Blue Shield Offers to Extend Previous Agreement with Sutter for Two Years

Extension would not include "rate rollbacks"

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Jan 21, 2015, 06:00 ET

SAN FRANCISCO, Jan. 21, 2015 /PRNewswire-USNewswire/ -- Blue Shield of California today offered to extend its contract with Sutter Health through December 31, 2016, to resolve the dispute between the two companies. Blue Shield's proposal would maintain the terms that were in place from 2012 through 2014, except for changes required by law and to limit inflation adjustments.

Sutter's January 20th proposal was not a contract extension. Under their proposal, Sutter would have the ability to increase their charges at will.

Juan Davila, Blue Shield's Executive Vice President for Health Care Quality and Affordability, said, "What Sutter proposed yesterday is not a long term solution for patients. It is in Sutter's best interest, not our members'. We view Sutter's proposal as giving them the opportunity to raise rates without controls.

"We think our members and customers would appreciate a real agreement. By offering a two year contract extension, patients can feel secure and have the peace of mind knowing that their doctor will remain in network. Also, customers who want to preserve their legal rights to a jury trial may do so.

"The time has come to resolve this dispute for patients, members and customers. We believe both sides should be able to agree to this extension very quickly and continue to give Blue Shield members and Sutter Health patients access to affordable care."

Background on Blue Shield of California

Blue Shield of California, an independent member of the Blue Cross Blue Shield Association, is a not-for-profit health plan with 3.4 million members, 5,000 employees and more than $13 billion in annual revenue. Founded in 1939 and headquartered in San Francisco, Blue Shield of California provides health, dental, vision, and Medicare health care service plans in California. The company's mission is to ensure all Californians have access to high-quality care at an affordable price. Blue Shield has contributed more than $325 million over the past ten years to the Blue Shield of California Foundation. Contact your local agent or broker about Blue Shield of California products and services, or visit www.blueshieldca.com.

CONTACT: Blue Shield of California
Stephen Shivinsky
Corporate Communications
(415) 229-5447
[email protected]

SOURCE Blue Shield of California