News Headlines Article

Disagreement Over Charity Contributions Simmers in Blue Shield’s Care1st Deal
California Healthline

The moral of the story about a disagreement over what Blue Shield of California is expected to do in return for approval to enter the Medi-Cal managed care market appears to be “pay close attention to how things are worded.”

Consumer advocates and state officials thought the agreement this fall approving Blue Shield’s plan to buy Care1st Health Plan called for the insurer to increase its charitable contributions by $14 million a year for 10 years. However, neither the word “increase” nor language indicating that idea were included in the agreement. The text calls for Blue Shield to contribute “not less than $14 million a year.”

Blue Shield, which typically contributes more than $30 million a year to its charitable foundation, intends to abide by the agreement and not dip below $14 million. But neither does it plan to increase its charitable giving as part of this agreement, according to company officials.