If you are a patient at UCSD, UCSF, UCLA, or any other University of California medical facility and carry Blue Shield of California insurance, you may have heard some chatter recently about a potential disruption in coverage. Here is what is really going on—and what it means for you.

The Current Status

Blue Shield of California and the UC Health system are in active contract negotiations. Their current agreement is set to terminate in early July 2025, but both parties are still at the table working toward a resolution.

Who Is Impacted?

These negotiations affect all Blue Shield of California insurance lines, including:

• Small Group employer plans

• Large Group employer plans

• Individual and Family plans (IFP)

• Medicare Advantage plans

This DOES NOT impact Blue Shield Medicare Supplement (Medigap) plans that pair with Original Medicare. However, UCSD recently sent out a confusing notice to Medicare Supplement members, leading many to believe they would lose access to their doctors. That information was incorrect, and we want to clear that up.

If you have a Blue Shield Medicare Supplement plan, your access to UC Health providers is not in jeopardy.

Our Perspective

While the uncertainty is frustrating, we are optimistic that an agreement will be reached—and likely faster than the recent Anthem Blue Cross and Scripps negotiation, which took over four months to resolve. Why? Because this negotiation has statewide implications. It affects every UC Health system in California, not just one region like the Scripps-Anthem dispute, which was San Diego–specific.

Both Blue Shield and UC Health have strong incentives to find common ground quickly to avoid widespread disruption across California.

What You Should Do Now

For now, there is no change in your access to care. We recommend:

• Keeping an eye on communications from Blue Shield

• Not making any changes to your plan based on rumors or unclear messages

• Contacting your insurance broker if you have specific questions

As soon as we receive a final update—whether an agreement is reached or further action is needed—we will share that information right away.

If you have questions in the meantime, we are here to help clarify what all this means for you, your family, and your business.