is now evaluating legal avenues, signaling that legal action is possible if Blue Shield fails to preserve in-network access to UC Health.
'There is no more time to waste,' the letter emphasized. 'Blue Shield needs to prioritize patient care.'
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