‘Reckless' Blue Shield move threatens UC Health access, says S.F. City Attorney
In a letter sent Thursday to Blue Shield's interim CEO Mike Stuart, City Attorney David Chiu and Supervisor Matt Dorsey urged the insurer to finalize an agreement with UC Health, which includes UCSF Medical Center and its affiliates.
Negotiations between the two health care giants have stalled over reimbursement rates, with Blue Shield warning that UC Health plans to terminate the contract on July 10 unless a new deal is reached.
The impasse could affect tens of thousands of Californians insured through employer plans, Covered California, CalPERS and Medicare.
They cited potential disruptions for roughly 5,000 San Francisco Health Service System members — city employees and retirees — who rely on UCSF providers for essential services, including cancer treatments and specialty care.
'Blue Shield's termination of its relationship with UC Health in the middle of a coverage period is unacceptable,' the letter stated. 'Blue Shield's improvident and reckless position upends the expectations of the members who chose Blue Shield coverage and the City agencies that approved the Blue Shield rates last year.'
Dorsey added, 'Here's the bottom line: a large segment of our workforce relied on access to UCSF Health's physicians and services when they chose Blue Shield during open enrollment. For Blue Shield to now materially eliminate these healthcare options — in the middle of a plan year — is, in my view, unfair and potentially a breach of contract.'
'UC Health continues to do our part to negotiate with Blue Shield in hopes of reaching a new, fair agreement to preserve in-network access to UC Health locations without interruptions for Blue Shield of California members,' the UC Office of the President said in a statement this month.
The City Attorney's Office is now evaluating legal avenues, signaling that legal action is possible if Blue Shield fails to preserve in-network access to UC Health.
'There is no more time to waste,' the letter emphasized. 'Blue Shield needs to prioritize patient care.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
4 hours ago
- Forbes
Four Steps To Saving Money On Hospital Care
My older brother recently had knee replacement surgery. He tried to get information from his orthopedic team about what it would cost. You see, he was about to sign up for Medicare (I told you: older brother) and wanted to know his out-of-pocket costs under different insurance plans. No one on the healthcare team could help him. Even as medical professionals, they were too confused by the insurance system to figure out their own billing. That is unacceptable. But it is not even a full picture of how dysfunctional healthcare pricing is in the US. I have written a lot (here, here, and even a book) about the maddening inscrutability of American healthcare prices, so I thought it would be impossible to get even angrier about the topic. Then I came across a study by Merina Thomas, Peter Cram, and colleagues out of the University of Texas Medical Branch in Galveston. The research team hunted for healthcare prices online at 60 US hospitals. Then they had 'secret shoppers' call the hospitals to get prices. Two chances to get information, in other words; two opportunities to find out what things cost. And what did the study show? 1. There was enormous variation in prices, a major reason it is critical for patients to shop. At one top-ranked hospital, a brain MRI cost only $418; at another it cost $6864. The average price hovered around $2500. At one top-tier hospital, an uncomplicated vaginal childbirth cost less than $11,000; at another it cost more than $14,000. 2. Prices were often inconsistent within the same hospitals. A given hospital would quote one price online and another price when talking to a secret shopper on the phone. Some of these discrepancies were befuddlingly large. A $20,000 online quote for childbirth, but a quote of only $4000 by telephone. A $7000 online estimate for an MRI compared to less than $2000 estimate given by telephone. Here is a picture of these discrepancies: What is an American to do? First, look online for price information when you face potential out-of-pocket costs. Second, if you cannot find price information online, make a phone call. Third, even if you do find online information, call up the hospital – you might get a lower estimate. Take down the name of the person you spoke with and hold the hospital to whichever estimate is lower. Fourth, if you have a choice of hospitals for a test or procedure, take the time to shop around. Without price pressure from patients, hospitals will keep charging too much while doing their best to hide their prices.
Business Insider
12 hours ago
- Business Insider
Why Warren Buffett and Hedge Funds Are Betting on UnitedHealth Stock (UNH)
UnitedHealth Group (UNH) has recently drawn strong interest from top investors and hedge fund managers, including Warren Buffett and Michael Burry. Each made sizable new investments in the health insurer during Q2, signaling confidence in its potential for a rebound. The stock jumped nearly 11% in after-hours trading yesterday. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Berkshire and Burry Are Betting on UnitedHealth's Rebound Warren Buffett's Berkshire Hathaway (BRK.B) disclosed a $1.57 billion investment in UnitedHealth, acquiring roughly 5 million shares, as revealed in its Q2 2025 13F filing. This marks Berkshire's first stake in the company since selling out in 2010, when Buffett exited amid a broader pullback from health insurers. Meanwhile, Burry's Scion Asset Management revealed a combination of call options tied to 350,000 UnitedHealth shares and a direct holding of about 20,000 shares, valued at $6 million. Burry's position is notable because he is betting on a rebound in a stock that has fallen nearly 46% so far this year. The move follows better-than-expected Medicare Advantage rates for 2026, and UnitedHealth's competitive positioning remains solid despite recent turbulence. Analysts See Growth Potential Despite Challenges These investments come despite a challenging year for UnitedHealth, marked by surging medical costs, a Justice Department probe into Medicare billing, and a cyberattack. Q2 earnings also disappointed, with profits falling sharply due to higher-than-expected medical costs across both Medicare Advantage and commercial plans. The company now anticipates an additional $6.5 billion in medical costs this year, with effects likely extending into 2026. On the positive side, UnitedHealth maintains that its long-term growth plan is on track, focusing on AI tools and improving patient care. Analysts see roughly 15% upside from current levels, supported by the company's steps to address operational challenges and an updated financial outlook. average UnitedHealth stock price target implies a 15.03% upside potential.
San Francisco Chronicle
16 hours ago
- San Francisco Chronicle
Valley fever is rising across California. Numbers are skyrocketing in one coastal county
Valley fever, an infection caused by breathing in fungal spores in dirt or dust, is on the rise across California, according to a news release by the California Department of Public Health. Over 6,700 provisional cases have been reported across California through the first seven months of 2025. The rates are highest in the San Joaquin Valley, the disease's namesake, but cases have been increasing in the northern Central Valley and the Central Coast. 'Valley fever is a serious illness that's here to stay in California,' said California Department of Public Health director and state public health officer Erica Pan, in a statement. 'We want to remind Californians, travelers to California and their healthcare providers to watch for signs and symptoms of valley fever to help detect it early.' The biggest rise in valley fever in recent years has been in coastal Monterey County, which has logged 348 cases in 2025, through the end of July. That's an increase of over 260% compared with the 2023-24 average. Ventura County had the next-highest increase, 92%. California recorded nearly 12,500 cases of valley fever in 2024, the most in a single year. By comparison, the state logged 7,000 to 9,000 cases per year from 2017 through 2023. Valley fever can occur any time of year, but infections typically happen in late summer and fall. The disease is caused by the fungus coccidioides, which grows in the soil in parts of California. Wet winters help the fungus grow while dry, windy weather during warmer months helps spread spores in the air. People living in areas with high rates of valley fever face higher risk of infection, especially if they live or work near where dirt is stirred up, like farms and construction sites. Where valley fever is common, experts recommend people stay inside and keep windows and doors closed when it's windy and dusty outside. They also suggest drivers keep car windows closed and use recirculating air, if possible. Experts recommend that those who have to be outside in dusty air consider using a well-fitted N95 respirator. Not everyone who gets valley fever experiences symptoms. But some people can deal with long-term coughing, fatigue and other flu-like symptoms. In rare cases, valley fever can cause severe lung infections and even become fatal. In 2024, there were at least 19 confirmed cases of valley fever after a music festival in Kern County. Of all California counties, Kern County has logged the highest number of cases of valley fever so far in 2025, with 1,945 provisional cases reported. Over 100 cases of valley fever have been provisionally reported in Contra Costa County in 2025, through the end of July. The total is the most of any Bay Area county. Research indicates that the rise and spread of valley fever may be linked to changes in climate. A 2024 study reported that swings between wet and dry conditions, which are expected to intensify in a warmer world, were associated with more cases of valley fever.
