News Headlines Article

Blue Shield’s catchy cap
Los Angeles Times

Blue Shield of California announced Tuesday that it will cap its profits for the sake of making health insurance more affordable. Richer in symbolism than in economic impact, the move seems designed to deflect scrutiny and blame from insurers onto others in the industry, particularly doctors and hospitals. All the same, the steadily rising cost of medical care is where the real challenge lies for the sustainability of the healthcare system.

Blue Shield Chief Executive Bruce Bodaken said the company is limiting its annual income — the difference between its total revenue and its expenses — to 2% of its revenue.