OAKLAND, October 12 — Blue Shield of California is providing assistance to its members impacted by wildfires and mandatory evacuations in various California counties. The company is allowing immediate refills of prescription medications for members with prescription drug benefits, and offering virtual care, behavioral health resources, care management, and vision plan services. For members displaced by the wildfires, durable medical equipment and supplies can be replaced.
Members can access their ID cards online or through the Blue Shield app. The company has also provided information on resources available from the California Office of Emergency Services, the Federal Emergency Management Agency (FEMA), and DisasterAssistance.gov for help with expenses caused by the wildfires.
Company Background and Structure
Blue Shield of California is a mutual benefit corporation and health plan, founded in 1939 by the California Medical Association. It is based in Oakland, California, and serves 4.5 million health plan members and more than 65,000 physicians across the state. The organization was incorporated in 1939 and began offering coverage on March 6 of that same year.
From 1966 to 2018, the organization was headquartered at 50 Beale Street in San Francisco.
Historical Developments and Market Position
In 1946, the organization was among the founders of the National Association of Blue Shield Plans, which later became the Blue Cross and Blue Shield Association. In 1950, the Blue Shield of California health plan began offering catastrophic coverage. By 1961, it had one million subscribers of its health plan.
In 1984, it began covering heart transplantations offered at Stanford University Medical Center. Blue Shield began offering information on benefits and enrollment on the Internet in 1996, and offering an online enrollment system for agents in 1998.
In 1997, Blue Shield acquired the managed care company CareAmerica.
Recent Initiatives and Financial Approach
In 2010, Blue Shield of California, Dignity Health, and Hill Physicians Medical Group formed an Accountable Care Organization that covers 41,000 individuals in the California Public Employees Retirement System (CalPERS). During its first 2 years, this program reduced inpatient use and health care costs significantly. In 2011, Blue Shield announced that it would cap its net income at no more than 2% of revenue, contingent on approval from the board of directors.
As of 2019, more than $600 million has been returned to customers and the community. In 2015, Blue Shield entered the Medicaid market by acquiring Care1st Health Plan.
Blue Shield sold Care1st Arizona to WellCare in 2017. Care1st California was renamed Blue Shield of California Promise Health Plan in 2019. In 2019, Blue Shield of California launched the healthcare company Altais.
In 2020, Altais acquired the San Francisco practice Brown & Tolland. In 2021, Altais acquired the Los Angeles County practice Family Care Specialists.
The provider network currently includes 65,000 physicians and more than 340 hospitals statewide. In the California Healthcare Quality Report Card 2009 Edition, Blue Shield of California received 3 out of 4 stars in Meeting National Standards of Care and 2 out of 4 stars in How Members Rate Their HMO. As wildfire seasons intensify, the company’s disaster response capabilities will remain a point of focus for members and regulators assessing health plan resilience in climate-related emergencies.
