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% of revenue. In any year that Blue Shield earns more than 2%, we will return the difference to our customers and the community, with approval by the board of directors.
To date, Blue Shield has returned more than $470 million to customers and the community to offset net income earned above the 2 percent threshold in 2010 and 2011.
In 2012, Blue Shield will again fulfill our 2% Pledge commitment and will return $50 million to our customers. The funds will be returned to eligible customers in the form of credits on their billing statement for December 2012 dues/premium.
The 2% Pledge funds will be returned to customers as follows:
Fully insured individual plan (including Medicare Supplement) and group customers will receive a 9% credit on one month’s dues/premium
Customers with whom we share risk will receive a 3% credit on one month’s dues/premium
Self-funded groups are not eligible for the credit, nor are persons covered under certain federal and state government contracts that don’t provide a way to give credits.
Customers will be sent a letter in November 2012 notifying them of their credit amount. The credits are based on customers’ August 2012 dues/premium amount.