News Headlines Article

Blue Shield of California limiting profit to 2% of revenue
San Jose Business Journal

Blue Shield of California said Tuesday that it plans to restrict its net income to 2 percent of its revenue. The change will be in effect retroactively to 2010, so Blue Shield said it will return last year’s $180 million excess to its customers via credits. The San Francisco-based company also plans to invest $10 million of the $180 million in state hospitals and doctors’ groups and give $3 million to local nonprofits that help poor people via its Blue Shield of California Foundation.