After weeks of contract negotiations that threatened to disrupt medical care for tens of thousands of Californians, UC Health and Blue Shield of California have reached a new agreement.
Tuesday’s deal means patients who get medical care at UCSF and five other UC Health academic medical centers statewide through Blue Shield can continue accessing services at in-network rates. This had been up in the air, with the previous contract slated to expire Aug. 9. If the two sides had not reached an agreement, patients would potentially have had to find a new doctor or new insurer, or pay out-of-network rates.
The contract applies to people on CalPERS plans, employer plans, Covered California plans and Medicare plans (including Medicare Advantage) offered or administered by Blue Shield.
In the Bay Area, this includes residents insured by Blue Shield who get care at UCSF Medical Center, UCSF Benioff Children’s Hospitals, UCSF Medical Group, UCSF Benioff Children’s Physicians and the primary care provider, One Medical, a UCSF affiliate.
UC Health and Blue Shield had been renegotiating contracts to establish how much Blue Shield will reimburse services provided by UC Health hospitals, clinics and other facilities. Such negotiations between providers and insurers are routine, though they have grown more public and contentious in recent years, often with both sides accusing the other of harming patients through higher prices or less accessible care.
“We are dedicated to ensuring members have access to affordable care and are pleased to be able to continue our partnership with UC Health,” Blue Shield of California said in a statement.
A spokesperson from UC Health said, “We’re pleased to have resolved this uncertainty for our patients with Blue Shield insurance — avoiding any gaps in access and allowing us to continue delivering high-quality care.”