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Our Pledge to Keep Healthcare Affordable


Blue Shield of California’s 2% Pledge reflects our commitment to our not-for-profit mission to provide all Californians with access to quality care at an affordable price. We pledge to limit our annual net income to 2 percent of revenue. In any year in which Blue Shield earns more than 2 percent, we will return the difference to our customers and the community, with approval from our board of directors.

Since 2011, the company has returned $560 million to customers and the community. In 2014, $19 million was returned to the community under our 2% Pledge program in the form of a contribution to Cal INDEX.

It is Blue Shield’s goal to set rates and manage performance such that we earn no more than 2% in profits. While we have pledged to return any amount earned above that level to benefit the community or to be credited directly to  customers, our objective is to manage the company’s resources and set rates within this 2% goal. Our 2014 net income was 1.2%. Because our net income for fiscal year 2014 came in below 2%, we will not be returning funds to our customers or the community under the pledge.

We remain committed to our 2% Pledge, to limiting our profits and to investing in our community and to our affordability mission.

Pledge Background

The 2% Pledge commitment was announced by then CEO Bruce Bodaken on June 7, 2011 in a speech at the Commonwealth Club. Read a transcript of the speech, “Our Commitment to Health Insurance Affordability,” here.

Read past news releases on the 2% Pledge here: