07/07/2025
Blue Shield negotiations with UC Medical has been extended to August 9th.
Supervisors Dorsey and Melgar will present the resolution below to SF Board of Supervisors on Tuesday, July 8, 2025 for a voteFILE NO. RESOLUTION NO.
Supervisor Dorsey, Melgar
[Urging University of California Health and Blue Shield of California to resolve dispute
regarding reimbursement for medical services and treatment]
Resolution urging University of California Health and Blue Shield of California to
resolve dispute regarding reimbursement for medical services and treatment.
WHEREAS, University of California Health (UCSF Health) and Blue Shield of California
(Blue Shield) began renegotiating their insurance contracts on June 11, 2025; and
WHEREAS, The two parties have agreed to extend their current contract by 30 days to
August 9, 2025; and
WHEREAS, The University of California San Francisco’s hospitals and medical
institutions treat more than two and a half million outpatients a year and 41,000 inpatients,many of whom are insured by Blue Shield of California; and
WHEREAS, One Medical, which is an affiliate of UCSF Health, provides primary care
to many San Franciscans, including some insured by Blue Shield; and
WHEREAS, This dispute disproportionately jeopardizes the healthcare of elderly San
Franciscans and Californians, some 35,000 of whom receive Blue Shield insurance through the California Public Employees’ Retirement System (CalPERS) and rely on UCSF Health for medical treatment; and
WHEREAS, Blue Shield provides medical insurance to approximately 5,000 City
employees and retirees; and
WHEREAS, Many San Francisco Health Service System (SFHSS) members chose
Blue Shield because of the relationship with UCSF Health, and that termination of its
relationship with UCSF Health in the middle of a coverage period may pose unprecedented challenges and hardships; and
WHEREAS, Many SFHSS members receive healthcare at UCSF Health and its affiliates, and their access to medical services hinges upon the continuation of UCSF Health’s contract with Blue Shield of California; now, therefore, be it
RESOLVED, That the Board of Supervisors urges UCSF Health and Blue Shield to
resolve their dispute by renewing their contract, thereby continuing to preserve members’ ability to access crucial healthcare services; and, be it
FURTHER RESOLVED, That the Board of Supervisors urges, in the event that no
long-term resolution between Blue Shield and UCSF Health is possible, that the parties at minimum commit to preserve existing services for the remainder of the plan year, and provide certainty of future benefits for the 2026 plan year in time for Open Enrollment; and, be
FURTHER RESOLVED, That the Board of Supervisors hereby directs the Clerk of the
Board to send a copy of this resolution to Interim CEO and President of Blue Shield of
President and CEO of UCSF Health Suresh Gunasekaran.California Mike Stuart, CEO of the Blue Cross Blue Shield Association Kim A. Keck, and President and CEO of UCSF Health Suresh Gunasekaran.